A court can issue an order placing a company in business rescue if it is shown that the company has reasonable prospects of being restored to a continued solvent existence or of achieving a better return for creditors and shareholders than would result from immediate liquidation. The supreme court of appeal made this finding in
An intermediary for the purposes of the FAIS Act and the Short-term Insurance Act is someone who acts as a go-between interposed between a client and product supplier whose acts directly result in a financial transaction, for instance a policy, being entered into. That means that someone supplying leads that may indirectly result in a
A clause in a contract requiring the parties to refer their disputes to arbitration is not necessarily enforceable if the contract itself is invalid. Every arbitration clause should be coupled with a provision that the validity of the agreement may be determined by arbitration even though the existence of the agreement itself is being questioned.
Most definition clauses do (and should) start with the words “subject to the context” and these words are important when applying a definition.
The supreme court of appeal said that definitions in an enactment (in this case a by-law) should not be slavishly applied. Where the context requires it, the ordinary meaning of a word
Even if a minor enters into a contract with the assistance of a guardian, the contract may be set aside if it is shown that it was materially prejudicial to the minor at the time it was concluded.
Courts are hesitant to set aside contracts especially if they are settlement or compromise agreements.
Contract may
The nature of bank notes is not often discussed and it plays an increasingly limited role in financial transactions. In the hope of avoiding a revised valued-added tax assessment, a litigant made some imaginative submissions about the nature of bank notes in Master Currency v CSARS.
The business of the litigant sold foreign currency
The supreme court of appeal in Oakdene Square Properties v Farm Bothasfontein (Kyalami) gave some useful guidance about what should be in a business rescue application:
When you agree to an arbitration clause in an agreement bear in mind that the arbitration award, whether you like it or not, is likely to be the final word. The guiding principle of an agreed arbitration is finality – right or wrong.
The arbitration agreement must provide for the right of appeal if the