General Agreements

These are clauses that are pertinent to most agreements and should be included in them.

Stipulates that the debt is to be paid in installments at weekly or monthly intervals. This is subject to the National credit Act. If in default of the acknowledgement of debt notice must be sent in terms of Section 129 (1). See form 4.18

Requires a debtor to acknowledge the debt and to undertake to pay it by a specific date.

Provides the framework for an affidavit. If any annexures are attached to the affidavit they too must be initialled by the deponent, i.e. the person signing the affidavit, as well as the Commissioner of Oaths.

For persons not prepared to make an oath. In other respects similar to an Affidavit.

A simple agreement for alterations or additions. It makes no provision for escalation. Substantial specimen agreements are made available by the building industry which should be used for extensive works. The drawings and specifications are to be provided by the builder and signed by the parties and annexed to the agreement.

This is a warranty against malperformance which could be incorporated in the Agreement to Build (see above) if required.

An agreement between a supplier and a distributor which defines their rights and obligations relating to the distribution of the supplier's products. Reference should be made to the Maintenance and Promotion of Competition Act 96 of 1979 which enables the Minister of Trade and Industry to prevent restrictions of competition, e.g. by fixing prices, through publication of a notice in the Government Gazette. The Competition Board makes an initial report to the Minister who responds thereto. A franchising agreement also amounts to a distribution of products but it more properly refers to the licensing of a business system by a franchiser to a franchisee. It often involves the licensing of trademarks, copyright and patents, etc, and you are advised to consult an attorney since the drafting involved would differ in each instance and is beyond the scope of this publication.

The important general clauses for an agreement as set out in Form 1.1 should, where applicable, be added to this agreement.

Must be used with the consent of all relevant parties and authorises the termination of a contract.

Most useful to have on occasions after disputes have arisen.

Used when a party is required to indemnify another.

Used for the pledging of movable property. When a creditor has a claim against a debtor, he may wish to secure the debt by way of a pledge. Only movable property, as opposed to immovable property, can be pledged, because the pledgor must transfer possession to the pledgee. Immovable property is secured by means of a mortgage bond.

To be used when shares are pledged as security for a loan or debt.

Demands the shortfall after the sale of pledged property.

Notifies the pledgor of the pending sale of pledged property and gives the pledgor an opportunity to redeem the pledged property before it is sold.

Used to perform certain specific acts on behalf of the party giving the Power of Attorney. If a general Power of Attorney is required, it is suggested that a stationer be approached where comprehensive general Powers of Attorney tend to be stock-in-trade. A conveyancer should be consulted for the preparation of a Power of Attorney to transfer immovable property.

Similar to Form 1.22 except that here the proxy is irrevocable until a specified date.1 (ii) 2019 Edition

A revocable proxy is used when a shareholder wishes to appoint a particular person as a proxy to vote on his behalf at a meeting of shareholders.

Used when a third party undertakes to pay a debt if the debtor defaults. Our law attaches special significance to such documents and requires that they must be in writing and must be complete in all respects (e.g. the full name of the Debtor must be inserted) at the time it is signed, otherwise it is invalid. Section 6 of the General Law Amendment Act 50 of 1956 deals with formalities in respect of a suretyship. It states that no contract of suretyship entered into after the commencement of this Act shall be valid unless the terms thereof are embodied in a written document signed by or on behalf of the surety. The signing of a suretyship leaving blank spaces for later completion does not constitute compliance with said Section 6. This is a point regularly and successfully taken by evasive sureties to invalidate their obligations. Suspicious suretyships should be re-submitted for proper signature and completion. The full designation of juristic persons must be given e.g. (Pty) Ltd or cc.

A letter by a surety to a creditor to renounce the surety?s liability for the debtor?s future obligations. The renunciation may only be made when the suretyship does not specify a maximum amount of the obligation secured, i.e. where it is for a continuing obligation. It will also depend on the wording of the suretyship whether the surety can renounce his/her liability to the creditor.

A letter demanding payment from the surety.

Used where one party intends to release the other party from all its obligations.

Used by a contractor to waive his/her lien over property in respect of which he/she has provided material and/or labour.

Used where there is a mutual waiver of obligations towards each party.

Used by a creditor to waive specific obligations between the creditor and his debtor.