In this article, we look at reasons why you should refrain from using a contract you found online.

1. Contract may not be suitable for your business transaction

Each transaction has its own unique elements which parties negotiate and agree on. Standard form contracts are likely to be inadequate where parties have negotiated non-standard deal points.

Contractual provisions are interrelated and trying to squeeze a customised provision into the contract without the assistance of a lawyer may lead to inconsistency and ambiguity, resulting in costly legal fights.

2. Incorrect Contract

The contract you find online might not be the contract you need. Perhaps you need a joint venture agreement but instead end up using terms which are relevant to a partnership agreement. The two are fundamentally different and you will be agreeing to terms that could cause problems at a later stage. For example, with a partnership, all partners are responsible for the activities of the partnership whereas the joint venture does not operate in this manner.

3. Contract may not have been drafted for your industry

Certain industries have issues that are specific to them, which must be covered in the contract. The contract you found online may have sections which apply to a completely different industry. These will create problems if disputes and uncertainties arise between yourself and the other party to the contract.

4. You may not understand the legal jargon

Many contract templates are full of legalese. You may see terms like “warranty”, “indemnify”, “joint and several liability”, “jurisdiction”, “force majeure”, “disputes”, and the list goes on.

If you lack experience with legal jargon, you will not fully understand the meaning and effect of certain provisions in the contract.

5. Contract could be missing fundamental clauses

If you are not a lawyer with experience in drafting contracts, you might be under the impression that the contract you found online covers all important aspects. The problem is that you will not know if the contract is missing important clauses which experienced lawyers will pick up instantly. The contract could be missing clauses which are necessary to ensure that you and your business are sufficiently protected.

6. Incorrect Jurisdiction

Well drafted contracts contain a clause stating that the contract is governed by the law of a certain jurisdiction. The laws differ by country. A contract written in one country may not necessarily be appropriate for your country.

The same applies to legal proceedings which may arise in connection with the contract. In South Africa, for example, some contracts will include a clause dealing with Arbitration and stating that the Arbitration will be in accordance with the Arbitration Foundation of South Africa. As this clause is relevant to contracts concluded in South Africa, it is not a clause you will find in a contract that is covered by laws of other countries.

7. The contract might not have been drafted by an experienced lawyer

When you find a contract online, you will not necessarily have access to information about the person who drafted the contract. Is the author a lawyer, law student or business owner? Do they have experience drafting legal contracts? Do they understand what they are writing in the contract? Did they simply amend the contract to what they thought made sense?

You are using a contract without knowing whether the author knew and understood what they were doing when they prepared the contract.

If you are not a lawyer, neither is the author, how do you know that the contract contains everything you need to protect your business?

8. Certain clauses could be unenforceable or illegal

The contract from Google could contain clauses which are unenforceable or illegal in your country. If the contract fails to contain a clause stating that the unenforceable or illegal clauses are severable from the rest of the contract, your entire contract will be unenforceable.

This will have significant risk for your business. For example, in terms of the contract, the supplier has failed to supply goods to your business and you wish to enforce the contract to claim specific performance or damages. However, as you copied the contract from Google, it contains clauses unenforceable in your country with the result that you cannot claim from the supplier. This will result in financial loss for your business.

Conclusion

Your contracts can only do their job if they accurately reflect your situation and intentions. Getting the help of a qualified lawyer can help you minimize legal risk, protect your business interests and assets, and save you headaches in the future.

If you require assistance with your contracts, contact us on 0724388275 or info@xelleratelegalsolutions.co.za.

The post Why using contracts you found on Google is a bad idea appeared first on Xellerate.

Over the past few years there has been no clear guidance on the regulation of crypto in South Africa. While South Africa is still assessing the best way to regulate crypto, other African countries like Nigeria and Mauritius have become frontrunners in crypto regulation.

The rapid and continuous rise of crypto has necessitated the regulation of crypto in South Africa. In recent headlines, the South African Reserve Bank (SARB) has signaled a serious intention towards regulating the crypto space, including regulating it as a “financial asset”.

How to classify cryptocurrencies is an important question requiring careful consideration as the classification will determine how the market is regulated and ultimately, how it matures and grows.

Understanding what cryptocurrency is

Put simply, cryptocurrency is an intangible, digital form of currency that uses a highly sophisticated type of encryption to regulate the generation of units of currency and verify the transfer of funds.

It is designed to work as a decentralized medium of exchange meaning it operates independently of a financial institution.

