contracts and agreements
in South Africa
1.
Understand the Type of Contract
Contracts can cover many areas of life, for example:
Employment contracts.
Rental or lease agreements.
Loan or credit agreements.
Service contracts (e.g., cellphone, gym membership, insurance).
Business agreements (partnerships, suppliers, sales).
Always know exactly what type of contract you are signing and what obligations it creates.
2.
Key Elements Every Contract Should Have
Check that the contract contains the following essential elements:
Full names and details of all parties (ID numbers, addresses, company registration numbers).
Clear description of what is being agreed to (job description, rental property, services, or goods).
Duties and responsibilities of each party.
Payment details (amount, method, frequency, due dates).
Duration of the contract (fixed-term, open-ended, or renewable).
Termination conditions (how and when either party can cancel).
Dispute resolution clause (how problems will be handled – court, arbitration, mediation).
Signatures and dates from all parties.
3.
What to Check Before Signing
Before signing, go through the contract carefully:
Clarity of Terms
Are all terms written in plain language?
Avoid vague words like “reasonable” or “as needed” without explanation.
Correct Details
Make sure your name, ID number, address, and other personal details are correct.
Check that property addresses, job titles, or product descriptions are accurate.
Payment and Costs
Confirm the amount, due date, and method of payment.
Check for hidden costs, penalties, or extra charges.
Understand interest rates in loan or credit agreements.
Duration and Renewal
Check how long the contract lasts.
See if it renews automatically and under what conditions.
Know how much notice you must give to end it.
Termination Rules
Can you cancel early?
What penalties or fees apply if you do?
Are both parties treated fairly in terms of cancellation rights?
Your Obligations
Be clear on what you are agreeing to do or provide.
Make sure you can realistically meet these obligations.
Other Party’s Obligations
Check what the other person or company must provide.
Make sure timelines and quality standards are written clearly.
Dispute Handling
How will disagreements be resolved?
Is there an option for mediation or arbitration instead of expensive court cases?
Special Clauses
Look out for unusual or restrictive clauses, such as:
Non-compete clauses (stopping you from working elsewhere).
Confidentiality agreements (restricting what you can say).
Liability clauses (limiting their responsibility for damages).
Attachments and Fine Print
Check all annexures, schedules, or policies attached to the contract.
Make sure they are signed or initialled by both parties.
4.
Steps to Take Before Signing
Read the entire contract slowly and carefully.
Ask questions about anything unclear.
Request changes if terms are unfair.
Do not be afraid to take the contract home to review.
Consider getting legal advice if the contract involves significant money, property, or long-term obligations.
Never sign blank pages or incomplete documents.
Only sign when you are satisfied that everything is correct.
5.
After Signing
Keep a signed copy for your records.
Store it in a safe place.
Stick to your obligations to avoid breaching the contract.
If problems arise, use the dispute clause before considering legal action.