The Legalities of Agreements and Suretyships Signed Electronically Contracting in the Digital Age One of the few benefits of the COVID-19 Lockdown is that it has speeded up the adoption of the so-called digital or electronic contracting. While this form of contracting is already the norm in many instances, the challenge is, and always will …
drafting of credit documentation
Here's what Our debt recovery department offers
Our research into the various credit laws coupled with our vast experience in suing debtors and having to overcome various dilatory defences in litigation and dealing with debtor’s efforts to hide and alienate assets has meant we have developed and improved our credit documentation and forms of security over the years
The purpose of this document is as a many faceted but the most important functions are:
- To enable you to properly assess who your potential client is, before you start trading with them;
- to incorporate securities, to protect you in the event of your customer defaulting;
- to set out with certainty your trading terms, payment periods and the consequences of non-payment;
- to limit your liability in the event of you or your product’s failure to perform.
The basis of any sound business relationship between any business extending credit in any form to customers or clients, is a credit application form incorporating standard terms and conditions of trade.
We would implore any business granting credit to use a sound good application form incorporating standard terms and conditions of trade. In addition, if your credit application form has not been drafted with the National Credit Act and Consumer Protection Act.
Recent Posts on drafting of credit documentation
Business Rescue and Suretyships With the introduction of business rescue in terms of Chapter 6 of the Companies Act No. 71 of 2008, one of the areas of contention has been its affect on the suretyships of the company in business rescue. The legal consensus seems to have been reached that: although a suretyship is …
Settlement agreements form an essential part of commercial debt repayments. By acting as a recording of the agreed terms of the repayment, such agreements are meant to provide certainty as to the intention of the parties. It is for this very reason that the terms of settlement agreements should always be in writing and be …