The most common legal mistakes businesses make at year end
The Silly Season is upon us, and businesses are pushing to get as much business done as possible before December 15th.
Your sales staff are pushing to sign as many deals as they can to earn commissions by December. Your admin staff are starting to think about Christmas shopping lists more than the admin. And in the mad rush, contracts don't get reviewed properly. Here are the most common legal mistakes businesses make in Q4 that they pay for in the following year.
The most common work our firm does in Q1 and Q2 is litigation from contracts gone wrong in the previous Q4.
As the year draws to a close, businesses are often under pressure to finalise transactions, conclude supplier agreements and get everything in place before the December break. In the rush, contractual terms can receive less attention than they deserve. An agreement signed in haste can leave your business exposed to unfavourable payment terms, automatic renewals, restrictive termination clauses, unexpected liabilities or obligations that become difficult and expensive to escape.
Before signing a significant agreement, renewing an existing contract or committing your business to a new commercial arrangement, it is worth ensuring that the terms have been properly considered.
The other most common legal issue in Q2: outstanding debts.
In the holiday period, debtors get away with defaulting on payment. They're too busy spending on December expenses. It's only in March that they start considering paying off some bills - and it's the creditors who are the loudest and most aggressive who get paid first. This can mean your business waits up to 4 months or more to get payment from a debtor, which hurts your cashflow.
If you want to have a chance of recovering debts, you need to pursue them aggressively.
Maybery Inc. advises commercial clients in the review, negotiation and enforcement of commercial contracts, and litigates complex commercial disputes. If your business has an agreement or debt collection that needs attention before year-end, we would be happy to advise you.
Protecting SA Business Owners Since 2019.
As commercial attorneys in Pretoria, we have advised commercial clients on all legal aspects of business, including contracts, debt collection and urgent High Court litigation.
Contact us for experienced advice on your commercial legal problem.
Rating as at October 2026.
The above information is for illustrative purposes only and does not take into account your specific circumstances. It therefore does not constitute legal advice. Please contact us for comprehensive advice to address your circumstances. Under no circumstances should any person use the above information in an attempt to circumvent the provisions of legislation or contract, or to cause damage to any other person. Always ensure you and your company are in compliance with the law in all dealings. This information is accurate as of the date of publication. All persons, characters, businesses and events depicted herein are fictitious and are used for illustrative purposes only. Any resemblance to actual persons, living or deceased, real businesses, organisations, events or circumstances is purely coincidental and unintended.
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