The importance of entering into a contract while being aware of all the material facts, as well as equipped with all the necessary information to validly consent to the transaction, cannot be overemphasized. However, it is still possible for people to be lulled into a false sense of security due to any fraudulent misrepresentation on the part of the other contracting party, or as a result of his or her silence.
It is imperative to gain clarity for laypersons as to when a party cannot remain silent and is required to speak, and more importantly when the failure to do so will result in liability. South Africans who do not have a specialised knowledge of the law of contract enter into various agreements on a ‘good faith’ basis daily.
These agreements are the centre of South African culture, and are founded on the basis that all parties involved will negotiate and contract with good intentions and on good faith and ubuntu.