• The Kaplan Team

THOUGHT OF THE WEEK Can I change my mind after signing a contract?

John is eager to secure accommodation at university for his daughter and concludes a lease agreement for a flat near campus. Before commencement of the academic year, she has a change of heart and decides to pursue studies at a different institution. What are John’s rights?


While it happens that a contracting party’s needs may change after entering into a contract, it may be very difficult for John to resile from that commitment. The point of departure is that a party may be held to the agreement for the duration thereof, alternatively his/her request to resile therefrom (referred to as a repudiation or anticipatory breach) may be accepted by the innocent party, subject to the innocent party’s rights to claim damages as a result thereof.


The agreement itself may, in certain circumstances, come to John’s aid. This may take the form of a rouwkoop clause, or cancellation by notice; however, these “outs” are normally linked to a fee payable to the innocent party. Certain legislation, such as the CPA and NCA, has also introduced “cooling-off” periods which allow John to walk away (when applicable) within a short time after concluding the agreement. These are deemed to form part of a specific set of agreements; however, these “cooling-off” rights have very limited application and need to be considered before concluding agreements.


Whatever the reason that you may wish to get out of a contract or are faced with a situation where another party seeks to resile from a contract concluded with you, your first port of call should be to communicate with your attorney for assistance.


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DISCLAIMER:

This article is not intended to constitute legal advice and is produced for information purposes only and to provide a general understanding of the legal position relating to the topic. It is recommended that advice relating to the specific circumstances of your situation be sought from our attorneys before acting upon the content of this article. This article was written at a particular point in time and accordingly may not always reflect the most recent legal developments, if any, applicable to the relevant topic. Kaplan Blumberg and its partners and/or employees, are not responsible for any consequences which may follow upon any decision taken to act upon the information provided in this article.