BUSINESS LAW WORKSHOP B COM MKT/HRM 14 MARCH 2015

INTRODUCTION Lecturer/Facilitator Andrew Tucker B Com LLB, Attorney of the High Court of South Africa Contact details:

WORKSHOP PROGRAMME 11:30 – 12:00Course Overview 12:00 – 12:30Assignment Questions 1,2 & 3 13:30 – 12:40Break 12:40 – 13:00Assignment Question 4 13:00 – 13:30Your questions and problem areas

COURSE OVERVIEW Introduction to law Law of contract Sale & lease Agency, insurance, security, forms of payment Forms of business enterprise Employment law Competition, internet laws & intellectual property law Insolvency

RESOURCES

BOOKS Fouché, M.A. (et al). Legal Principles of Contracts and Commercial Law, Revised 6 th edition, 2007, Lexis Nexis Havenga, P (et al). General Principles of Commercial Law, 6 th edition, 2007, Juta Kopel, S Guide to Business Law, 4 th edition, 2009 or 5 th edition, 2012, Oxford University Press Gibson, JTR. South African Mercantile and Company Law, 8 th Edition, 2003, Juta. Scott J (et al) The Law of Commerce in South Africa, 2009, Oxford University Press.

WHAT IS A CONTRACT – GENERAL DISCUSSION All contracts are agreements but not all agreements are contracts

THE DIFFERENT FORMS OF BUSINESS ENTERPRISE

ASSIGNMENT QUESTIONS

LAW “ A set of rules, accepted by people as binding on them and enforced by the State”

HOW A LAW IS MADE Hand-out

THE REQUIREMENTS OF A VALID CONTRACT

VALID, VOID & VOIDABLE CONTRACTS A valid contract is a contract that is 100% correct in all respects. All the requirements for a valid contract have been met and the parties must perform. A contract that is void means that the contract actually never really came into existence. It is said that the contract is void ab inito (from the beginning). A voidable contract is valid but because of some defect it can be set aside at the request of one of the parties

FACTORS TO CONSIDER – Q 2.3 Have the requirements for a valid contract been met? Peter’s contractual capacity – enforceability Effect of the wrong colour – how material is the colour? Effect of the weather – causus fortuitus

DUTIES OF THE AGENT To execute the Principal’s instructions To account to the Principal To keep his property separate from that of the Principal To act honestly and in good faith – fiduciary relationship exists To avoid conflicts of interest Not to delegate his authority To act with care, skill and diligence

THE DUTY OF GOOD FAITH Put the Principals interests above your own May not make a hidden secret profit May not sell his own goods to the Principal without disclosing the fact Not to disclose confidential or private information of the Principal

TERMINATION OF AGENCY Completion of the mandate Effluxion of time Death, insanity or insolvency of the Agent or the Principal Revocation of mandate by the Principal Renunciation of the mandate by the Agent Mutual consent

EMPLOYEE OR INDEPENDENT CONTRACTOR Locatio Conductio Operarum The letting and hiring of services (employee) Puts services at the disposal of the employer Authority, control and supervision of the employer Usually paid per hour, day, week or month Employer vicariously liable for delicts of employee Locatio Conductio Operis The letting and hiring of work (contractor) Performs a certain piece of work Not under the control or authority of the employer Usually paid per job or per result Contractor personally liable for delicts

EMPLOYEES AND CONTRACTORS Presumptions created by BCEA (83A) and the LRA the manner in which the person works is subject to the control or direction of another person the person's hours of work are subject to the control or direction of another person in the case of a person who works for an organisation, the person forms part of that organisation' the person has worked for that other person for an average of at least 40 hours per month over the last three months the person is economically dependent on the other person for whom he or she works or renders services the person is provided with the tools of trade or work equipment by the other person the person only works for or renders services to one person

TEST Control test Organisation test Dominant impression

COMMON LAW DUTIES OF THE EMPLOYER To pay the employee (if agreed) To provide work (if necessary) Not to require employee to do work junior to their status Not to force employee to different work than agreed upon Not to contract the employee to someone else without employee consent