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 […]
Consumer Protection – Regulations: Draft vs Final
The final regulations to the Consumer Protection Act 68 of 2008 (Consumer Protection Act), published on 1 April 2011 (Final Regulations), have changed the scope of some of the consumer rights which were regulated in the draft regulations published on 28 October 2010 (Draft Regulations). Whilst a full-scale comparison of old against new is beyond […]
Consumer Protection – Is Your Business ready for the CPA
The Consumer Protection Act, due to commence in full on 31 March 2011, will have a significant impact on the conduct of business in South Africa. The Act regulates the daily interactions between suppliers and consumers and imposes restrictions on the contents of agreements between them. In general terms, the Act applies to transactions within […]
New Law Protecting Farm Workers and Farm Occupiers
On 24 December 2010, the Minister of Rural Development & Land Reform ("Minister") published the draft Land Tenure Security Bill ("the Bill") and invited comment on the Bill within 60 days. The Bill aims to regulate the rights of persons who reside on farms, who work on farms, persons who are associated with them and […]
Professional Services Agreement – No Price No Pay?
INTRODUCTION If an engineer, architect, or any professional for that matter, agrees to do work for a client and there is no agreement on the remuneration payable, does that mean that the professional is not entitled to payment for any work done? This is the question that the KwaZulu-Natal High Court, Durban, had to answer […]
Land Buying Blues
A purchase and sale agreement in respect of immovable property is signed. The first question the conveyancer is likely to be asked is "How long will the transfer take?". The response to that question will be influenced inter alia by whether the purchasing entity needs to be formed. And thereby hangs part of this tale. […]
The Main Contractor is Liquidated: Can the Employer Cancel?
INTRODUCTION The liquidation of a company does not, save for certain exceptions which are not relevant to this discussion, terminate contracts to which the company is a party. Upon the grant of a final liquidation order in respect of a company, a state of affairs described as the concursus creditorum comes about. What this means […]
Engineers Beware
INTRODUCTION The Supreme Court of Appeal (SCA) has provided helpful guidance, albeit costly for the engineer concerned, relating to what will suffice as a notice by a Contractor of unforeseen adverse conditions. THE FACTS In 1996 Enviroserve decided to expand its waste disposal site in an area known as Aloes in Port Elizabeth by adding […]
Damage to Hired Plant
INTRODUCTION Towards the end of last year the Supreme Court of Appeal (“SCA”) reminded us of the basic principles governing the relationship between the owner and hirer of plant1. THE FACTS In June 2000 Mutual Construction Company (Tvl) (Pty) Ltd (“Mutual”) hired a CAT 769 articulated dump truck to Komati Dam Joint Venture (“the Joint […]