In terms of Section 14, read with Regulation 5 of the CPA (Consumer Protection Act 68 of 2008), a fixed-term agreement with a consumer, who is not a juristic person, should not typically exceed 24 months from the date of signature by the consumer.
A Consumer may then also cancel the agreement upon expiry or even at any other time by giving 20 business days’ notice in writing. If the agreement expires, it will automatically continue on a month-to-month basis unless the consumer expressly directs the supplier to terminate the agreement.
If the agreement is cancelled, the consumer may still be held liable for amounts to the supplier up to the date of cancellation. t The supplier may impose a reasonable cancellation penalty for goods supplied or services provided.
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