There are various types of cryptocurrencies that exist, with the most well-known being Bitcoin. Other major types of cryptocurrencies include Ethereum, Ripple, Tether and LiteCoin.

What are financial assets?

A financial asset is an asset whose value comes from a contractual claim and includes:

• cash;
• equity in an entity;
• a contractual right to receive cash or another financial instrument;
• a contractual right to exchange financial instruments with another entity on potentially favourable terms.

In order to better understand financial assets, some examples are highlighted below.

Cash and Cash Equivalents

Cash refers to notes and coins which are either on hand or in a bank account. Cash equivalents must be highly liquid investments which are short term and convertible to cash.

A contractual right to receive cash

An example of this would be money owed to you for the provision of goods or services.

Investment Securities

Securities that are issued by entities such as shares, bonds and other investment products that are purchased with the intention of obtaining economic benefit either from capital appreciation of the security product or from interest or dividends paid by the security issuer.

Cryptocurrency as a financial asset?

There are a number of articles stating that cryptocurrency cannot be considered a financial asset on the basis that it:

• is not cash;
• is not equity in an entity;
• does not give rise to a contractual right to receive cash or another financial instrument; and,
• does not give rise to a contractual right to exchange financial instruments with another entity on favourable terms.

However, if cryptocurrency is considered in a broader context, it could be possible to classify it as a financial asset.

Crypto as cash or cash equivalent

If regard is had to the abovementioned examples of financial assets, it appears that cryptocurrencies such as Bitcoin, is liquid in that it can be converted to cash via Bitcoin ATMs, rendering Bitcoin a cash equivalent capable of being converted to cash.

A contractual right to receive cash (i.e. crypto)

Some businesses accept crypto as payment for goods or services.

Crypto as Investment Securities

International companies such as Celsius Network and Binance allow their users to store their crypto in wallets and they pay users interest on their cryptocurrency which in turn attaches monetary value to their wallets.

In addition to this, international companies are moving towards a trend of issuing crypto as shares in a project and providing the crypto holders with voting rights to have a say in the development of the project.

Despite the foregoing taking place internationally, it is just a matter of time until South Africa follows suit.

In light of the above, if we digress from the traditional definition of financial assets, provision could be made for crypto as a financial asset but this could only be in respect of certain cryptocurrencies like Bitcoin. However, there will always be conflicting views on the classification of crypto.

How other countries are classifying cryptocurrencies

Conflicting classifications of cryptocurrency exist across the globe. Research shows that cryptocurrencies are being classified as follows:

Crypto as a legal tender

Legal tenders refer to forms of money the law says must be accepted in payment of debt such as a national currency. A good legal tender is reliable whereas cryptocurrencies are extremely volatile making its use as a true currency difficult. Despite this, countries such as the Central African Republic have adopted Bitcoin as legal currency.

Crypto as a commodity

In America, the Commodities Future Trading Commission has classified Bitcoin as a commodity as it is said to behave like oil and gold because it can be bought and sold in cash markets. Like crude oil, there are costs associated with generating and using crypto.

Crypto as security

Some cryptocurrencies are issued like shares in “initial coin offerings” and used to represent shares in online projects. For example, a Switzerland based company raised funds in 2017 by issuing crypto tokens that gave voting rights on how the system is developed.

SARBS Approach

SARB made it clear that it views crypto as a financial asset and not a currency given the perceived inability for everyday retail use and the associated volatility.

In addition to declaring crypto a financial asset, SARB intends including it in the definition of a “financial product”. Financial products include, shares, debentures and money-market instruments, amongst others.

As the term financial assets cover investment securities and financial product also covers investment securities, it appears SARB is viewing crypto as a financial asset on the basis that it acts as investment security.

The Takeaway

The classification of crypto is important as it will determine how the industry is regulated. The classification of crypto will also affect the accounting, tax and exchange control, applicable to crypto.

Proper regulation will usher in stability in a notoriously volatile crypto market. The regulatory framework should allow the crypto space to continue flourishing while protecting investors and minimizing the risk to the broader financial system.

Industry players have valuable knowledge to contribute to the regulation of crypto. It is therefore imperative for the regulators and industry players to have continuous consultations to ensure that crypto is not over regulated but instead regulated in a manner that allows the industry to flourish.

The post Cryptocurrency – a financial asset? appeared first on Xellerate.

The massive reach of social media platforms makes it the perfect place for businesses. The ability to instantly communicate brand messages to millions of users and receive instantaneous feedback makes it an extremely powerful tool for businesses.

