In South Africa, when a company is being formed (called "pre-incorporation"), sometimes people make contracts on behalf of that company before it officially exists. These contracts can include an "implied warranty," which is a promise that the people making the contract have to follow.
Here’s a simple breakdown:
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Implied Warranty: This means that even if the company isn't officially created yet, the people who make the contract are promising that the company will accept it once it's formed.
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Responsibility: If the company is never formed or refuses to accept the contract later, the people who made the contract might be responsible for fulfilling its terms.
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Legal Protection: This implied warranty helps protect everyone involved because it ensures that there is someone who can be held accountable if things go wrong.
So, in short, in South Africa, if you make a contract before a company is officially set up, the people involved promise to make sure the contract will work out, even though the company isn’t there yet.