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Offer to purchase template

Legal agreements online for South African's by South African's

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    • 1. Introduction

      Living in an era where a great percentage of South Africans have
      access to technology has opened a vast gateway for the sale and
      purchase of products. This subsequently resulted in templates for
      sale and purchase agreements becoming increasingly popular with
      the added benefits of speed and convenience for consumers. It is
      now possible to create professionally drafted South African
      templates within minutes.

      A template is a professionally designed document which can be
      used for legal purposes, for business, or even for personal use.
      This article will set out the legal implications of using templates for
      an agreement of sale and purchase in South Africa, and identify
      the considerations that consumers should be mindful of when
      using a sale and purchase template.

Best Free Offer to purchase 2020


    • 2. Contract of sale and purchase

      • The most common contractual form is the contract of sale
        and purchase. This type of contract can be briefly described as a
        legally enforceable agreement between one party to buy
        goods/services and another party to sell the goods/services. In
        other words, there should be an offer by the seller and an
        acceptance of the offer by the buyer.

        A contract acts as a guide for the parties to ensure that they have
        discussed the essential elements of their agreement.

        In order for an agreement to be identified as a proper contract of
        sale and purchase the contract has to have the following essential
        elements:

        2.1 consensus – there must be an agreement between the
        parties on all material aspects of the contract;

        2.2 capacity – the parties must be able to contract;

        2.3 formalities – the contract usually has a certain form which needs to be observed;

        2.4 legality – the agreement must be lawful;

        2.5 possibility – the parties must be able to perform the
        obligations in terms of the contract;

        2.6 certainty – the contract must have a definite content in order
        for the obligations therein to be enforced

  • 3. Templates for agreements of sale and purchase in South Africa

    • A sale and purchase template should generally contain the following clauses:

      3.1 the name, address, identity numbers, and marital status of
      the buyer and seller;

      3.2 a clear description of the item which is being sold;

      3.3 the selling price and the form of payment which the buyer
      and seller agree upon, as well as payment of a deposit, if
      any;

      3.4 whether the sale is subject to the buyer obtaining a loan, if
      so, the amount of the loan and the date by which the loan
      must be obtained should be specified;

      3.5 confirmation that no amendments to the agreement of
      sale and purchase are valid unless it is in writing and signed
      by the buyer and seller or an agent of either party.

      South Africans have not only become more familiar with using
      legal contract templates but are gradually becoming more positive
      towards it. This can be attributed to the growth of local internet
      users, the increased use of technological devices, and an enabling
      legal framework that protects the consumer involved in
      agreements of sale and purchase.

      The provision of legal contract templates has grown significantly in
      South Africa and it is expected to grow further as more locals are
      enjoying the ease with which a wide variety of products can be
      purchased and sold in an easy and convenient manner.

      3.6 Benefits of templates for sale and purchase agreements

      Benefits

      Percentage

      Convenience

      86%

      Ease of use

      65%

      Price

      90%

      Selection

      89%



      A large number of South Africans connect to the internet via their
      mobile devices or computers and therefore these devices are seen
      as key in growing the online industry.

      This is why it is important to note the significance of continually
      progressing with technology and how the utilization of legal
      contract templates has also grown exponentially in South Africa.
      With thousands of templates being produced it has become
      effortless to search and select a template that meets all the
      requirements for the type of agreement of purchase and sale you
      wish to conclude.

  • 4. The legal effects of a sale and purchase contract

    • 4.1 Passing of ownership – in most contracts of sale, the
      purchaser acquires ownership of the product/service upon
      execution of the contract of sale.

      In terms of immovable property the property is transferred by
      way of registration in a Deeds Office.

      In the case of movable property ownership is transferred
      upon delivery coupled with payment of the purchase price.
      4.2 Risk and benefit – the general rule is that the risk and benefit
      passes to the buyer once the goods are delivered, unless the
      agreement of purchase and sale states otherwise.

      4.3 Examining the goods – the consumer has the right to
      examine the goods, and is not responsible for any loss or
      damage to any goods unless such damage resulted from the
      negligent or reckless actions of the consumer.

  • 5. Security and privacy

    • It is important to be aware of the security and privacy issues that
      are associated with using legal contract templates, such as,
      fraudulent use of credit cards, computer viruses, unsolicited email
      messages, and theft of information.

      In order to minimize these security and privacy risks you should
      review the security features offered by the service provider and
      pay attention to security alerts.

