Contracts Attorney

A contract or written agreement is a legally binding document that outlines the terms and conditions agreed upon by two or more parties involved in a transaction or business deal. An agreement can be written or oral, but a written contract provides a more formal and easily enforceable record of the terms and conditions of an agreement. The purpose of a contract is to clearly identify the rights and obligations of each party. It is important that all parties involved fully understand the terms before signing the contract or agreement.

Only certain agreements have to be in writing to be enforceable but it is recommended that all important agreements be reduced to writing so as to reduce the probability of disputes.

A contracts attorney has experience not only in drafting contracts, but also in disputes, therefore the agreement can include aspects to avoid any disputes in future.

Contracts are essential for commercial purposes because they provide a record of the legally binding agreement between two or more parties involved in a commercial transaction. A commercial contract is a legal document that outlines the terms and conditions of a business transaction and it is crucial for protecting the interests of the parties involved.

Some of the reasons why contracts are important in commercial transactions in South Africa include:

Legal Protection
A contract provides legal protection for both parties by outlining the rights and obligations of each party. This helps to prevent disputes and ensures that both parties understand what is expected of them.

Clarity and Certainty
A well-drafted contract ensures that the terms and conditions of the transaction are clear and concise, leaving no room for ambiguity or misunderstandings.

Risk Management
Contracts help to manage risk by setting out the consequences of non-performance or breach of contract. This helps to minimise the risks associated with the transaction and provides a clear path for resolving disputes.

Compliance
Contracts ensure that parties comply with legal requirements and industry standards, reducing the risk of non-compliance and potential legal liability.

Enforceability
Contracts are legally binding and enforceable in South African courts. This means that if one party fails to fulfil its obligations under the contract, the other party can seek legal recourse to either cancel or enforce the contract and recover damages.

A business partnership or shareholders agreement are contracts which outline the terms and conditions of the business relationship between two or more individuals. The agreement sets out the rights and responsibilities of each partner/shareholder and provides a framework for the operation and management of the business.

The specific contents of a business agreement may vary depending on the nature of the business and the needs and objectives of the partners/shareholders. However, some common aspects that may be included in such agreements are:

Business Structure
This section outlines the type of business, the owners’ roles and responsibilities and the percentage of ownership each person has in the business.

Financial Provisions
This section covers financial aspects, including how profits and losses will be distributed among owners, how capital contributions will be made, and how the businesses’ financial records will be kept.

Decision-Making
This section sets out the process for decision-making within the business, including voting procedures and the delegation of authority to individuals.

Management
This section outlines how the business will be managed, including the appointment of managers, the role of each owner in management and the delegation of specific tasks and responsibilities.

Disputes
This section establishes the process for resolving disputes among owners, including mediation or arbitration procedures.

Termination and Exit
This section outlines the conditions under which the partnership may be terminated, including the death or withdrawal of a partner and the procedures for dividing assets and liabilities upon termination.

Death of a Owner
An agreement is essential in the event of a business partner’s death because it outlines how the business will be managed and what will happen to the deceased owner’s share of the business in the event of their death. Without a detailed agreement, the surviving owners may face uncertainty and disagreements over how to handle the situation, potentially leading to legal disputes and financial losses.

A contracts attorney focuses on the security and sustainability of the business while also taking into consideration the needs of the partners, employees etc. Therefore he/she takes all stakeholder’s legal interests into consideration when drafting business contracts.

Proving an oral agreement can be more challenging than proving a written agreement, as there is no physical evidence to reference and this may lead to disputes and litigation. However, there are several ways you can try to prove the existence of a oral agreement:

Witnesses
If there were witnesses to the oral agreement, they can provide testimony to support your claim. 

Emails or text messages
If you have any emails or text messages with the other party that reference the terms of the agreement, they can be used as evidence to support your claim.

Recording
If you have a recording of the conversation when the oral agreement was concluded, this may be used as evidence if it is admissible in court.

Conduct
If both parties have acted in a way that is consistent with the oral agreement, this can be used to support your claim.

Ultimately, the best way to prove an agreement is to have it documented with the guidance of a contracts attorney.

Please note that this is not an exhaustive list and there may be other types of legal contracts which exist in South Africa, depending on various frameworks, factors and requirements.

Sale of Goods Contracts
These involve the purchase and sale of goods or products.

Lease Agreements
These are used for renting or leasing property, such as houses, apartments or commercial spaces.

Service Contracts
Used to establish the terms and conditions of services rendered between a service provider and a client.

Partnership Agreements
To establish the terms and conditions of a partnership between two or more individuals or entities.

Loan Agreements
To establish the terms and conditions of a loan between a lender and a borrower.

Non-disclosure Agreements
Used to establish confidentiality between two or more parties.

Joint Venture Agreements
To establish the terms and conditions of a joint venture between two or more parties.

Agency Agreements
To determine the terms and conditions of an agency relationship between a principal and an agent.

Marriage agreements
Also known as prenuptial agreements or “prenups”, is a legal contract between two individuals who are planning to get married.

For more information on the many, various types of agreements in South Africa, speak to a contracts attorney for advice,  guidance and legal compliance.