Abstract
LL.M. (Commercial Law)
The Constitution of the Republic of South Africa is the supreme law in the land. Thus, all law is subject to the Constitution and this inevitably includes the law of contract. The South African law of contract has been inherited from common law, namely Roman–Dutch law and has been applicable in South Africa to date. The Constitution states that the common law should be developed when it is not in line with the provisions of the Constitution. The values underpinning the Constitution are human dignity equality and freedom and these values must therefore be reflected in contractual relations. The common law principle of pacta sunt servanda, which means that agreements must be kept, at times this principle yields unjust and unreasonable results. The strict adherence to pacta sunt servanda has led to difficulties. The unenforceability of these contract terms has been shown in reported case law to stem from standard term contracts, unequal bargaining power and from persons who contract out of necessity. This dissertation concludes that South African law of contract and the current legal treatment of balancing contract law with constitutional values is unsatisfactory. The Bill on the Control of Unreasonableness, Unconscionableness, or Oppressiveness in Contracts or Terms which was tabled in 1998 should be revised and legislated, so as to regulate contracts and infuse the law of contract with the constitutional values of human dignity, equality and freedom.