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.
    
    

• • 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.