Business & Contracts

Most everyday agreements are contracts, whether you sign a document, click ‘I agree’ or shake hands. This guide explains when an agreement is binding, how to register a business, and your options when the other side does not keep their promise.

Updated October 2026 · General information, not legal advice

In this guide

The key laws

What you'll need

Gather these before you take action or speak to a lawyer:

Advertisement · 728 × 90 in-article banner

Your brand, in front of South Africans looking for legal help.

Common questions

Is a verbal agreement legally binding?

Usually, yes. Most contracts are valid without being written down, but they are harder to prove. A few must be in writing to be valid, including the sale of land and a suretyship.

Are electronic signatures valid?

Yes. The Electronic Communications and Transactions Act recognises electronic signatures for most agreements. Some documents, such as wills and deeds of sale for land, still need a handwritten signature.

How do I register a company?

Private companies are registered with the Companies and Intellectual Property Commission (CIPC), usually online through the BizPortal. You will need the directors’ ID numbers and a company name, which you can reserve first.

What can I do if someone breaches a contract?

You can generally demand that they perform, cancel the contract if the breach is serious, and claim damages for your losses. Start with a written letter of demand that sets a clear deadline.

How long do I have to claim money owed to me?

Ordinary debts prescribe after three years from when they became due. Once a debt has prescribed you can no longer enforce it in court, so act early.

When to see a lawyer

Speak to a commercial attorney before signing a high-value or long-term contract, when a dispute involves more than the Small Claims Court limit, or when you are bringing in partners or investors.

This guide is general information about South African law and is not legal advice. Laws and amounts change; check the latest position or speak to a qualified lawyer about your situation. Read our disclaimer.

Advertisement · 300 × 250 sidebar box

Put your firm in front of readers who need legal help.