THE IMPACT OF UNFORESEEN EVENTS ON CONTRACTUAL IMPLICATIONS FORCE MAJEURE / IMPOSSIBILITY OF PERFORMANCE

Contributors: Marius van Rensburg – Partner INTRODUCTION The purpose of this article is to explore the impact of COVID-19 and the resultant lockdown on contractual implications in South Africa.   There are two primary issues to be considered in this regard: Does the contract have a Force Majeure (FM) clause? If there is no FM
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Business Rescue versus Liquidation. The difference between the two mechanisms to help guide you in making the best commercial decision for your business.

By Katya Oberzhitsky (Associate designate) and Caitlin Wilde (Partner)   Introduction   The COVID-19 pandemic has caused mass uncertainty for South African business owners, given the far-reaching economic ramifications it may have on our economy. Many business owners are concerned about what this means for the health and sustainability of their business in the coming
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The Effects of Business Rescue on Property Owners

Contributors: Paul-Michael Keichel and Elani Vogel The Effect of the Moratorium In terms of section 133 of the Companies Act, 71 of 2008 (hereinafter “the Act”), a general moratorium/suspension is placed on any legal proceedings/enforcement action against the company or in relation to property owned or lawfully possessed by the company. In addition to such
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The National Lockdown and Estate Living

President Cyril Ramaphosa’s address of the nation on 23 March 2020 and announcement of a 21-day nationwide lockdown have sparked debate around the intricacies of such a lockdown, especially as to the strictness with which same would be implemented. One of the questions which forms the subject of this debate relates to whether residents of
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DISTRESSED PROPERTIES, FORCED SALES AND PROPERTIES IN REPOSESSION

Marius van Rensburg – Author INTRODUCTION Current economic conditions will likely lead to more property owners being in financial distress. This article will identify and explain the phases related to financially distressed sales. DISTRESSED SALES A distressed sale occurs where the seller must sell due to circumstances, such as impending repossession by the bank, a
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Covid-19 and the national lockdown: government support to employers/employees through the COVID19 TERS

By Pierre van der Merwe – Partner, Jordan Dias – Associate and Alisha Naik – Candidate Attorney Updated in line with the amended Directive issued by the Department of Labour as at 8 April 2020 1. Introduction The COVID-19 pandemic has presented an unparalleled level of economic uncertainty in South Africa.  The spread of the
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COVID-19 BLOCK EXEMPTION FOR THE RETAIL PROPERTY SECTOR

By Kyle Venter, Candidate Attorney and Anja van Wijk, Senior Associate Introduction This article explores the legal implications of a recent notice gazetted by government on the 24th of March 2020. The notice comes in light of the recent developments unfolding in South Africa emanating from the COVID-19 outbreak, which has now been declared a
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Measures to be Implemented in Community Schemes during Lockdown

By Lisa Schmidt, Associate and Lauren Squier, Associate Designate Introduction The period of lockdown presently being experienced by South Africans in response to the COVID-19 pandemic has resulted in much confusion and alarm, not least of which amongst members and occupants of sectional title schemes. Many members of society are unsure or unaware of what
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SUSPENDING CONTRACTS IN TERMS OF SECTION 136 OF THE COMPANIES ACT

This article narrowly addresses the power of a business rescue practitioner (“BRP”) to suspend contractual obligations on the part of a distressed company. Readers are advised to consult section 136 of the Companies Act 71 of 2008 (“the Act”) in its entirety before taking any related steps. Once business rescue proceedings commence, all contracts to
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THE EFFECT OF COVID-19 ON RENTAL PAYMENTS AND EVICTIONS

By Anja van Wijk, Senior Associate and Nicole Rens, Candidate Attorney Introduction As the whole country self-isolates in the safety of their homes, landlords and tenants fear the economic backlash of the COVID-19 novel virus. Commercial tenants are advised by the State, and their landlords, to close-up shop and send employees home. These tenants and,
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