Take care when calling up a Construction Guarantee
Introduction Late last year the Supreme Court of Appeal handed down a decision which underscores the importance of complying strictly with the requirements for calling up a construction guarantee. Background Facts A property development company by the name of Hospitality Hotels (Pty) Ltd (“Hospitality”) in 2008 undertook the refurbishment of a hotel. The works included […]
More on Tenders
Introduction Usually tenders are attacked by an aggrieved tenderer who believes that the award made was wrong due to either procedural irregularities, corruption or otherwise. What is the position if the organ of State who made the award itself recognises that it acted wrongly in making the award? Can it correct its mistake? In December […]
The Renewal of Leases and Ubuntu
Leases sometimes contain a clause entitling the lessee to renew the lease at a rental to be agreed upon. It has long been established law that such a clause is unenforceable as it requires the parties to agree on the rental. A right of renewal is enforceable only if the rent is stated or is […]
A move towards Renewable Energy
Governments and businesses around the world are placing increasing value on the generation and use of renewable energy. As the South African regulatory environment changes to incentivise investment in technologies and initiatives which increase the use of renewable energy, new opportunities for business emerge. This circular explores some of the regulatory schemes which may influence […]
Green Paper on Land Reform
On 31 August 2011, the Department of Rural Development and Land Reform tabled the Green Paper on Land Reform. The Green Paper’s stated aim is to address the injustice of past discriminatory laws and the inadequacy of existing land reform legislation and policy. The Department of Rural Development and Land Reform proposes various measures to […]
Can an Arbitrator make an Award by Consent
Introduction It frequently happens in arbitrations that parties settle their disputes before the conclusion of the arbitration proceedings. In these circumstances it has often been the practice for the parties to ask the arbitrator to make an award by consent setting out the terms of the settlement between them. The question as to whether such […]
Promotion of Access to Information Act
With effect from 31 December 2011, all private bodies will be obliged to prepare a manual which complies with the Promotion of Access to Information Act. Private bodies include any individual or partnership which carries on a trade, business or profession and any juristic person (such as a trust, company or close corporation). The Promotion […]
Companies Act – Intercompany Loans
In Companies Act Circular Number 1, we pointed out that remuneration for directors for services as directors may only be paid in accordance with a special resolution approved by the shareholders within the previous two years. We also pointed out that companies may not make loans to directors unless: the loan has been approved by […]
Construction Guarantor Escapes
Introduction The Supreme Court of Appeal (“SCA”), towards the end of last year, dealt with an interesting case involving a JBCC construction guarantee.1 At issue was whether in the circumstances of the case the guarantor, Renasa Insurance Company Ltd (“Renasa”), was entitled to avoid liability under the guarantee vis-à-vis a claim by the employer. The […]
Contractor Cancels JBCC Contract
Introduction In the JBCC cancellation clause there is a provision to the effect that neither the employer nor the contractor can cancel the contract if at the time the party wishing to cancel is itself in breach of a material term of the contract. The old BIFSA White Form Contract had a similar provision which […]