, IRM1501 Assignment 2
Semester 2 2025 (860058)
DUE 15 September 2025
Use this document as a guide and for references to answer your assignment
2 answers provided
Global & Local Investments Advisors (Pty) Ltd v Fouché (71/2019)
[2020] ZASCA 8 (18 March 2020)
1. Facts
In November 2015, Mr Nickolaus Ludick Fouché (―the Respondent‖) engaged
Global & Local Investments Advisors (Pty) Ltd (―Global & Local‖ or ―the
Appellant‖), a financial services provider, to invest and manage funds on his
behalf.
The written mandate stipulated that all instructions had to be sent by fax to a
specified number or by email to a specified address, with the client’s signature
attached.
Global opened and managed a Corporate Cash Manager (CCM) account at Investec
Bank in Fouché’s name.
In August 2016, fraudsters hacked Fouché’s Gmail account and sent three emails
on 15, 18 and 24 August, purportedly from him, instructing Global to transfer sums
totaling R804,000 to third-party bank accounts. Each email ended with ―Regards,
Nick‖ or ―Thanks, Nick‖ and had no attachments.
Global complied and transferred R100,000, R375,000, and R329,000 respectively.
Fouché later notified them that he had not sent those emails and demanded
reimbursement.
The High Court (Gauteng Division, Vorster AJ) found that Global had breached
the mandate by transferring funds without a valid signature and ordered repayment
and costs in favour of Fouché.
Semester 2 2025 (860058)
DUE 15 September 2025
Use this document as a guide and for references to answer your assignment
2 answers provided
Global & Local Investments Advisors (Pty) Ltd v Fouché (71/2019)
[2020] ZASCA 8 (18 March 2020)
1. Facts
In November 2015, Mr Nickolaus Ludick Fouché (―the Respondent‖) engaged
Global & Local Investments Advisors (Pty) Ltd (―Global & Local‖ or ―the
Appellant‖), a financial services provider, to invest and manage funds on his
behalf.
The written mandate stipulated that all instructions had to be sent by fax to a
specified number or by email to a specified address, with the client’s signature
attached.
Global opened and managed a Corporate Cash Manager (CCM) account at Investec
Bank in Fouché’s name.
In August 2016, fraudsters hacked Fouché’s Gmail account and sent three emails
on 15, 18 and 24 August, purportedly from him, instructing Global to transfer sums
totaling R804,000 to third-party bank accounts. Each email ended with ―Regards,
Nick‖ or ―Thanks, Nick‖ and had no attachments.
Global complied and transferred R100,000, R375,000, and R329,000 respectively.
Fouché later notified them that he had not sent those emails and demanded
reimbursement.
The High Court (Gauteng Division, Vorster AJ) found that Global had breached
the mandate by transferring funds without a valid signature and ordered repayment
and costs in favour of Fouché.
