Many have found themselves unemployed as a result of the spread
and effects of the COVID-19 virus. While some have chosen to search
for alternate employment, others have chosen to see their
circumstances as an opportune time to take the leap of starting
their own business. As we see an increase in self-employment
ventures in various forms, it might be that entrepreneurs find
themselves needing to contract with third parties on behalf of
their soon to be registered business. In these instances, it would
be essential for one to educated on the use of pre-incorporation
contracts (hereinafter referred to as "PIC").
Forms of PICs
There currently exists two forms of the PIC. One would be in
terms of legislation, namely Section 21 of the Companies Act 71 of
2008 (hereinafter referred to as "the Act") and the other
in terms of the common law stipulatio alteri principle.
Although similar as they both refer to contracts entered into on
behalf of a company yet to be
