On 1 June 2023, the Johannesburg High Court published its
judgment in the matter of FirstRand Bank Limited t/a Wesbank v
Leon Gregory Govendor (we note that the spelling of
"Govendor" in the neutral citation is different to that
used in the citation of the parties. We have used the spelling as
it appears in the neutral citation). This case provides interesting
insight into the acceptability of credit agreements in electronic
form. We take a look at the law on electronic signatures, the
uncertainty in credit legislation in South Africa, and the
conclusions reached by the court.
The Electronic Communications and Transactions Act
The Electronic Communications and Transactions Act, 2002
("ECTA") applies to "electronic transactions"
or "data messages". ECTA regulates electronic signatures.
Section 13(2) (which was referenced in the Govendor Case)
provides that an electronic signature still has legal force and
effect in electronic form.
