Whose Mandate Is It Anyway?

Settlement agreements are an integral part of the dispute resolution process. Whenever there is a dispute, whether in the CCMA or internally in the workplace, the parties to the dispute are encouraged to settle disputes to avoid drawn-out and costly dispute processes. Parties can negotiate independently or get representatives to negotiate on their behalf. In the case where there are representatives, it is usually accepted that they are empowered to negotiate and conclude settlement agreements on behalf of the parties in accordance with the instructions of those they represent; this is referred to as a mandate.

Once a settlement agreement is concluded, it is binding on the parties regardless of whether it was signed by the parties or their representatives. What happens then if one party disputes the validity of the settlement agreement on the basis that their representative acted without and outside their mandate?