BFFs no More: The Verbal Agreement That Cost R1 Million
“My word is my bond.” (Once the motto of 16th-century merchants, adopted by ’90s hip-hop artists, and now tossed around by duelling politicians) Many people are unaware that there are just a few types of agreement that are valid only if recorded in writing and signed – most notably contracts for the sale, exchange, or […]
Gift or Loan? A Cautionary Tale for the Season of Giving
“The bluntest pencil is better than the sharpest mind” (Unknown) The Festive Season is traditionally a time for giving, and it seems a pity to have to mention the hard realities of the law right now. But, as a recent High Court dispute confirms, things can go horribly wrong if the people involved have different […]
Contracting with Trusts – Is a Majority Resolution Valid?
“Externally, trustees cannot disagree. In the external sphere the Trust functions by virtue of its resolutions, which have to be supported by the full complement of the Trust body.” (Extract from judgment below) A recent Supreme Court of Appeal (SCA) judgment provides yet another reminder to tread carefully when contracting with trusts. Your agreements with […]
Can Your 👍Thumbs-Up Emoji or E-Signature Seal a Deal?
“…data messages or electronic signatures are now recognised in our law as equivalent to a proper basis upon which a written contract can be concluded. Thus, a valid written contract can be concluded electronically.” (Extract from the South African judgment below) ECTA (the Electronic Communications and Transactions Act) means that you can in many cases […]
Verbal Agreements – Not Much Good, But Lots of Bad and Ugly
“The Good, The Bad, and The Ugly” (Spaghetti Western, 1966) A common myth – one that can get you into a whole lot of trouble if you aren’t alive to it – is that verbal contracts are not legally enforceable in South Africa. The opposite is true. With very few exceptions, our law will hold […]