Contract Law Archives - Insights into The Law in South Africa

WhatsApp: A unique, convenient method of cancelling a contract?

The rapid rise in modern technology, the advent of smartphones as well as the increased popularity of social media and instant messaging services such as WhatsApp, have resulted in easier, effective, lightning quick communication between parties in addition …

Contingency fee arrangements: Clarifying the common law position

The Contingency Fees Act 66 of 1997 (“the CFA”) legitimises and regulates the conclusion of contingency fee arrangements between legal practitioners and their clients. The CFA prescribes certain formalities for the conclusion of a lawful contingency fee…

Topics: Commercial & Corporate Law | Contract Law | Dispute Resolution | Government, Politics & Policy | Running Your Practice

The nature of cession in security

The cession of incorporeal rights is a legal principle on which significant amounts of money are transacted in the South African market. Cession is a bilateral juristic act whereby the cedent transfers its rights to the cessionary. The cession can be constructed…

Topics: Commercial & Corporate Law | Contract Law | Dispute Resolution

Your email can legally bind you to a contract

One of the main aims of the Electronic Communications and Transactions Act 25 of 2002 (ECTA) is to promote legal certainty in respect of electronic communications and transactions. Section 13(3) of the ECTA states that: “Where an electronic signature is required…

Topics: Contract Law | Technology Law

Potential tax consequences of the waiver of a contractual right

The term ‘disposal’ is widely defined in section 11 of the Eighth Schedule to the Income Tax Act 58 of 1962 (“the Income Tax Act”), and includes the waiver of an asset. For purposes of donations tax, a donation is defined in section 55(1) of the ITA as “any gratuitous…

Topics: Contract Law | Tax Law

Flirting with co-branding – The considerations

At the supermarket a few days ago, I came across a pack of Stimorol chewing gum flavoured with Halls Menthol. I’m not an avid bubble gum-chewer, but being an ardent lover of Halls Menthol, I simply couldn’t resist buying a pack. Had it not been for the Halls Menthol…

Topics: Contract Law | Media & Entertainment Law

Property Law and Contract: Contractual Unfairness and the Constitution

In the recent as yet unreported case of Bondev Holdings Midrand (Pty) vs Mulatedzi Alton Madzhieand others delivered by Acting Judge CR Jansen on 19 December 2016 in the Gauteng High Court, important contractual issues in a constitutional perspective were…

Topics: Constitutional Law & Civil Rights | Contract Law | Insurance Law | Property Law

Advice for Start-Ups in Negotiating with Investors

Should you as a start-up (although this advice is applicable to any party in a contractual negotiation) find yourself negotiating with potential investors, you will most likely be presented with a term sheet, or even final transaction documents, which set out the…

Topics: Commercial & Corporate Law | Contract Law

Is There Still Place For Fixed-Term Contracts In The Construction Industry?

Can a construction contractor automatically terminate its employees’ contracts when skills are no longer required for a construction project? This question was at the centre of the Labour Court case of National Union of Mineworkers obo Milisa and Others v WBHO…

Topics: Construction & Engineering Law | Contract Law | Dispute Resolution | Labour Law

Liability for Special Levies

This article examines the legal issue of whether the purchaser or seller of an immovable property is responsible for the payment of special levies raised by the body corporate or the home owners association concerned before transfer occurs. Basic Context When a …

Topics: Contract Law | Property Law

Inland And Coastal Refineries And The Cost Of Transporting Oil – Transnet v Total

The recent Supreme Court of Appeal (“SCA”) case of Transnet v Total is important not only for those in the petroleum industry, but also, more generally, when it comes to aspects of competition and discrimination, as well as the impact of changes in the law …

Nobel Economics Prize Awarded for Work on Contract Theory

On the 10th of October 2016, British-American Oliver Hart and Finnish Bengt Holmström were awarded the Nobel economics prize (including $922 000) for their transformative work on contract theory. According to the Nobel jury, the professors developed theoretical…

Topics: Contract Law

The Position Of Non-Citizens In Employment Agreements

In order to encourage the employment of ‘professionals’ in Mauritius, the Immigration Act was amended by the Business Facilitation (Miscellaneous Provisions) Act 2006 to provide for a quicker process for the employment of ‘professionals’ with a monthly…

Topics: Contract Law | Labour Law

How To Cancel A Residential Lease

Introduction There are a number of different laws that impact on residential leases. This article explores those relevant to the cancellation of a residential lease, and explains the proper procedure to be followed when terminating a residential…

Topics: Consumer Protection | Contract Law | Property Law

Release Of Cargo By Shipping Lines – Importance Of Original Bills

The vast majority of trade continues to take place by way of ocean transport and in this context one of the more vital documents will often be a bill of lading. Bills of lading have been used for the carriage of goods by sea for centuries and have come to be regarded as mystical…

Topics: Contract Law | Shipping & Aviation Law

Defaulting On Loan Agreement Instalments: When Does A Creditor’s Claim Prescribe?

Acceleration clauses are commonly found in loan agreements that require debtors to make repayment in instalments. A standard acceleration clause provides that if a debtor fails to pay an instalment, the creditor may elect to terminate the loan agreement and demand…

Topics: Contract Law

SABC Judgment Raises Important Employment Law Issues

During the last two days, the Labour Court judgment in the matter of Solidarity and Others v The South African Broadcasting Corporation (“SABC”) (case no. J 1343/16, 26 July 2016) has been widely publicised and is well-known to South Africans. The judgment relates…

Topics: Contract Law | Labour Law

Settlement Agreements: Final & Binding

In the matter of Eke v Parsons 2015 (11) BCLR 1319 (CC); 2016 (3) SA 37 (CC), Parsons applied for summary judgment for payment of money owing in terms of a sale agreement. On the morning of the hearing, the parties agreed to settle with the summary judgment application…

Topics: Contract Law

The Case Of The Unconditional Guarantee That Wasn’t

When the wording of a construction-related guarantee is ambiguous, the intention of the parties involved is key in determining its true nature. This was highlighted in a recent Supreme Court of Appeal (“SCA”) judgment, which found that the best way to determine…

Topics: Commercial & Corporate Law | Construction & Engineering Law | Contract Law | Dispute Resolution

Brexit | Implications For South Africans’ Contracts?

The United Kingdom has voted to leave the European Union. Will this have implications for contracts between South African businesses and parties in the UK or the EU? It should be noted that nothing has changed yet. The UK must still formally exit the EU. In the meantime,…

Topics: Commercial & Corporate Law | Contract Law

Contract Law

WhatsApp: A unique, convenient method of cancelling a contract?

Contingency fee arrangements: Clarifying the common law position

The nature of cession in security

Your email can legally bind you to a contract

Potential tax consequences of the waiver of a contractual right

Flirting with co-branding – The considerations

Property Law and Contract: Contractual Unfairness and the Constitution

Advice for Start-Ups in Negotiating with Investors

Is There Still Place For Fixed-Term Contracts In The Construction Industry?

Liability for Special Levies

Inland And Coastal Refineries And The Cost Of Transporting Oil – Transnet v Total

Nobel Economics Prize Awarded for Work on Contract Theory

The Position Of Non-Citizens In Employment Agreements

How To Cancel A Residential Lease

Release Of Cargo By Shipping Lines – Importance Of Original Bills

Defaulting On Loan Agreement Instalments: When Does A Creditor’s Claim Prescribe?

SABC Judgment Raises Important Employment Law Issues

Settlement Agreements: Final & Binding

The Case Of The Unconditional Guarantee That Wasn’t

Brexit | Implications For South Africans’ Contracts?

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