The “Frequently Asked Questions” document was misleading and may have constituted a misrepresentation.  However, the respondent did not plead misrepresentation and neither did he seek rectification of the agreement.

Air Traffic and Navigation Services Co v Esterhuizen (668/2013) [2014] ZASCA 138; [2014] JOL 32338 (SCA) (25 September 2014) at paras 21 and 22 per Theron JA [Lewis, Tshiqi, Wallis JJA and Fourie AJA concurring]

Excerpts without footnotes

[21]  Finally, it was contended by the respondent that, at all material times during the negotiation and conclusion of the retention agreement, it was agreed between the parties that should the respondent resign before the expiry of the fixed term, he would only be liable for repayment of the retention payments he had actually received.

In support of this contention he relied on a document prepared by the appellant, titled “ATNS Retention Frequently Asked Questions”, dated 16 March 2007.  The evidence was to the effect that prior to the introduction of the retention scheme, employees, including the respondent, had certain concerns regarding the operation of the scheme.

The appellant subsequently prepared the “Frequently Asked Questions” document.  One of the questions recorded in the document was, “What happens if I breach the retention agreement?” The recorded answer was: “If you [breach] the retention agreement you will be required to pay back all monies earned as a result of your participation in the retention scheme.”

[22]  Mr Pieter Marais, called as a witness by the appellant, testified that the question and answer document had been distributed prior to finalisation of the contract and a consultative process was followed whereby the proposed standard agreement underwent several changes, based on input received from employees and the trade union.  The respondent signed the retention agreement on 10 April 2007 and that was the only contract that came into existence between the parties.  It is trite that when a person signs an agreement, he or she is taken to be bound by the ordinary meaning and effect of the words which appear above his or her signature (caveat subscriptor).  The “Frequently Asked Questions” document was misleading and may have constituted a misrepresentation.  However, the respondent did not plead misrepresentation and neither did he seek rectification of the agreement.