Contract law governs the law of agreements between parties. These agreements may be either oral or written. However, a written contract is a more reliable tool to prove in court if the need arises. Contract law not only deals with the drafting of contracts but also with their interpretation in the event of a dispute between the parties.
When drafting a contract, it is critical to pay close attention to creating a solid contract that regulates the terms of the parties' agreement. A contract is a legally binding agreement between parties, and if it is reduced to writing, it can be a powerful tool to enforce the rights and responsibilities of both parties. Therefore, it is crucial that both parties' desires and wishes are expressed in the contract in a concise and easy-to-understand manner.
It is important for any person signing a contract to understand exactly what they are signing. Under South African law, the person signing the contract must read and fully understand its contents. Before signing any contract, it is crucial to read and understand the contents fully. If one does not understand what they are signing, it is worthwhile to obtain advice on the contents to ensure their rights are adequately protected, and the contract they wish to sign is not unilaterally favourable.
It happens from time to time that parties dispute something agreed upon in a contract. Most of the time, parties seek Court deliberation when a party has breached the agreement in some way or form. In such cases, one or both parties may approach a court to adjudicate the matter and make an order that will be binding on them. Contracts are usually litigated when there is a breach, which in 90% of cases is non-payment by either party. Litigating on a written agreement is always swifter, and the outcome is less evidence being necessary. The outcome of such litigation is also more predictable, as the contract will likely regulate the issue that is being litigated on.
In certain circumstances, parties may choose to refer the matter to arbitration in an attempt to save costs. The Court or arbitrator will then consider the agreement and make a ruling that will be binding on both parties.
Our offices can assist you with the drafting, negotiation, or interpretation of contracts. We can also help if you need to issue summons or defend legal action based on a contract.
Contact Roberts Inc. today to assist with your legal contracts.