BUSL6222 LU4
BUSL6222 LU4 - Formalities
Chapter 7 – Formalities, certainty, possibility, and lawfulness of
contracts
7.1 Formalities
Most contracts don’t need any special formalities to be valid.
That means a contract can be written, verbal, or even formed through actions —
as long as the basic requirements (agreement, legality, capacity, etc.) are met.
However, some contracts do have formalities that must be followed.
If the parties don’t comply with those formalities, the contract is usually void
(has no legal effect), though other legal consequences may also apply.
Formalities can come from two sources:
The law – certain contracts (like property sales, suretyship, or antenuptial
contracts) must be in writing because the law requires it.
The parties themselves – the people entering the contract can decide that
their agreement must be in a specific form (for example, “this contract is
only valid once signed and witnessed”).
7.2 Types of Formalities
3 types of formalities that often apply to contracts are that the contract must be:
1. Written down and signed
Must be signed by all parties
2. Signed in front of a notary public
Important docs like antenuptial contracts must be signed Infront of
notary public
3. Registered at the deeds office
This is where docs are registered and stored
Docs are open to the public
7.3 When are formalities required?
Required either in terms of the law or by contracting parties themselves
7.3.1 Formalities required by law
Legislation states that certain contracts must comply with certain formalities to
be valid.
Important examples of contracts that must follow legal formalities:
Antenuptial contracts (ANCs)
Transfer of immovable property
Suretyship (guarantee) agreements
1
BUSL6222 LU4 - Formalities
Chapter 7 – Formalities, certainty, possibility, and lawfulness of
contracts
7.1 Formalities
Most contracts don’t need any special formalities to be valid.
That means a contract can be written, verbal, or even formed through actions —
as long as the basic requirements (agreement, legality, capacity, etc.) are met.
However, some contracts do have formalities that must be followed.
If the parties don’t comply with those formalities, the contract is usually void
(has no legal effect), though other legal consequences may also apply.
Formalities can come from two sources:
The law – certain contracts (like property sales, suretyship, or antenuptial
contracts) must be in writing because the law requires it.
The parties themselves – the people entering the contract can decide that
their agreement must be in a specific form (for example, “this contract is
only valid once signed and witnessed”).
7.2 Types of Formalities
3 types of formalities that often apply to contracts are that the contract must be:
1. Written down and signed
Must be signed by all parties
2. Signed in front of a notary public
Important docs like antenuptial contracts must be signed Infront of
notary public
3. Registered at the deeds office
This is where docs are registered and stored
Docs are open to the public
7.3 When are formalities required?
Required either in terms of the law or by contracting parties themselves
7.3.1 Formalities required by law
Legislation states that certain contracts must comply with certain formalities to
be valid.
Important examples of contracts that must follow legal formalities:
Antenuptial contracts (ANCs)
Transfer of immovable property
Suretyship (guarantee) agreements
1
