South Africa: Legal Environment

Business Contract

General Observation: You must be particularly vigilant about the terms of the contract and the methods of conflict resolution. In fact, South Africa is not a signatory to the Vienna Convention on International Contracts.
Law Applicable to the Contract: The South African law of contract is in many respects similar to the English common law. There is no requirement that each party should give a consideration in order to form a binding contract. The basis of the contract in South African law is offer and acceptance.
Advisable Incoterms: Choose FOB or CIF, or more. When importing, avoid EXW if you do not want to be involved in organizing domestic transport in South Africa , as it could be complex at times.
Language of Domestic Contract: English, Afrikaans
Other Laws Which Can Be Used in Domestic Contracts: Consumer legislation could be used to prescribe or limit the provisions of a business contract.

The terms of a contract may be tested against the provisions of the Bill of Rights. Provisions which significantly infringe certain basic human rights may be void.

National Organisations: The national organisation for the protection of trademarks and patents is the CIPC (Companies and Intellectual Property Commission).
The South African Institute of Intellectual Property Law is another organisation.
South Africa signed the Paris Convention for the protection of industrial roperty, as well as the agreement establishing the World Intellectual Property Organisation (WIPO).
Regional Organisations: African Regional Intellectual Property Organisation (ARIPO)
International Membership: Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property

Type of property and law	Validity	International Agreements Signed
Patent Patents Act, 1978.	20 years	Patent Cooperation Treaty (PCT)
Trademark Trade Marks Act, 1993.	10 years	Trademark Law Treaty
Design South African Designs Act 195 of 1993	Aesthetic design: 15 years, Functional design:10 years
Copyright Copyright Act of 1978	50 years	Berne convention For the Protection of Literary and Artistic Works
Industrial Models South African Designs Act 195 of 1993

Equal Treatment of Nationals and Foreigners: Foreign nationals can expect to receive an impartial trial from the country's judicial system.
The Language of Justice: Any of the 11 official languages of South Africa.
Recourse to an Interpreter: Interpreter services are available if the language of the proceedings is not understood by the accused.
Legal Similarities: The legal system is based on Roman-Dutch law and English common law.
South African commercial laws and company laws are similar to the laws of the United Kingdom.

Constitution of South Africa	South African Constitution
South Africa - Companies Act (2008) Companies Amendment Act (2011)	South Africa - Companies Act (2008) Companies Amendment Act (2011)
The Criminal Procedure Act (1977)	The Criminal Procedure Act (1977)
The Insolvency Act, 1936, Act 24 (1936)	The Insolvency Act, Act 24 (1936)
The Consumer Protection Act	Consumer Protection Act (2008)

Checking National Laws Online: Acts Online
Legislation South Africa
Other Useful Resources: Judicial Officers Association of South Africa
Constitutional Court of South Africa
Pretoria Bar Association
Country Guides: Doing Business in South Africa

Constitutional Court	Has the final say on all matters relating to the Constitution of South Africa. Its decisions on the constitution are binding on all other courts.
Supreme Court of Appeal	Has the final say on all matters, except those that involve the constitution. It only hears cases on appeal and its decisions are binding on all courts of a lower order.
High Courts of South Africa	They have jurisdiction over all matters in their geographical area, but usually only hear civil matters involving more than ZAR 100 000 and serious criminal cases.
Circuit Courts	Part of the High Court, they move around to serve more rural areas.
Special Income Tax Courts	Deals with any disputes between a taxpayer and the South African Revenue Service, where the dispute involves an income tax assessment of more than ZAR 100,000 .
Labor Courts and Labor Appeal Courts	They have jurisdiction over labor matters and are on the same level as the High Court.
Divorce Courts	There are three such courts: the Central, North Eastern and Southern Divorce Courts. They hear divorce matters.
Land Claims Court	It was established in 1996 and hears cases dealing with the return of land taken away during Apartheid (land reform cases).
Magistrates' Courts	These are the lower courts which deal with most matters. They are divided into regional courts and district courts. They do not have jurisdiction to deal with civil matters dealing with more than ZAR 100,000.

Judges: High Court judges are mainly drawn from the ranks of senior advocates (barristers), attorneys (solicitors) and academics.

Arbitration: Recognised under South African law as a means of dispute resolution and has been the principal form of dispute resolution in sectors like construction, engineering, insurance and other commercial disputes.
Arbitration Law: Arbitration Act 42 of 1965.
Conformity to International Commercial Arbitration Rules: Party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
Appointment of Arbitrators: Free determination of the number (one or more) and the method of appointment by the parties.
Arbitration Procedure: Dispute resolution provisions in agreements usually stipulate the procedural rules that will be applicable to the arbitration process. Thus, in domestic arbitrations, one would find that rules such as those of the Arbitration Foundation of Southern Africa (AFSA).
There is no right of appeal to the courts against the decisions of an arbitrator. There is only a right of review.
Permanent Arbitration Bodies: Commission for Conciliation, Mediation and Arbitration (CCMA)
Association of Arbitrators

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