COMMERCIAL LAW 2 B WORKSHOP JULY 2017 FACILITATOR

COMMERCIAL LAW 2 B WORKSHOP JULY 2017

FACILITATOR • Andrew Tucker • B. Com LLB • Attorney of the High Court of South Africa • andrew. tucker 46@gmail. com

RESOURCES • www. letslearnmore. weebly. com

OTHER RESOURCES • www. saflii. org. za • www. gov. za • www. cipc. co. za • www. dti. gov. za

BUSINESS ENTERPRISES IN SA • Sole trader • Partnership • Close corporation • Company • Trust

SOME PRINCIPLES • Perpetual succession • Limited liability • Separation of ownership and control

COMPANIES ACT 71 OF 2008 • Replaced 1973 Act • Modernised • Simplified • Improved governance

CATEGORIES OF COMPANY • Profit company • Non-profit company (NPC) • External Company • Domesticated company

PROFIT COMPANIES • State owned – SOC • Private – (Pty) Ltd • Public – Limited • Personal Liability - Inc

NON PROFIT ASSOCIATIONS • Incorporated Associations • Non-incorporated

CONTRACTS • Remember…. . • All contracts are agreements but not all agreements are contracts

REAL AND PERSONAL RIGHTS REAL RIGHTS • Object is a real, tangible thing • Affords direct power over object • Real right is absolute, enforceable against all – hot pursuit • Doesn’t lapse on death PERSONAL RIGHTS • (Object is) Personal security, bodily integrity, freedom • Not absolute – only enforceable against a specific person • Lapse when holder dies

REQUIREMENTS OF A VALID CONTRACT • Consensus • Physical possibility • Lawfulness • Contractual capacity • Compliance with formalities • Certainty

VALID, VOID & VOIDABLE • Valid – correct in all respects • Void – (ab initio) – no contract • Voidable – contract exists but (may) be set aside

CONSENSUS • A meeting of the minds • Serious intention • Offer and acceptance – see rules on pages 31 and 32 • Lapsing of an offer

CONTRACTUAL CAPACITY • Minors • Mentally insane • Intoxication • Progigals • Insolvency

FORMALITIES • General rule – no formalities • Parties or the law may prescribe • Eg: sale of land must be in writing & registered at Deeds Office

LAWFULNESS • Must not be in contravention of legislation or the common law (contra bones mores) • Ex turpi causa rule

PHYSICAL POSSIBILITY • Initial possibility – contract void • Supervening impossibility • Vis major o– Act of God • Causus fortuitis – Unforseen & beyond control • Objective and subjective impossibility

CERTAINTY • Must not be so vague as to render uncertain • Unlimited options • Vague language • Unspecified details

OTHER FACTORS • Mistake – page 42 • Misrepresentation – page 43 • Duress – page 44 • Undue influence – pages 44 -45

TYPES OF BREACH • Mora debitoris • Mora creditoris • Positive malperformance • Repudiation • Prevention of performance

REMEDIES FOR BREACH • Specific performance • Reduced performance • Damages • Cancellation • Interdict

DAMAGES • Only patrimonial damages may be claimed for contractual loss • Prove • Loss a direct & natural consequence of the breach • Loss must have been foreseeable (not too remote) • Loss must be measurable in money

EMPLOYMENT CONTRACTS LOCATIO CONDUCTIO OPERARUM LOCATIO CONDUCTIO OPERIS • Letting and hiring of services • Letting and hiring of work • Normal employment contract • Independent contractor • Services at disposal of employer • Perform specific task • Under control of employer • Law of contract • Protected by labour laws • Not under employers control

EMPLOYMENT CONTRACTS • BCEA specifies essentials to be covered • Normally would include things like: • Working hours • Leave • Fringe benefits • Remuneration etc…. .

TERMINATION OF EMPLOYMENT • By employer • misconduct, operational requirements, incapacity • By Employee • Resignation • By agreement • Retirement, end of fixed term, voluntary separation

FRANCHISING • Product & trademark or trade name franchising • Business format franchising

REGULATION • No specific legislation, but • Consumer Protection Act • Trade Marks Act • Competition Act • FASA – voluntary industry body • Draft Code of Conduct published for comment

CONSUMER PROTECTION ACT