Author: Wolmarans Attorney

Categories
Contract Law

Terminating a Fixed Term Contract

A fixed term commercial contract is a type of contract that is entered into for a specific period of time and is used in business transactions. At the end of the fixed term, the contract will come to an end, unless it is renewed. In South Africa, the process of terminating a fixed term commercial contract is governed by the common law, the contract itself and the Consumer Protection Act (CPA) of 2008.

A fixed-term contract may not exceed a period of 24 months. When a fixed-term commercial contract comes to an end, it will automatically terminate unless the parties agree to renew it. The parties are not obliged to renew the contract and the other party is not entitled to renew the contract.

The parties may also terminate the fixed term contract before the end of the fixed term, by giving the other party 20 days’ written notice. The notified may in this case impose a reasonable cancellation penalty in respect of the time which is still remaining in terms of the agreement.

A party may also cancel an agreement after giving the defaulting party 20 business days’ notice in writing, in the case of a material failure by the defaulting party to comply with the terms of the agreement, unless they have rectified the failure within the 20 days’ notice. In other words, if the defaulting party rectifies the complaint by the supplier within the 20 days’ notice period, the notifying party can no longer cancel the agreement. 

The Consumer Protection Act (CPA) also provides protections for consumers in case of fixed term commercial contracts. For example, if a consumer is entered into a fixed term contract, the supplier may not automatically renew the contract without the consumer’s explicit consent. Additionally, the CPA also provides for cooling-off periods, which allow consumers to cancel certain types of contracts within a certain period of time after they have been entered into.

It is important to note that when a fixed term commercial contract is terminated, the parties must abide by the terms of the contract, including any termination provisions, and they should also be aware of their rights under the Consumer Protection Act.

If you are facing a situation where your fixed-term commercial contract is being terminated and need legal help, please contact Wolmarans Attorneys. We can provide you with expert advice and representation to help ensure that your rights are protected and that you receive fair compensation.

*Please note that this post is for informational purposes only and does not constitute legal advice. 

Categories
Family Law

Best Interest of the Child Standard

The “best interest of the child” standard is a legal principle that is used to guide decision-making in matters involving children. It is based on the idea that the well-being and welfare of the child should be the primary concern in any legal proceeding that affects them.

In South Africa, the best interest of the child standard is governed by the Children’s Act of 2005. The act sets out the principle that the child’s best interest should be of paramount importance in all matters concerning the child. This includes matters such as care, contact, and adoption.

The courts use a standard test to determine what the best interest of the child is. This test involves considering a number of different factors, including the child’s age, health, and emotional and psychological needs. The court will also take into account the child’s relationship with their parents and other significant people in their life, as well as the child’s own views and preferences.

When determining primary care, the court will consider the child’s physical, emotional, and educational needs and the capacity of each parent to meet those needs. The court will also consider the nature of the relationship between the child and each parent, and any history of abuse, neglect or domestic violence.

The best interest of the child standard is an important principle that ensures that the rights and welfare of children are protected in legal proceedings. It is a principle that is applied in all matters involving children, and it is important that parents and other individuals who are involved in legal proceedings involving children are aware of it.

If you are involved in a legal proceeding that affects the welfare of a child and need legal help, please contact Wolmarans Attorneys. We can provide you with expert advice and representation to help ensure that the best interest of the child is protected.

*Please note that this post is for informational purposes only and does not constitute legal advice.

Categories
Commercial Law

Piercing the Corporate Veil

Piercing the corporate veil is a legal concept that refers to holding the individuals behind a company liable for the company’s actions or debts. In other words, it allows the court to look past the legal “veil” of the company and hold the individuals who control it responsible for its actions.

In South Africa, the concept of piercing the corporate veil is governed by the Companies Act of 2008. Section 20(9) of the Companies Act enables a court to disregard the separate legal personality of a company when there has been an “unconscionable abuse of the juristic personality of a company as a separate entity”. The act sets out certain conditions that must be met in order for the court to pierce the corporate veil. These include showing that the company was used as a vehicle to commit fraud or other illegal acts, or that the company was not adequately capitalized.

One of the most important factors that courts consider when deciding whether to pierce the corporate veil is the degree of control that the individuals behind the company have over its operations. If the individuals are found to have complete control over the company and its actions, it is more likely that the court will pierce the corporate veil and hold them liable for the company’s debts or illegal acts.

The concept of piercing the corporate veil is an important one, as it helps to ensure that individuals who use companies as a way to evade responsibility for their actions are held accountable. It is particularly important in South Africa, where the legal system is designed to protect the rights of individuals and ensure that they are not taken advantage of.

Please note that this post is for informational purposes only and does not constitute legal advice. If you are facing a legal situation and need assistance, please contact Wolmarans Attorneys. We can provide you with expert advice and representation to help protect your rights and interests.