FOREIGN JURISDICTION CLAUSES: FOIZE AFRICA V FOIZE BEHEER (752/2011) [2012] ZASCA 123 (20 SEPTEMBER 2012)

Wednesday, September 12, 2012
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The recent Foize decision, handed down by a unanimous full bench of the SCA, highlights a point often forgotten when drafting or negotiating contracts between a South African and an international party: the importance of the jurisdiction clause. In this matter the contract under scrutiny of the court was a licensing agreement between a number of Dutch companies, various Dutch businessmen and a South African company which had been incorporated with the specific purpose of proceeding with a business venture between the parties. A dispute arose regarding which of the Dutch companies held the necessary intellectual property for the South African company to conduct its business in South Africa.

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