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TransNamib takes Alliance Media to court for breach of contract

TransNamib takes Alliance Media to court for breach of contract

Samuel Shinedima

STATE-OWNED enterprise TransNamib Holdings (PTY) Ltd has filed a case against outdoor advertising company Alliance Media for breach of contract.

The SEO stated a contract signed between the two companies was terminated and that Alliance Media is currently unlawfully occupying the premises and erecting signage on the premises.

The SOE seeks an order for the removal of all signage and advertising images from its premises as well as for the premises to be restored to the condition it was before concluding the agreement it signed with Alliance Media.

COURT: Alliance Media Holdings (PTY).Photo: LinkedIn

TransNamib and Alliance Media entered into an exclusive concession rights for outdoor advertising agreement in 2013 that obliges Alliance Media to pay N$5 100 000 as the minimum license rental fee for five years, from 1 March 2013 to 29 February 2018.
This agreement was allegedly later extended until February 2022.

TransNamib stated that Alliance Media is contractually obliged to pay 45% of the net advertising revenue. If the advertising revenue is less than N$255 000, then no further payment shall be required.

The contract also made a provision for Alliance Media to provide statements reflecting sales and the net advertising revenue.

TransNamib argues that Alliance Media is in breach of the signed agreement by refusing or failing to provide a sales statement that indicates the net advertising revenue.

Alliance Media has, according to TransNamib, also failed to honour a payment of an unknown amount, subject to the 45% payment on the net advertising revenue.

The company approached the court to declare the exclusive concession rights for outdoor advertising to be cancelled.

TransNamib seeks an order compelling Alliance Media to remove all its signage and apparatus within 30 days of the order.

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