Business Law 1 2023 Study Guide

DIPLOMA IN LAW: PARALEGAL STUDIES
BUSINESS LAW 1 AND COMMUNICATION SKILLS

STUDY GUIDE
2023
Faculty of Law
Qualification ID 19630
NQF Level 6
Revised by Mr Giles Millard
Copyright 2021 © Faculty of Law: Paralegal Studies

UNIVERSITY OF JOHANNESBURG
P.O. Box 524, Auckland Park, 2006
Tel: 0115592758 / 3754
Fax: 0115592399
All rights reserved

Diploma in Law
(Paralegal Studies)
Module 2
Business Law 1 and Communication Skills
2
All rights reserved Giles Millard
Module 2
Business Law 1 and Communication Skills
Table of Contents
BUSINESS LAW 1 AND COMMUNICATION SKILLS .................................................................................. 1
Module 2 ................................................................................................................................................... 2
Introduction.................................................................................................................... 6
Prescribed and recommended reading ......................................................................... 7
Study schedule ............................................................................................................... 8
Unit 1 ............................................................................................................................ 10
1.1 Introduction ............................................................................................................................... 10
1.2 What is a paralegal? ................................................................................................................. 13
1.3 The paralegal in contemporary South Africa ....................................................................... 16
1.4 A code of conduct: The paralegal and ethics ...................................................................... 18
1.4.1 Introduction ...................................................................................................................... 18
1.4.2 What are ethics? .............................................................................................................. 22
1.4.3 Aim of the code ............................................................................................................... 23
1.4.4 The duties of the paralegal ........................................................................................... 23
1.5 Legal Practice Bill. .............................................................................................................................. 29
Unit 2 ............................................................................................................................ 37
2.1 Oral communication ................................................................................................................. 38
2.1.1 The telephone conversation .......................................................................................... 38
2.1.2 The consultation .............................................................................................................. 40
2.2 Written communication ........................................................................................................... 45
2.2.1 General remarks .............................................................................................................. 45
2.2.2 Three communicative requirements ............................................................................ 46
2.2.3 The formal letter ............................................................................................................. 49
2.2.4 Taking a statement ......................................................................................................... 50
2.2.5 Drafting an affidavit ........................................................................................................ 54
2.3 Self-evaluation questions ........................................................................................................ 59
Unit 3 ............................................................................................................................ 59
Administrative skills..................................................................................................... 59
3.1 Introduction ............................................................................................................................... 59
3.2 Client information .................................................................................................................... 59
3.3 The reference number ............................................................................................................. 60
3.4 The day-book ............................................................................................................................. 61
3
3.5 More about filing and the follow-up work ............................................................................ 61
3.5.1 What is filing? ................................................................................................................... 61
3.5.2 What must be filed? ........................................................................................................ 61
3.5.3 The following equipment is needed for filing: ........................................................... 61
3.6 Mailing......................................................................................................................................... 62
3.6.1 Incoming mail ................................................................................................................... 62
3.6.2 Outgoing mail ................................................................................................................... 63
3.7 Telephones ................................................................................................................................. 63
3.8 Technology ................................................................................................................................. 64
3.8.1 Photocopying .................................................................................................................... 64
3.8.2 Faxing ................................................................................................................................ 64
3.9 Stationery and other necessities ............................................................................................ 64
3.10 Self-evaluation questions ....................................................................................................... 65
Unit 4 ............................................................................................................................ 65
