LML4807
ASSIGNMENT 1 (SEMESTER 2)
DUE DATE: 9 September 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than September 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1
Durr v ABSA Bank and Another 1997 (3) SA 448 (SCA)
The case of Durr v ABSA Bank and Another revolves around Mr. Durr, an investor who purchased
shares in an unlisted company based on advice from ABSA Bank. The bank’s representative assured
Mr. Durr that the investment was sound and emphasized the high returns he could expect. However,
the investment turned out to be a poor one, resulting in significant financial loss for Mr. Durr. He
claimed that the bank's advice was negligent and that the bank had failed to disclose essential
information about the risks associated with the investment. Mr. Durr contended that the bank’s
representative had overemphasized the potential returns and downplayed or omitted the risks.
Consequently, Mr. Durr sought damages for the losses incurred, arguing that the bank’s negligent
misrepresentation led him to make an uninformed and detrimental investment decision.
The Legal Issues Before the Court
The primary legal issue in this case was whether ABSA Bank, through its representative, had acted
negligently in advising Mr. Durr to invest in the unlisted shares, thereby causing him financial loss.
The court needed to determine if the bank owed a duty of care to Mr. Durr and, if so, whether there
ASSIGNMENT 1 (SEMESTER 2)
DUE DATE: 9 September 2024
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than September 2024. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1
Durr v ABSA Bank and Another 1997 (3) SA 448 (SCA)
The case of Durr v ABSA Bank and Another revolves around Mr. Durr, an investor who purchased
shares in an unlisted company based on advice from ABSA Bank. The bank’s representative assured
Mr. Durr that the investment was sound and emphasized the high returns he could expect. However,
the investment turned out to be a poor one, resulting in significant financial loss for Mr. Durr. He
claimed that the bank's advice was negligent and that the bank had failed to disclose essential
information about the risks associated with the investment. Mr. Durr contended that the bank’s
representative had overemphasized the potential returns and downplayed or omitted the risks.
Consequently, Mr. Durr sought damages for the losses incurred, arguing that the bank’s negligent
misrepresentation led him to make an uninformed and detrimental investment decision.
The Legal Issues Before the Court
The primary legal issue in this case was whether ABSA Bank, through its representative, had acted
negligently in advising Mr. Durr to invest in the unlisted shares, thereby causing him financial loss.
The court needed to determine if the bank owed a duty of care to Mr. Durr and, if so, whether there