Although the benefits of social media are numerous, it comes with potential dangers too.

This article points out what businesses should consider before posting on social media.

1. Intellectual Property

Problem: Although the use of social media can aid in promoting a brand and disseminating copyrighted material, it can also facilitate third-party abuse and unauthorized use of trade marks and copyright.

If you fail to do thorough research before using your intellectual property, you could end up violating a third party’s intellectual property rights.

Solution: Ensure that your trade marks are registered. The registration certificate will be sufficient to prove ownership of the trade marks.

Regularly monitor social media to ensure that your intellectual property is not being misused by third parties. This will enable you to take prompt action against the infringer.

Do thorough research to ensure that you are not violating another party’s intellectual property rights. It would be advisable to check the South African Trade Marks Registry to determine whether another company is already using an identical or confusingly similar mark.

2. Compliance with POPIA

Problem: If you collect personal information such as identity numbers and contact details from customers on social media, POPIA is applicable. This means the you will be required to comply with POPIA to avoid facing imprisonment and hefty fines.

The same applies if you are using an agency to run the business’ social media accounts. They will be collecting and processing customer information on your behalf, or at least, they would have access to view and capture customer information. The agency is required to comply with POPIA on your behalf.

Solution: Have a set system in place to ensure that the business is complying with POPIA. If you are unsure about POPIA compliance, take a look at our POPI Act Compliance Checklist.

3. Adhering to Advertising Laws and Regulations

Problem: Social media is largely used to market and advertise goods and services. This means that anything posted should comply with Advertising Laws and Regulations such as the Advertising Regulatory Board’s Social Media Code. The Social Media Code provides a clear set of rules around social media marketing.

Solution: Obtain legal advice to ensure that you are not violating any advertising laws and regulations.

4. Refrain from making false or misleading statements

Problem: While you want to make your product or service sound as attractive as possible, you need to ensure that your advertising remains truthful and that it does not mislead consumers. Your business can be held liable for false or misleading statements about its products or services.

Solution: When posting on social media be sure to fact check any statements being made about the product or service. For example, you claim that you are the oldest cleaning service company in South Africa but there are a number of other cleaning service companies that predate yours. This statement would be false and misleading and could land your business in trouble.

5. Defamation

Problem: Beware of making false claims about your competitor’s products or services. False claims could harm the reputation of your competitor and may result in a defamation claim against your business.

Care should be taken when comparing your product or services to that of a competitor. Always ensure that what you are saying about a competitor’s product is true and accurate.

This applies to comments too. If someone makes a false comment on your post that damages someone’s reputation, it is your responsibility to deal with it.

Solution: It is advisable to have social media policies in place which clearly state the ground rules when it comes to social media marketing and what can or cannot be done.

Additionally, approval processes could help minimize errors and continuous oversight can allow for prompt corrective action.

6. Compliance with Terms and Conditions of Social Media Outlets

Problem: Social media websites generally have terms and conditions in place that govern the use of the sites. Some sites’ terms and conditions contain provisions specifically regulating advertising and other commercial practices conducted on the site, including consumer sweepstakes, contests, and giveaways.

Solution: Appoint a team to consider the various terms and conditions of social media outlets and have them work with a lawyer to ensure that the company complies with the terms and conditions.

Takeaway

Brand and reputation are important to a business and can become its main asset. Social media has the potential to make or ruin a business’ reputation and brand in a day. Many of the legal issues addressed in this article can be difficult to navigate and good legal advice will empower you, to successfully navigate these issues.

If you have concerns about your business and social media get into contact with Xellerate.
Click here to reach out to our team for a free, no obligations chat.

Or contact us on: info@xelleratelegalsolutions.co.za or 072 438 8275.

The post Rules for using social media responsibly – legal risks and how to mitigate them appeared first on Xellerate.

The POPI Act came into effect on 1 July 2020, with a 12-month grace period to give companies time to comply. Every business that receives and processes personal information of individuals needed to be compliant from 1 July 2021.

The POPI Act has become a big deal because it introduced changes to how personal information can be used by South African businesses.

Any personal information collected from an individual in South Africa is now protected under the POPI Act.

If you are worried about how the POPI Act could impact your business, check out our 8 quick tips for POPI Act compliance.

1. Accountability

Ensure the lawful conditions of compliance are met by appointing an Information Officer to oversee compliance.

2. Processing Limitations

Your business should process necessary personal information only insofar as it relates to the function or activity of the business. Such processing can only be done subject to the consent of the data subject (i.e., the person to whom the information belongs), as this ensures that s/he is aware that the personal information is being processed, the purpose as well as the type of information being processed.