Strategic planning ........................................................................................................ 65
4.1 The business plan ...................................................................................................................... 66
4.1.1 The elements of a business plan ................................................................................... 66
4.2 Types of business ...................................................................................................................... 69
4.2.1 A sole trader ..................................................................................................................... 70
4.2.2 Partnership ....................................................................................................................... 70
4.2.3 A Close Corporation......................................................................................................... 71
4.2.4 A company ........................................................................................................................ 72
4.3 The budget ................................................................................................................................. 77
4.3.1 Definition .......................................................................................................................... 77
4.3.2 Income and expenses ...................................................................................................... 77
4.3.3 What period of time should a budget cover? .............................................................. 77
4.3.4 How does one calculate expected expenses and income? ........................................ 78
4.3.5 What does the organisation spend money on? ............................................................ 78
4.3.6 How much does each category cost? ............................................................................ 79
4.4 Bank (current) accounts .......................................................................................................... 81
4.5 Financial records....................................................................................................................... 84
4.5.1 Receipt book ..................................................................................................................... 84
4.5.2 Petty cash ......................................................................................................................... 85
4.5.3 The cash book .................................................................................................................. 86
4.6 Marketing and advertising ....................................................................................................... 89
4.7 Taxes ........................................................................................................................................... 91
4.7.1 Sources .............................................................................................................................. 91
4
4.7.2 Who must register as a tax payer? ................................................................................ 92
4.7.3 How must a person register as a tax payer? ............................................................... 92
4.7.4 The duties of an employer ............................................................................................. 92
4.7.5 Provisional tax .................................................................................................................. 93
4.7.6 Value-Added Tax .............................................................................................................. 95
4.8 Licences ...................................................................................................................................... 98
4.9 Regional service levies ........................................................................................................... 100
4.10 Self-evaluation questions ..................................................................................................... 101
Assessment criteria ............................................................................................................................ 102
Conclusion ............................................................................................................................................ 103
Bibliography ......................................................................................................................................... 104
PLEASE MAKE USE OF THE LECTURE SLIDES AVAILABLE ON BLACKBOARD AS THEY WILL
CONTAIN ADDITIONAL INFORMATION.
5
Introduction
The National Diploma in Paralegal Studies, a three-year course, consists of ten modules.
This module, the fourth one of ten, explores Business Law 1 and Communication Skills.
Although these modules may deal with different aspects of South African Law, you
should never dispose of any of the study material, even when you have finished the
work and written a test or exam on it.
The modules refer back to one another. For example, a unit in this module may refer
back to a unit in module one. Your study guides, textbooks and notes may even be useful
references when you begin to work as a paralegal, so keep them.
The original authors of this study guide were Elsabé Steenhuisen, Elize Radley and Corlia
van Heerden. The guide was now updated by ES Fourie and MM Botha. The study guide
leads you through some of the fundamental aspects of South African Law. In your mind,
you are probably visualising mounds and mounds of laws and case studies that you will
have to memorise. Remember though, that theory without practice is of very little use.
Do not only try to memorise important facts. There are many activities in these study
guides that ask you to apply what you learn. This is very important because the work
you will do one day is very practical. If you have a friend or relative in the legal
profession, talk to him or her. You could even accompany them to their place of work
to see what the legal profession is all about. Try to use examples from your own
experience to illustrate your answers to the various activities. Above all, once you feel
you have mastered or understand a theoretical point, see if you can apply it to some
daily activity. Finally, remember that the skills you acquire through your studies, like
certain study and planning skills, will enable you to do many things in your future
career.
As you glance through the study material, you will notice that the authors have used
symbols or icons to catch your attention. Different icons are used because the authors
want to draw your attention to different things. These symbols will now be explained
below.
Learning outcomes: A learning outcome has three components: what you