      It is also crucial to ensure that you have the appropriate security
      features for storing information. An example would be SET (secure
      electronic transaction) that has been developed by Visa and
      MasterCard, which ensures that sensitive information cannot be
      seen by the business and is not stored on the website.

      Consumers now have the choice of purchasing high quality web
      designs from premium templates or simply purchasing a more cost
      effective template that lacks variety but not quality. The supplier of
      these templates has to ensure that their site runs smoothly with
      minimal to no difficulty experienced by the consumer, and
      further that they provide the consumer with complete security of
      their private information.

  • 6. Considerations when using a sale and purchase template

    • Prior to using a template for a sale and purchase agreement, there
      are certain aspects to keep in mind to ensure that you made the
      right choice:

      6.1 Limited budget –there are numerous cheap templates that
      are developed online which primarily assist business
      owners or private individuals with a professional design
      without the need to pay excessive fees;

      6.2 Repetition of legal contract templates – there are thousands
      of templates being produced and this can result in the same
      template being used by more than one person. It is sensible
      to customize the template you have selected so that it is best
      suited to your needs and has an element of uniqueness;

      6.3 Selecting the right design – the template you choose should
      match your business and aesthetic needs. The template
      should provide you with both the function and the look that
      you aim to have;

      6.4 Mobile responsive templates – this ensures that consumers
      receive an ideal experience no matter what type of device
      they use to view the templates.

      6.5 Flexibility of customizing a purchased template – you need to
      ensure that you choose a template that will allow you to
      make the necessary changes you wish to have. This secures
      you from paying for a template with a default design and no
      room for alteration.

      6.6 The most recent template – an outdated template may
      encounter unexpected functionality issues, and the templates
      may not be in keeping with the developments of the law.

      It is crucial to choose a template that has adapted to these
      changes in order to avoid the risk of purchasing an invalid
      template. The content of the template should be clear, lawful
      and up-to-date.

  • 7. Advantages and disadvantages of a sale and purchase template

    • Advantages

      Disadvantages

      Minimizes risk – having a contract will provide the grounds for taking legal action if there is a failure to perform obligations.

      Not drafted by an attorney – certain clauses may not be in keeping with legal standards.

      Clarity – the contract will contain all the important details and expectations of each party.

      Missing provisions – certain key provisions to a contract may be missing from the template.


  • 8. How long is an offer to purchase valid for in South Africa?

    • There is no specific time period of validity, however, there are four instances which make provision for the lapse of the offer:

      • The sale agreement provides a blank section for the buyer to fill in how long the seller has to accept the offer. The seller in turn has a
      number of days to either accept or reject the offer. When this period comes to an end the offer is declared null and void.

      • If the offer is revoked by the buyer, provided that the agreement does not state that the offer is irrevocable for a certain period and
      it must be brought to the seller’s attention in that time frame.

      • If the seller rejects the offer.

      • Death of either party prior to the offer being accepted results in an automatic lapse of the offer. If the offer has been signed and
      accepted, all rights and duties arising from the contract will be passed to the deceased estate.

  • 9. Force majeure in relation to Covid-19

    • Force majeure is an event that occurs which is beyond the control
      of the parties to the contract, for example, a war, a riot, or a natural
      disaster.

      As a result of the Covid-19 pandemic and the subsequent national
      lockdown many people who entered into contractual agreements
      were hindered. For this reason, the parties to a sale and purchase
      contract may wish to include a force majeure clause which gives
      the right to either party to suspend the contract until the event
      passes, or to cancel the contract altogether.

  • 10. Conclusion

    • As more South Africans have access to the internet the more
      transactions are being performed by using legal contract templates
      for sale and purchase agreements.

      When parties negotiate the sale and purchase of goods, they need
      to give special attention to the relevant written terms of their
      contract. This will result in more certainty as to whether all the
      parties involved have the same understanding in respect of each
      contractual term.

      The world of law can be complicated, especially for those who are
      not trained lawyers, yet it is inescapable. Every single person
      operates within the law to some degree. This is why it is important
      to understand the legal implications of using a legal contract
      template for your agreement of sale and purchase.




      ___________________________________________________________
      Hi, I’m Kailash Pillay, an attorney from the city of Johannesburg. My passion for the law
      stems from a desire to improve upon the lives of the vulnerable who fall prey to a
      corrupt system.
      I studied at the University of Johannesburg where I obtained my Bachelor of Laws
      degree, the starting point to the long journey of becoming a legal practitioner.
      This profession has taught me to persevere through the complexities of the law and to
      continually develop my skills as a legal professional.