LML4807
ASSIGNMENT 2
DUE DATE: SEPTEMBER 2026
, LML4807 ASSIGNMENT 2 2026
DUE SEPTEMBER 2026
Carefully read the case below, from your prescribed reading list, and answer the following
questions:
Joint Stock v Absa Bank 2008 (4) SA 287 (SCA)
The allocation of marks for this case discussion is as follows:
1. Facts of the Case
The appellant, Joint Stock Company Varvarinskoye, was responsible for establishing the
Varvarinskoye gold-copper mine and processing facilities in Kazakhstan.¹ It appointed MDM
Ferroman (Pty) Ltd as lead contractor under a FIDIC-based contract for US$55,744,623, with
MDM having the right to appoint subcontractors.²
Clause 14.4 was inserted as a protective mechanism to address the appellant's concern about
MDM's history of failing to pay subcontractors.³ The clause required that funds be deposited into
a designated account and could only be withdrawn upon joint signatures from MDM and
Investec Bank.⁴ Account 1313, held by the sixth respondent (Metallurgical Design &
Management (Pty) Ltd), an associated company of MDM, was used as a temporary warehouse
for these funds with Absa Bank.⁵
¹ Joint Stock Company Varvarinskoye v Absa Bank Ltd 2008 (4) SA 287 (SCA) para 4-5.
² Ibid para 8.
³ Ibid para 10-11.
⁴ Ibid para 11.
⁵ Ibid para 1, 13-14.
ASSIGNMENT 2
DUE DATE: SEPTEMBER 2026
, LML4807 ASSIGNMENT 2 2026
DUE SEPTEMBER 2026
Carefully read the case below, from your prescribed reading list, and answer the following
questions:
Joint Stock v Absa Bank 2008 (4) SA 287 (SCA)
The allocation of marks for this case discussion is as follows:
1. Facts of the Case
The appellant, Joint Stock Company Varvarinskoye, was responsible for establishing the
Varvarinskoye gold-copper mine and processing facilities in Kazakhstan.¹ It appointed MDM
Ferroman (Pty) Ltd as lead contractor under a FIDIC-based contract for US$55,744,623, with
MDM having the right to appoint subcontractors.²
Clause 14.4 was inserted as a protective mechanism to address the appellant's concern about
MDM's history of failing to pay subcontractors.³ The clause required that funds be deposited into
a designated account and could only be withdrawn upon joint signatures from MDM and
Investec Bank.⁴ Account 1313, held by the sixth respondent (Metallurgical Design &
Management (Pty) Ltd), an associated company of MDM, was used as a temporary warehouse
for these funds with Absa Bank.⁵
¹ Joint Stock Company Varvarinskoye v Absa Bank Ltd 2008 (4) SA 287 (SCA) para 4-5.
² Ibid para 8.
³ Ibid para 10-11.
⁴ Ibid para 11.
⁵ Ibid para 1, 13-14.
