Relying on vis major clause in a contract in times of COVID-19

Vis major clauses Many businesses will seek to rely on the enforcement of vis major clauses to relieve their performance of certain obligations resulting from the COVID-19 outbreak. The term vis major refers to an event or occurrence, which renders contractual performance impossible. These clauses allow a contracting party to escape the normal consequences of non-performance or late performance of contractual obligations because of …

What is a reasonable expectation of renewal?

An employee has been employed on a fixed-term employment contract for a number of years. Each consecutive year, the fixed contract is renewed at the election of the employer. After the fixed contract expired, the employer decides not to renew the employee’s contract. Is the employee entitled to a renewal of the fixed-term employment contract based on previous renewals? Section …

Freedom of Speech has its restrictions

Due to our controversial past, South Africa has been faced with a difficult task of eradicating all forms of racial animosity and behaviour. This is a problem we often find in the employment sphere as well, between the employer and the employee or between colleagues themselves. As part of its founding provisions, the Constitution states that the Republic of South …

Court interference in a contractual relationship

When two or more parties enter into a contractual agreement knowingly and free from duress, the terms of the agreement must be upheld by each signatory. However, it must be noted when the contract is entered into under pacta sunt servanda, which means “agreements must be kept”, principles of fairness, good faith and reasonableness don’t play a part when circumstances …