3. Purpose Specification

Personal information must be collected for a legitimate and lawful purpose and must not retained for longer than the required period unless it is lawful to do so.

4. Further Processing Limitation

The business must prevent the use of the personal information in a manner that is inconsistent with the purpose for which the information was collected. Any further processing of information must be compatible with the purpose of collection.

5. Information Quality

Personal information must be complete, accurate, not misleading and updated where necessary. It is the business’s responsibility to ensure that reasonably practicable steps are taken to ensure that these requirements are met.

6. Openness

The data subject whose information you are collecting must be aware that you are collecting such personal information and for what purpose the information will be used.

7. Security Safeguards

The business must take measures to secure the integrity and confidentiality of personal information in its possession by taking reasonable and technical measures to prevent loss, damage and unlawful access to the information.

8. Data Subject Participation

The data subject is entitled to an explanation of the personal information, request access to the personal information and request deletion or correction of the personal information.

The abovementioned tips are the conditions set out in the POPI Act and they are key to your compliance. They should be used to inform the actions and procedures your business must take to become, and remain POPI Act compliant.

For specific details on POPI Act compliance, take a look at our detailed POPI Act Compliance Checklist. If you are unsure about POPI Act compliance, schedule a consultation with us to discuss any questions you have. You can contact us on: info@xelleratelegalsolutions.co.za or 072 438 8275.

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In this article we discuss the top 10 reasons why you should register your trademark.

1. Exclusive Rights

A trademark registration gives you the right to exclusive use of the mark in respect of goods or services for which the trademark has been registered. It also allows you to license or sell the trademark. A certificate of registration proves that you own the trademark.

2. Protection against Infringement

A trademark registration allows you to prevent third parties from infringing your mark by using an identical or confusingly similar mark for the same or similar goods or services. Instead of having to gather heaps of evidence to prove you own the trademark, a certificate of registration is sufficient to prove ownership of the trademark.

3. Defense to Infringement Claims

If another party threatens you with trademark infringement you can rely on your registered trademark.

4. Prevents the registration of an identical or confusingly similar mark

A registered trademark protects against the registration of identical or confusing similar trademarks in respect of the same or similar goods or services. It is the responsibility of the Registrar of Trademarks to cite prior registrations against applications for identical or confusingly similar marks and to refuse to register such marks.

5. Valuable Asset

As a company builds its goodwill, the brand value increases. Recent studies show that the most valuable brand in the world has an estimated brand value of about 355.1 billion US Dollars. If your company is sold, the registered trademark will be accounted for in the sale price.

6. Security

Registered trademarks can be pledged as security for the fulfilment of an obligation.

7. Generates Revenue

A registered trademark may be licensed to a third party in exchange for royalties, bringing revenue to the business.

8. Right to use the ® symbol

As soon as a trademark has been successfully registered the proprietor of such trademark is entitled to use the ® symbol. This informs third parties that the trademark is registered and could deter them from infringing upon the mark.

9. Counterfeit Goods

A registered trademark grants you protection against counterfeit goods. The registered trademark can be registered with customs in terms of the Counterfeit Goods Act which is a means to prevent counterfeit goods from entering the country.

10. Costs

The costs to register trademarks are reasonable considering the benefits of a trademark registration.

If you would like to enjoy the abovementioned benefits, it is important to register your trademark. Our expert IP lawyers can assist you with registering your trademark.

If you require assistance, schedule a free consultation with an Xellerate lawyer, at your convenience.

The post Why should I pursue a trademark registration? appeared first on Xellerate.

First up, what are trademarks?

A trademark is a mark used or proposed to be used in relation to goods or services with the purpose of distinguishing your business’s unique goods and services from the goods and services of others.

A trademark can be in the form of any sign that is represented graphically including a:

• Device

• Name

• Signature

• Word

• Letter

• Numeral

• Shape

• Pattern

• Ornamentation

• Configuration

• Colour

• Container for Goods

It can also be a combination of the above.

Examples of trademarks include:

Words:

McDonalds, KFC, Nike

Slogans:

“Finger Lickin’ Good” and “Just do it”

Logos:

Container for goods:

Apart from the traditional trademarks mentioned above, the following non-traditional trademarks can also be registered:

• Three-dimensional trademarks

• Colour trademarks

• Holograms

• Motion/Multimedia trademarks

• Sound trademarks

• Olfactory (smell/scent) trademarks

• Taste trademarks

• Texture trademarks

• Position trademarks

• Gesture trademarks

Trademarks are registered in one or more of 45 classes, which classes cover specific goods and services. It is important to ensure that your trademark is protected in the correct class which is dependent on the goods or services in respect of which the trademark will be used.

