Economic review

In dollar terms, our GDP is still lower than in 2010.

S&P says that the high indebtedness of South African households is a major risk to our banking sector. Compared to other emerging markets, we have a relatively high debt leverage compared to our low wealth levels. An interesting website giving macroeconomic detail can be found at https://tradingeconomics.com/south-africa/indicators

A VPI report by TransUnion reveals an increase in pricing for new vehicles at 8.8% in the 1^st quarter and that for used vehicles by 3.7% for the same period. This says simply that used cars are not necessarily a great deal any more, whilst new cars are becoming more affordable.

Feeling the pinch: Emirates, one of the largest carriers serving South Africa, is experiencing a slump in profits and has therefore decided to integrate with its sister, budget carrier Flydubai, so as to better use facilities and capacities.

Business review

Google will be introducing Google Feed shortly; this will reflect as a stream of news stories underneath the search bar. The intent is to provide you with news topical to past searches.

Mancosa and Regent Business School, both distance learning specialists, offering accredited, accessible and affordable education, has been acquired by Actis. It intends competing in the fast-growing, listed education market in Africa.

As a part of NHI, an e-prescription system has been introduced, allowing patients to pick up their medicine from various pick-up points throughout rural KZN. The intent is to pilot a system whereby a decentralised delivery system can be implemented.

The Treasury has proposed that foreign employment income tax exemption, for South African residents working abroad, be scrapped from 1 March next year.

Biznews reports that in the first six months of this year, only one in ten active funds beat the tracker funds’ index. We pay investment agents because we believe that they will do better than the average – which is not the case.

Why would one want to do an MBA? Statistics show that MBA alumni, working within finance, receive virtually double the salary of their equivalents in that sector. The sectors employing MBA graduates, are primarily finance/banking, consultancy and IT.

Property review

The NHBRC has suspended its CEO and three other executives, apparently owing to a failed multi-million Rand SAP contract. This organisation has denied this, saying that this was owing to irregular appointments in contravention of internal procedures.

Transactions subject to a successful loan application

Many deeds of sale of land are made subject to the buyer obtaining a bond from a bank. If a bank approves such a bond and informs the purchaser, that letter is sufficient to fulfil the condition. A communication by the purchaser to the seller confirming that the bank had approved the bond is adequate to fulfil the suspensive condition. Of course, the contract may provide for such communication to be conveyed to the other party, including the agent.

http://www.saflii.org/za/cases/ZAFSHC/2017/54.html

If a sectional body corporate is unable to pay a debt to a creditor, that creditor may join all the members of the body corporate in their personal capacities when suing for payment. This is not a new provision and the Sectional Schemes Management Act simply regurgitates this provision. Section 15.

Bodies corporate and insolvency

When applying for the sequestration of a member a body corporate of a sectional scheme must also, like anyone else, prove that there is a pecuniary benefit to all the creditors of that member. What this means is that you cannot sequestrate a member if his sequestration will not benefit all his creditors – which makes it awkward to recover levies outstanding if the member is very far gone financially.

http://www.justice.gov.za/sca/judgments/sca_2017/sca2017-028.pdf

Cases & such

Notarial bonds and prescription

The phrase “mortgage bond” in section 11 (a) (i) of the Prescription Act has a wide meaning and includes a special notarial bond. The effect of this is that the prescription applicable to a debt secured by a special notarial bond is thirty years.

Factaprops http://www.saflii.org/za/cases/ZASCA/2017/45.html

Damages

Oneof the basic principles of a claim for damages is that one needs to prove those damages. In this case a purchaser had bought property, the seller having confirmed that all the improvements on the property had been approved of by the local authority. This turned out not to be the case and the purchaser had to scrap a second kitchen. He sued for damages but could prove none as the property had been sold to him for under value. Eina

Scheibert http://www.justice.gov.za/sca/judgments/sca_2016/sca2016-126.pdf

Shifren clauses in electronic contracts

I hold an article on the effect of signatures on non-variation clauses in electronic contracts. Essentially the current law stands. If this interests you, ask me for a copy.

Quotables

My view is (that) if SA continues on its current path politically then economically we are stuffed.

Sygnia’s Wierzycka

Lighten up

A newly married man asked his wife, 'Would you have married me if my father hadn't left me a fortune?'

'Honey,' the woman replied sweetly, 'I'd have married you, NO MATTER WHO LEFT YOU A FORTUNE!'

A wife asked her husband: 'What do you like most in me, my pretty face or my sexy body?'

He looked at her from head to toe and replied: 'I like your sense of humour!'