International news: lender Wonga sent fake law firms’ letters threatening its customers
England and Wales Law Society said reports that payday lender Wonga issued letters from fake law firms were alarming. They urged the public to verify credentials when approached by what appear to be professionals. Read the full article here.. Read More
The “one-pager” and the “cut-and-paste” demon
Contracting parties often misunderstand comprehensive- and well drafted contracts to be expensive and unnecessary, believing that the notorious “one-pager” is as effective.
Legal practitioners are regularly confronted with such requests, or are mandated to deal with contracts previously properly drafted by a lawyer, but which have subsequently been mutated by the “cut-and-paste” demon into a document brimming with now irrelevant legalize and most of the essentialia of the contract missing. In short: litigation paradise!
The main problems of these contracts are that they do not properly reflect the true intention of the parties and material terms of the contract are inevitably omitted... Read More
TimesLive: “Cele to fight JZ firing despite new post”
Andile Khoza, senior director at Strauss Daly, told TimesLive recently that Bheki Cele’s appointment is a completely separate matter from President Zuma’s decision to dismiss him as national police commissioner. Cele was appointed on 1 June 2014 as the deputy minister of agriculture, forestry and fisheries.
Credit Amnesty: the New Regulations
There are 21 million credit active consumers in South Africa, of which 11 million are blacklisted at a credit bureau. As from the 1st of April 2014 an amendment to the National Credit Act 2005 will provide relief to consumers who are blacklisted and who are adversely affected by such blacklisting who have paid up the debt.
It is clear that the amendments to the National Credit Act 2005 in respect of credit amnesty have caused confusion, with some consumers believing a credit amnesty means you do not have to repay your debt... Read More
“Schemes of business” and the abuse of the Insolvency Act to stop legitimate sales in execution from proceeding
A property owner and mortgagor encounters financial difficulties and defaults on his monthly bond payments. The bank forecloses on the bond, the mortgagor (now a “debtor”) becomes overwhelmed and ignores the legal process instituted against him while he tries his best to overcome his financial woes.
After a few months, having received no further notices and under the impression that the bank has “given up”, the debtor receives a visit from the sheriff informing him that his house will be sold in execution... Read More
Residential Leases: Cancellation Penalties and the CPA
The introduction of the Consumer Protection Act (“CPA”) not only affected several of our established common law principles (caveat subscriptor; freedom to contract, the passing of the risk rule; the parol evidence rule and voetstoots clauses), but it is also responsible for a new thinking on residential leases.
One such important aspect is the restriction of the landlord’s remedies upon a tenant’s early termination of a residential lease concluded between natural persons. Previously an attempted early termination of a lease was regarded as a repudiation of the contract by the tenant, resulting in the landlord’s right to accept the repudiation, cancel the lease and claim damages from the tenant... Read More