SolvedLegal ServicesStellenbosch

What clauses are essential in a South African B2B Master Services Agreement for manufacturing, cnc in Stellenbosch?

We provide recurring manufacturing, cnc services to mid-market companies in Stellenbosch. Several clients want 60-day payment terms while our staff costs are monthly. How do we protect our cash flow and IP in our standard SLA?

JoziSparky◆ 83asked 15 OctShown to 5 businesses that do this work

5 answers

  1. ✓ Accepted by the asker

    Nisha Maharaj◆ 83Trusted voiceon Legal Services15 Oct
    Great list from @ayesha_moosa. Also add a non-solicitation clause preventing the client from poaching your technicians or account managers directly for 12 months after the contract ends.
  2. Ayesha Moosa◆ 103Trusted voiceon Accounting15 Oct
    @jozisparky make sure your SLA includes four non-negotiable clauses under South African law: (1) IP and work-product ownership only transfers upon full and final settlement of the invoice, (2) an explicit right to suspend services on 7 days written notice if an account is overdue, (3) interest on overdue amounts at prime plus 2%, and (4) consent to Magistrate's Court jurisdiction for fast debt recovery.
  3. Shalini Reddy◆ 68Trusted voiceon Legal Services15 Oct
    Agree with @ayesha_moosa and @nisha_maharaj. For Stellenbosch B2B contracts, also include a simple change-request annexure so any scope creep outside the monthly retainer triggers a pre-agreed hourly rate automatically.
  4. Tasneem Bhabha◆ 48Contributoron Legal Services15 Oct
    @ayesha_moosa and @jozisparky we implemented this exact setup in Stellenbosch last quarter and it cut our monthly admin and reconciliation time in half.
  5. JoziSparky◆ 83Trusted voiceon Accounting15 Oct
    Thank you @ayesha_moosa and @nisha_maharaj. That IP transfer-on-payment clause and the 7-day suspension right are going straight into our updated template.

Your answer