The Companies Act of South Africa is legislation that governs the formation, operation, and dissolution of companies in the country. It sets out the legal requirements for company registration, governance, financial reporting, and accountability. The Act aims to promote transparency, accountability, and efficient management of companies. It affects businesses by establishing the legal framework within which they must operate, including the rights and responsibilities of directors, shareholders, and other stakeholders.

In South African commercial law, contracts must meet certain legal requirements to be considered valid and enforceable. These include:

• Consensus: There must be a mutual agreement between the parties on the terms of the contract.
• Capacity: The parties entering into the contract must have the legal capacity to do so, meaning they are of legal age and sound mind.
• Legality: The contract must not be for an illegal purpose or contrary to public policy.
• Formalities: Some contracts, such as those related to the sale of immovable property, must be in writing and meet specific formal requirements.
• Possibility of performance: The terms of the contract must be physically and legally possible to perform.

The Consumer Protection Act (CPA) in South Africa has a significant impact on commercial transactions by providing a framework for the protection of consumer rights. It applies to all goods and services offered in the market and covers aspects such as product liability, fair marketing practices, and the right to fair and honest dealing. The Act requires businesses to provide clear and accurate information about their products and services, and it gives consumers the right to return defective goods, cancel contracts within a cooling-off period, and receive protection against unfair contract terms. Businesses must comply with the CPA to avoid penalties and ensure fair treatment of consumers.