26 Nov 2024
By Ashersons Attorneys
Gift or Loan? A Cautionary Tale for the Season of Giving

Gift or Loan? A Cautionary Tale for the Season of Giving

“The bluntest pencil is better than the sharpest mind” (Unknown) The Festive Season is traditionally a time for giving, and it seems a pity to have to mention the hard realities of the law right now. But, as a recent High Court dispute confirms, things can go horribly wrong if the people involved have different notions on whether what’s being given is a gift, or a loan. “Here’s R400k Ma” – But was it a loan, or a gift? The setting for this dispute is a small caravan park, with 13 caravan sites, nine flatlets and two chalets, in the…
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03 Jun 2024
By Ashersons Attorneys
Contracting with Trusts – Is a Majority Resolution Valid?

Contracting with Trusts – Is a Majority Resolution Valid?

“Externally, trustees cannot disagree. In the external sphere the Trust functions by virtue of its resolutions, which have to be supported by the full complement of the Trust body.” (Extract from judgment below) A recent Supreme Court of Appeal (SCA) judgment provides yet another reminder to tread carefully when contracting with trusts. Your agreements with a trust will be invalid and unenforceable if the trustees acting for the trust weren’t properly authorised to bind the trust. But must trustee resolutions always be taken unanimously by all of the appointed trustees to be valid, or will a majority decision ever suffice?…
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