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Are Your Standard Terms And Conditions Part Of Your Contract With Your Clients, Or Do You Just Think So? |
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The recent Supreme Court of Appeal case of Cape Group Construction (Pty) Ltd t/a Forbes Waterproofing v Govt of the United Kingdom 2003 (5) SA 182 (SCA) has once again highlighted the challenge of ensuring that your standard terms and conditions of trade form part of your contract with your clients. |
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An Example Case of Credit Control's Impact on Legal Action |
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Proper credit control has a bearing on when matters go legal and not only as preventative action. To illustrate this I will give you an example of what happened to me some time back. A client of mine had taken over another business and with this, had inherited shall we say a dubious credit control system. One of the debtors they inherited had a debt of R 180 000.00 which my client was feeling a bit nervous about. They had called the debtor into a meeting to discuss their repayment of the debt. The debtor had stated quite candidly that they could not pay the entire debt any time soon and then went so far as to tender a series of post dated cheques of R10,000.00 each per month. My client felt that this was unacceptable and that their business could sustain larger monthly payments of the debt. |
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The Importance Of Knowing What Type Of Business Entity Your Debtor Is |
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Often as an attorney involved in debt recoveries I have asked a client what type of business their debtor is and I am shocked at the number of times I get the proverbial shrug of the shoulders. |
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Review the Close Corporation Deregistration Process |
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As an attorney acting predominantly for creditors, one of the real advantages I see in the deregistration process of Close Corporations is the personal liability provision of Section 26(5) of the Close Corporations Act 69 of 1984.
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