In South Africa, a contract forms the basis of enforceable legal obligations and corresponding rights between two or more contracting parties. 

Khatija speaks about contracts under the South African landscape 

In broad terms an agreement is a mutual understanding or ‘meeting of minds’. It is an arrangement/understanding between or among two or more parties with intent to establish a legally enforceable relationship and obligation/s. 

Requirements for a Valid Contract:

• Consensus: Is the meeting of minds (agreement). 

  Consensus MUST relate to: 

The intended obligation meaning who must perform, to whom the performance be rendered to and the intention to be bound legally. 

The parties must be aware of their agreement!

• Capacity: For an agreement to be valid the parties must have legal capacity to act. Persons with limited capacity may contract with assistance, but those with no such capacity may not contract in their names at all. 

• Minors below 18 can still contract provided that if the contract obligates the minor then parental/legal guardian’s consent is required. 

• Legality: the agreement must be lawful – in other words, it cannot be prohibited by law.

• Security: the agreement must have definite or determinate content so that the commitments can be enforced.

• Possibility: the undertaken commitments must be performed, and have the capacity to be performed when the agreement is entered.

The NCA specifically renders credit agreements unlawful where contractual capacity is lacking. 

If you are considering entering into a contract/agreement, it is advisable to seek professional legal assistance. 

If you are interested in entering, or about to enter into a new contract, it is highly advisable to seek professional legal guidance. 

By enlisting the services of an attorney, you are ensuring that your contract is fair and protective of each party. 

By enlisting the services of an attorney to draft your contract, you are ensuring that contract is well drafted and it satisfies all the legal requirements from the onset. 

Contact our offices for all your tailored legal contract drafting. 

Our team is able to assist in setting up contracts and ensuring the legality of business agreements. Contact our offices to set up your appointment.