Questionnaire on the Use of the UPICC in Order to Interpret or Supplement National Contract Law: South Africa

Abstract

Although the Constitution of South Africa provides the basis for the use of the UNIDROIT Principles in developing the law, this has not yet been argued or proposed in any reported case. The obligation to negotiate in good faith has not yet been clearly established in South African law, but the recent Makate case may provide the impetus for such a development. The Consumer Protection Act has introduced remedies for some problems such as surprising terms, but does not find application in commercial contracts. The interpretational approach to contracts has also significantly evolved from a textual to a contextual approach. The right to terminate a contract due to breach under South African law is comparable that under the UNIDROIT Principles. The right to claim interest after breach under South African law is similar to that under the UNIDROIT Principles. The Prescribed Rate of Interest Act makes provision for determining the interest rate.