Added Legal Value Newsletter Volume 2 Number 1

April 2009

Special news on contract

What a year this is turning out to be, with the changing face of the Law of Contract in South Africa. 

As commercial drafters in the country are starting feel the full effect of consumer legislation such as the National Credit Act 34, 2005, Family Law  expansion brought about by the Civil Union Act 17, 2006 and the Children's Act 38, 2005, the repeal of a host of statutory created organization acts, The repeal of tax legislation such as the Stamp Duties Act 77, 1968, important amendments to the current Companies Act 61, 1973 and other developments, we are now preparing for the Consumer Protection Act 68, 2008 and a new Companies Act.

Against this backdrop, we have been commissioned to present a seminar under the topic Contracts Update 2009.  It will be presented by the Law Society of South Africa, Legal Education and Development ‹L.E.A.D› in different centres throughout the country and will be conducted in the form of a workshop.  In the interests of sharing information, we will make the slides to these lectures available  on our website in easy printable format.

Three in two

In the last two years, we have litigated in at least three legal precedent setting cases ‹one on contract, one on execution and the Constitutional Right to Housing and one on Possession and the Law of Property› which have been reported in the Law reports of South Africa.  At present we are conducting a further matter which has the potential of being decisive on the interpretation of section 228 of the Companies Act 61, 1973.  whether the outcome will be reported in the law reports, remains to be seen.  For details on these, you are welcome to contact us at eb@tiscali.co.za.

The law on franchising is changing

Our previous newsletter on this aspect will have to be read subject to the developments set out in the Consumer Protection Act 68, 2008 which will make consumers of Franchisees and protect them as such.

Credit agreements

Please remember that the Usury Act has been repealed and that maximum interest rates and initiation fees are now determined in the National Credit Act 34, 2005.  The interest rates depend on the type of credit agreement involved and the repurchase rate ‹RR› determined from time to time by the South African Reserve Bank. 

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