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Commercial Law

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 Business rescue or liquidation

What is the difference between the two legal processes?

In the current tough economic trading conditions; there are many businesses that are under severe financial pressure.

Yesterday we received the following query and will again try to answer the question put to us here in this blog.

 “My family business is a company and has been operating successfully for nearly 20 years. Over time I’ve also managed to get a few investors to invest money in the business. 2018, however, has been really tough and we are struggling to make ends meet. I feel that we have arrived at a point where its decision time about the future of the business and how to manage it. I was wondering whether you can advise me as to whether or not liquidation is the best route to follow and perhaps you might advise me to rather consider the option of business rescue. Could you please also explain the difference between these two options?”

Early Termination of Leases and Fixed Term contracts
To Stay or To Go: Is it Worth it?

Lease cancellations:

Section 14 of The Consumer Protection Act No 68 of 2008 (CPA):

In our last blog, we looked at the wording of the whole of section 14 (3) and commented extensively on its content and the background to the section.

Today we will concentrate on section 14 (4) of the CPA and also comment on section 14 as a whole as it relates to a fixed term contract and particularly the cancellation of lease agreements.

shareholders meeting web

How, when and who must make valid company resolutions?

“My father owns a family run business and I have just bought a shareholding in that business. I’ve been part of the family business for some time; but now that I am a shareholder and director of that business; it has dawned on me that I know very little about how a company is run in practice and how the company’s directors and shareholders are supposed to take decisions. What should I know about company resolutions and what is my role in those resolutions and the decisions made by the directors of the company?”

break lease agreement

You can not just pack up and move out.

The termination or cancellation of a commercial lease agreement/s is always a legal conundrum.

One of the matters that we specialise in is Consumer law and also in lease agreement cancellations and terminations.

It is a contract and must be dealt with correctly and legally if you want to cancel it or terminate it prematurely ie before its expiry date.

You cannot just cancel a lease agreement.

If you breach the lease and simply vacate and abandon the premises the High Court can grant the landlord an order for specific performance.

This can mean that the court orders you to return to the premises and pay the rental for the balance of the lease period. Alternatively, it can allow the landlord the right to cancel the lease because of your breach and grant an order for damages in favour of the landlord being equivalent to the rent due for the balance of the period.

defective motor web 

What are your rights when your vehicle breaks again as a result of soddy workmanship?

We still get a lot of enquiries from clients and consumers who feel that they have been ripped off.

A recent example was of a client who had his vehicle repaired by a service provider in Welkom in the Orange Free State.

 “My vehicle broke down on the N1 four months ago. I had the vehicle towed to a service centre in Welkom with an oil leak on the Gearbox. They ended up redoing the engine which took more than 4 months. After doing the engine on the vehicle and when it was still in their workshop; there was a bearing knock and they had to redo the engine again. I had already paid them R162 000.00 for this first repair and they then wanted to charge me again for the second repair even though they never returned the vehicle to me and they failed while the vehicle was still with them to repair it properly in the first place in terms of their quote. What are my rights?”

residential house lease cancel

One has to draw a clear distinction between lease agreements for residential properties and those that are for commercial properties

We received the following in an email this last week.

“I signed a 2-year lease agreement with my landlord on the 27th February 2018 and the lease agreement came into effect on the 1st March this year. I simply cannot afford the rent and I wrote to my landlord on the 29th June cancelling the lease and requesting repayment of my security deposit of R 28000.00. He has refused to refund me. What can I do?” 

 

lemon car banner

During the course of this last month we did a blog on Accident damaged vehicles being Defective Motor Vehicles and in that blog we also covered the consumers rights, in terms of the Consumer Protection Act No 68 of 2008(CPA), to claim a repair, a replacement or a refund of the purchase price from the dealer and/or service provider in the event that the consumer had bought a defective/accident damaged vehicle.

We continue to get daily inquiries about this problem.

A purchaser also has similar rights in terms of the common law, in the possible event that the CPA is not applicable in the circumstances of any particular case. This can occur for example when the 6-month statutory period since the date of sale has already expired.

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South Africa

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Phone: +27 (028) 316 2832
Email: info@legaladviceoffice.co.za