Contracts are the source of legal obligations and set out the rights of contracting parties. The South African law of contract is not codified but finds its foundation in the common law developed over time pursuant to case law, which dictates how a contract governed by South African law should be interpreted should a dispute arise. South Africa has seen a fundamental change from the traditional strict approach guided by the parol evidence rule, to the current expansive approach.
It is important to be aware of the developments in the Courts’ stance to the interpretation of contracts to ensure the contractual parties intentions are clearly provided for in the written agreements, alleviating the risk of extrinsic evidence being required and adduced should an interpretational dispute arise. The below timeline seeks to assist with providing a summary of the cases which have had the greatest impact on the development of South African contract law.
