Levy v Katz [1914] ZAWLD 22 (25 August 1914)

Contract. - Illegality. - Promissory notes. -Recovery. Englisk exceptions to general Rule.-Less guilty party.-Contract not evecuted.

Where plaintiff gave promissory notes to defendant in terms of a fraudulent agreement,, he was held not entitled to recover them, or to restrain the defendant
from parting with them, though the defendant might negotiate them to bona fide holders and so obtain payment, as to grant the relief claimed would enablethe plaintiff to reap the benefit of his fraud.
Two exceptions inter alia, are recognised in the English law, to the rule that partiesto a fraudulent agreement cannot sue upon it, (1) That the less guilty party may recover, (2) That either party may recover where the transaction has not been completed. Assuming that these exceptions are in force in the RomanDutch Law, Held, that the first exception applies only where there has been, oppression or extortion, ·and does not cover the case of a voluntary purch~.ser,and that the second exception applies only where the person en~ering upon thetransaction
has repented and desires to annul it, and does not cover a purchaser who wants to retain his purchase and also recoyer what he has paid',for it.