Insights
Newsletter15 October 2024

Know Your Contract

Before you sign, check the parties, your duties, payment terms, exit clauses, liability and disputes. A short review now prevents costly disputes later.

Know Your Contract

Contracts are part of everyday life, from signing a lease to entering into a business deal. Too often, people rush to sign without fully understanding what they are agreeing to. In South Africa, once a contract is signed it is binding, and mistakes can be costly. Before you agree to the terms, it is worth pausing to check a few key points.

Correct parties

Make sure names, ID or company numbers and addresses are accurate.

Your duties

Understand exactly what you must do, by when, and what happens if you do not.

Their duties

Be clear on when you will be paid, what will be delivered, and how issues will be handled.

Payment terms

Check amounts, due dates, penalties and any price increase clauses.

Ending the contract

Know how to cancel, what notice is needed, and whether there are penalties.

Liability

Read limitation clauses carefully, as they may reduce your rights.

Disputes

Confirm that South African law applies and check where disputes must be resolved.

Ask Questions and Get Advice

If you are unsure, ask questions, propose changes or seek advice. A short review now can prevent long disputes later.

If you can, avoid signing someone else's standard contract. Rather have your own bespoke contracts prepared for you. This gives you more protection and can save you a lot of money that would otherwise be spent on reviewing agreements drafted in the other party's favour.

ContractsOperations

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