Most South African businesses sign contracts without reading them fully. ClauseGuard scans your vendor contracts, NDAs, and service agreements clause by clause — flags the risks, cites the relevant SA Act, and estimates your financial exposure in rand. In under 5 minutes. No legal team required.
Most vendor agreements and service contracts in South Africa are drafted by the party with the most negotiating power — which is rarely you. Standard clauses routinely include:
None of these are illegal. All of them are negotiable — if you know they are there before you sign.
PDF or Word document. Drag and drop or click to browse. No account needed for your first scan.
Our AI checks for liability traps, uncapped indemnification, auto-renewal hooks, IP ownership grabs, POPIA exposure, and 8 more risk categories — all mapped against relevant South African legislation.
Every risky clause explained in plain English. The specific SA Act and section it conflicts with. A realistic rand estimate of your financial exposure. And exactly what to ask for when you negotiate.
This is the actual output from scanning the National Treasury General Conditions of Contract — a public domain document used across South African government procurement. No actors. No invented results.
Scanned 10 May 2026 · 12 issues found · 12 missing clauses
This South African government procurement contract contains several highly one-sided provisions favouring the government purchaser. Critical risks include unlimited liability exposure, unilateral termination rights without cause, severe penalties without caps, and broad indemnification. The contract heavily favours the government entity with minimal supplier protections.
Estimated financial exposure: Unlimited — no contractual cap on total liability
Act reference: South African law of contract — common law
ZAR exposure: Unlimited — no cap
While there appears to be a liability cap at the contract price, the exception for "repairing or replacing defective equipment" creates unlimited liability exposure. Any defect could trigger costs far exceeding the contract value, with no upper limit on your financial exposure.
Act reference: Prevention and Combating of Corrupt Activities Act 12 of 2004
ZAR exposure: Full contract value + 10-year debarment
The government can terminate based solely on its own "judgment" of corrupt practices — no proof, court finding, or objective standard required. This gives them unlimited discretion to cancel and potentially blacklist you from government work for up to 10 years.
Act reference: Conventional Penalties Act 15 of 1962
ZAR exposure: ~27% of contract value per 90-day delay at prime (11%+)
Late delivery triggers automatic daily penalties at the prime interest rate with no maximum cap. A 90-day delay means roughly 27% penalty on the contract value — plus potential termination and cover purchase charges on top.
and 9 more clauses in the full report
Source: National Treasury General Conditions of Contract (public domain). Scanned 10 May 2026. This is standard ClauseGuard output — your report will reflect the specific clauses and risks in your own contract.
Your contract will look different. Your risks will be specific to what you signed. Try it free — no account required.
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See full pricing →ClauseGuard reports are for informational purposes only and do not constitute legal advice. Consult a qualified attorney before signing any contract.info@clause-guard.co.za