Why should I register my trademark?

A registered trademark will give you exclusive rights to use, license and sell the trademark. If another party uses a similar or identical trademark in respect of similar or identical goods or services for which your mark has been registered, you will be able to take legal action.

When will my trademark be registrable?

Your trademark will be registrable if it:

1. serves the purpose of distinguishing your goods or services from the goods or services of another party;
2. does not consist exclusively of a sign or an indication which may serve, in trade, to designate the kind, quality and quantity, intended purpose, value, geographical origin or other characteristics of your goods or services, or the mode or time of their production or of rendering of the services;
3. is not an emblem or national flag;
4. has not become customary in the field of trade;
5. is not offensive or contrary to the law or good morals or deceptive by nature or way of use; and,
6. does not contravene the rights of third parties (i.e., it is not identical or confusingly similar to a trademark belonging to another proprietor).

If my trademark is registered in South Africa, does it mean I have trademark protection in other countries?

Trademarks are territorial. This means that a registration in South Africa will not provide trademark protection in other countries. If you intend using your trademark in other countries you should consider filing trademark applications in those countries.

What is the lifespan of a trademark registration?

A trademark can be registered forever, provided it is renewed every 10 years upon payment of the prescribed renewal fee.

I am interested in filing a trademark application – what is the process?

Why do I need legal assistance?

At Xellerate, our lawyers will:

• Advise which class or classes your trademark should be registered in based on the goods or services in respect of which your trademark will be used.

• Conduct a comprehensive search of the South African Trade Marks Registry to determine whether any conflicting marks exist on the Register which could affect the registration of your trademark.

• Handle the entire trademark application process, allowing you to focus on the other important components of your business.

The post Trademarks – basics for business owners appeared first on Xellerate.

In this fast-paced world most things are available at the click of a button – including online legal advice. The benefits of using an online lawyer may not be immediately apparent, but they are numerous.

Convenient

One of the most obvious benefits of online legal advice is how convenient the process is. You can access legal services from the comfort of your home or office by simply browsing their website and communicating with them quickly and conveniently. You are able to schedule a virtual meeting via Zoom at your convenience allowing you to meet with your lawyer while you are on the go.

Cost-effective

There is no doubt that lawyers from traditional law firms can have virtual consultations or communicate via text. What you may not know is that you will be charged for every minute the lawyer spends on the Zoom consultation or reading and responding to your text. Online legal service providers operate using transparent, fixed-fee pricing instead of surprising clients with excessive bills at the end of the month.

Experienced lawyers

Most online legal service providers are made up of experienced lawyers who have worked on complex matters. These lawyers understand the importance of finding creative solutions to legal problems and staying up-to-date with constantly evolving law. You are provided with immediate access to highly experienced and reputable lawyers spread across different locations.

Every client is valued

Whether you are a start-up or established business, you are valued. Most online legal service providers ensure that every client is a priority. Whether the legal services you require costs R1000 or R10 000, all clients will receive excellent quality and service.

How can Xellerate help?

By booking a free legal consultation via Zoom with Xellerate, you will enjoy the benefits described above as well as free lawyer advice on a situation you or your business may be facing.

The post Online legal advice is changing the game appeared first on Xellerate.

Many business owners overlook the importance of legal advice until it becomes a necessity, and in some cases, it could be too late.

Good legal advice can be crucial to the success of your business and can assist you in almost every aspect of your business, from the structure of your business to intellectual property, contract law, employment law and more.

The importance of legal advice for your business may not be so apparent. Legal advice can assist you with:

1. Choosing the correct business structure

You have selected a partnership as your business structure, fast-forward 3 years and your partner incurred excessive debt for the business. Little did you know you would be held personally liable for the debt incurred by your partner and now you are faced with selling your car to pay the debt.

This is a common mistake made by business owners which is why it is important to have a corporate lawyer help you select the correct business structure to best suit your business and its needs. Whether it’s a sole proprietorship, private company, limited liability company or partnership, a corporate lawyer can help set up and properly organize your business.

2. Protecting your Intellectual Property

You decide on a business or product name and start using it on your website, in your domain name, on business cards, social media pages and products and 6 months later you receive a threatening letter from another company, with an identical or similar business or product name, demanding that you immediately cease use and threatening to take you to court. What a dilemma!

