IRM1501
Assignment 2
DUE 19 September 2025
, Global & Local Investments Advisors (Pty) Ltd v Fouché
Citation: [2020] ZASCA 8; 2021 (1) SA 371 (SCA)
Court: Supreme Court of Appeal (South Africa)
Date of Judgment: 18 March 2020
1. Overview and Facts
In November 2015, Mr. Fouché entered into a formal agreement with Global & Local
Investments Advisors (referred to as "Global") to oversee his investment portfolio. This
agreement, known as an investment mandate, specified that any instructions to move
funds must be provided in writing—either by email or fax—and must include his actual
signature to be considered valid.
In August 2016, cybercriminals hacked into Mr. Fouché’s Gmail account. Between 15
and 24 August, these hackers sent multiple fake emails to Global, instructing them to
transfer a total of R804,000 from Mr. Fouché’s Investec Corporate Cash Manager
account. These emails, although appearing to come from Mr. Fouché’s address and
signed off with informal phrases such as “Regards, Nick,” did not include the required
handwritten or secure electronic signature.
Despite this, Global went ahead and transferred the requested funds in three
payments—R100,000, R375,000, and R329,000—to various FNB accounts based
solely on the email instructions.
Once Mr. Fouché discovered the transfers, he immediately notified Global that he had
not authorised them and insisted that the company return the full amount. He claimed
Global had violated the terms of the agreement by acting on instructions that were
neither signed nor verified.
Assignment 2
DUE 19 September 2025
, Global & Local Investments Advisors (Pty) Ltd v Fouché
Citation: [2020] ZASCA 8; 2021 (1) SA 371 (SCA)
Court: Supreme Court of Appeal (South Africa)
Date of Judgment: 18 March 2020
1. Overview and Facts
In November 2015, Mr. Fouché entered into a formal agreement with Global & Local
Investments Advisors (referred to as "Global") to oversee his investment portfolio. This
agreement, known as an investment mandate, specified that any instructions to move
funds must be provided in writing—either by email or fax—and must include his actual
signature to be considered valid.
In August 2016, cybercriminals hacked into Mr. Fouché’s Gmail account. Between 15
and 24 August, these hackers sent multiple fake emails to Global, instructing them to
transfer a total of R804,000 from Mr. Fouché’s Investec Corporate Cash Manager
account. These emails, although appearing to come from Mr. Fouché’s address and
signed off with informal phrases such as “Regards, Nick,” did not include the required
handwritten or secure electronic signature.
Despite this, Global went ahead and transferred the requested funds in three
payments—R100,000, R375,000, and R329,000—to various FNB accounts based
solely on the email instructions.
Once Mr. Fouché discovered the transfers, he immediately notified Global that he had
not authorised them and insisted that the company return the full amount. He claimed
Global had violated the terms of the agreement by acting on instructions that were
neither signed nor verified.
