As lawyers, we continuously get confronted with agreements between parties that end in disaster. For some or other reason, people still believe that you can, and should do business on a handshake or the good old principle of: “My word is my bond”. But what if the parties understood the “word” differently.
It is a daily occurrence that clients will disagree on the exact content of their agreement, simply because they do not remember all the discussions years later.
And suddenly no one is sure whether that certain product was included in the transaction or not.
The South African law only require certain documents to be in writing. These are:
All sale agreements of immovable property. i.e Houses, farms, sectional titles etc
Suretyship agreements,
Credit agreements,
Ante nuptial (marriage) contracts,
Leases over ten years, and
Contracts for executionary donations,
These must be reduced to writing and signed by the parties to the contract, for it to be valid and compliant with our laws.
So, what are the elements of a valid, contract, whether oral or written:
A contract consists of an offer by the “seller” to the purchaser to buy goods or services, for an agreed price or fee. Details must be specific
A contract becomes binding when the seller accepts the offer.
There must be an intention to contract freely and voluntarily.
The person who wants to conclude a contract must also satisfy certain legal requirements:
So do yourself (and your lawyer) a favour, and rather reduce your agreements to writing and remove the possibility of a He Said, She Said court case, where a judge will have to decide who is the most truthful witness and what was the most likely agreement between you.
Get in touch with us to discuss how we can help you with your challenges