Obtaining legal advice can save you money and time. An experienced intellectual property lawyer will ensure that your intellectual property is protected and that you are not infringing a third party’s intellectual property right.

3. Contract Management

In an attempt to save money, business owners use templates from Google without fully understanding the purpose of the document, the rights and obligations contained therein and whether it creates any implications for the business. A one-size-fits all approach cannot be followed as each business has unique requirements. Binding your business to an agreement without being fully aware of the implications could have significant consequences.
Consistently well drafted contracts and careful contract review are imperative to the quality and success of business transactions. An experienced business lawyer knows exactly what to look out for in an agreement and will negotiate the agreement to ensure that your business is protected.

4. Limiting disputes

Making business decisions without having knowledge of the legal implications has the potential to give rise to disputes. This could mean lengthy and costly litigation which is the last thing your business needs.

Instead of waiting for disputes to arise, it is best to have legal guidance from the outset. The fees paid to save your business from getting into trouble is only a fraction of the fee that will be charged for litigation.

5. Obtaining the best possible outcome

Whether it is a deal you are negotiating or a disagreement with employees, a lawyer will ensure that your business gets the best possible outcome. Instead of trying to navigate the various potential outcomes by yourself, it is advisable to obtain legal advice.

The takeaway from this article is to seek legal advice when starting and growing your business for greater potential. Your business will always face legal risks that it should be protected from. Laws are constantly changing and evolving, and for you as a business owner, with little legal knowledge and experience, keeping track of these changes can be a daunting task.

At Xellerate, we work closely with our clients with a mission to elevate client outcomes, value and experience. Contact us if you require legal advice – we are experts in business legal needs.

The post Legal Advice: The value of legal advice for businesses appeared first on Xellerate.

Choosing the Correct Business Structure

One of the first steps when starting your business is choosing a business structure to suit the needs of your business. Structures vary from sole proprietorship, partnership, private company, public company, personal liability company, non-profit company and state-owned company, each with their own advantages and disadvantages.  The business structure can be critical to the success of your business as the structure influences everything from day-to-day operations, taxes, the paperwork you need to file and your personal liability.

Protecting your Intellectual Property

Intellectual Property (“IP”) is integral and unique to your business and it can become your most valuable asset. It is therefore important to ensure that your IP is protected.  Intellectual Property includes, but is not limited to, trademarks (your logo, business name, product look and feel) and copyright (your photographs, music, book and software).

Protecting your Intellectual Property can be complex to understand which is why it is advisable to have an experienced and qualified Intellectual Property lawyer assist you with the process, including the registration of your trademark and/or drafting a Copyright Assignment Agreement.

Having  Comprehensive, Written Contracts in Place

A handshake, phone call or Whatsapp conversation is not sufficient to secure and guarantee your agreements with other individuals and/or businesses, in particular you rights and obligations in terms of the agreements. It is advisable to have your agreements in writing and signed by all parties to the agreement. Contracts are necessary to ensure your business is protected and in doing so, contribute to the success of your business.

A proper written contract protects the fundamental aspects of your business and it can provide security and peace of mind to all parties involved in the business transaction.  You may require written contracts with co-founders, employees, suppliers, clients, service providers or affiliates.

Fulfilling Legal Obligations

When starting your business, it is important to ensure you comply with all necessary legal and commercial obligations. These obligations include, without limitation, tax obligations, VAT, PAYE, Unemployment Insurance Fund, insurance, medical aid schemes. It is important to be aware of the legal and commercial obligations from the outset in order to avoid liability.

Your Staff

If you have employees or contractors, it is important to comply with employment laws. You will require contracts as well as company policies. The contracts will deal with aspects such as duties and responsibilities, leave, termination of employment, length of appointment, restraint of trade and confidentiality. Without clear written contracts regarding the employee’s or independent contractor’s rights and responsibilities, the relationships may easily break down and lead to expensive disputes that could have easily been avoided.

Key Takeaways

Legal compliance plays a crucial role in the success of a business. The legal landscape can, however, be difficult and confusing to understand. It is best to approach a professional to assist you with the legal components of your business.

Our lawyers are experts in commercial and business/corporate law with a thorough understanding of the legislation pertaining to companies. If you would like a consultation to discuss your options going forward, you can schedule a free, no obligations consultation.

The post Legal aspects entrepreneurs forget that can be dangerous to the success of their business appeared first on Xellerate.