can do (skills), what you know (knowledge) and what your attitude towards something
is (attitude). When you see this icon, you will know that the authors want to draw your
attention to something for which you need all three things mentioned above. This icon
will always be used at the beginning of every module AND every unit.
Activities: Remember, learning includes what you can actually do. When
you see this icon, you will know that the authors want you to try an experiment, to
convey an experience or to apply something that you have learned. Take these activities
seriously, since they are often wonderful opportunities for learning a skill. This icon will
6
also be used to draw your attention to a particular law or case study. Remember that
these laws or cases are included in your study material.
Self-evaluation: Once you have completed all the activities in a module,

you are probably ready to evaluate or check yourself. The questions or activities you
are required to do in these sections will help you determine whether or not you have
learned the material, in all three senses of the word.
Take note or Definition: When you see this icon, pay careful attention. The
authors probably want to provide you with a definition, highlight an important point or
refer you to additional information.
Integration: Remember the instruction above not to throw away study

material at any stage. When you see this icon, you will be referred to another section
or another module to get a fuller picture regarding an aspect of your studies.
Prescribed and recommended reading

There is no prescribed textbook, however you can supplement your notes from other
sources. For example, you may read Companies and other business structures Davis and
Geach.
The study guide is based on various sources and also focuses on the relevant experience
gained from being in practice. You will also be required to draft legal documents, such
as case sheets, affidavits and letters of demand. These precedents have been included
in the recommended reading.
Scheme of work
You need to plan your year well in advance in order to give yourself enough time
to work through the study material properly. You have one year in which to complete
all four modules. The exact dates for tests and other important events are provided in
the general information guide included in your study material.
7
Study schedule
Unit Week
1. The paralegal movement in South Africa ...................
2. Written and oral communication ...................
3. Administrative skills ...................
4. Strategic planning ...................
Revision ...................
Module outcomes
When you have completed this module, you should be able to:
➢ explain the role and structure of the paralegal movement in South Africa
➢ define the role of paralegals, reflect on your own definition thereof and explain
why you emphasise certain aspects of the profession
➢ demonstrate knowledge of and insight into f legal ethics
➢ take professional responsibility for the client’s legal matter by acting according
to a relevant legal ethical code
➢ demonstrate a professional legal attitude
➢ explain different options by applying your written and oral communication skills
➢ organise and manage your role as a paralegal professionally by applying your
administrative skills and knowledge of money matters and your organisational and
managerial competencies
➢ effectively and appropriately communicate in written and verbal format with the
different role-players in the legal process by applying your communication skills.
You will also be able to show insight into the choice of your communication actions
and skills
➢ develop and become a responsible citizen locally and nationally if you apply your
communication skills effectively
➢ identify, analyse, advise and resolve your community’s legal and socio-economical
problems on a paralegal level
➢ explain different options to members of your community using the analytical,
critical and problem-solving methodology underlying the rendering of legal
services
➢ participate in the paralegal network nationally and globally, ensuring access to
justice
8
➢ explore employment and career opportunities by using your communication skills
when doing fieldwork, assignments and interviews during your interactions with
the relevant role-players in the legal process
➢ develop entrepreneurial skills, enabling you to be employable at a paralegal
business by applying the principles of administration:
▪ handling money matters and marketing
▪ utilise your knowledge of the different types of businesses to enhance your
entrepreneurial skills
➢ do self-assessment of your answers to certain activities and self-evaluation
questions
9
Unit 1
The paralegal movement in South Africa
Upon completion of this unit, you should understand what a paralegal is

and the role he or she plays in the South African legal process. You should also be able
to:
➢ explain what a paralegal is and define the role of a paralegal

➢ explain the role and structure of the paralegal movement in South Africa and its
role in the legal system
➢ define the code of conduct, accept the notion of legal ethics and take professional
responsibility for the client’s case by acting according to a relevant legal ethical
code
➢ criticise legal problems and sets of facts
➢ apply your knowledge and insight when advising and referring the client
➢ demonstrate a professional legal attitude.
1.1 Introduction
This unit is divided into four sub-units:
➢ sub-unit 1 introduces you to the concept of a paralegal

➢ sub-unit 2 explains what a paralegal is
➢ sub-unit 3 explains the role of the paralegal in the South African legal process
➢ sub-unit 4 deals with the code of conduct and the ethics of legal practice.
In South Africa it has always been difficult for poor people to get access to justice.
Legal procedures are complicated, take a long time and often need lawyers, who are
very expensive. In South Africa there are approximately 17 000 lawyers for 49 million
people and the main obstacle between available expertise and the need for legal aid is
high costs. There is an increasing demand for people who play the role of providers of
information and assistance. Paralegals play an important role in providing access to
justice in a transforming system. The Department of Justice endeavours to find ways of
providing access to the poor rural people and has recognised the importance of involving
paralegals. The history of paralegals in South Africa dates back to the days of the
Struggle, when the paralegal movement acted in an advisory capacity.
People now enjoy many new rights in terms of the Constitution, the Bill of Rights
and other new laws, but they can only exercise these rights if they have access to the
information and assistance to do so. The general name for people who act as legal
advisers and educators for communities is “paralegals”. Paralegals play an important
role in providing access to justice in a transforming justice department.
10
Paralegals often represent disadvantaged groups in the South African society. It is
important that recognition be given to paralegal practitioners who offer primary legal
services to disadvantaged communities, particularly in rural areas. Paralegals are
generally drawn from the community and are therefore representative of the
community and geographically accessible. Their closeness to the community enables
them to understand its particular needs.
Activity 1.1
Explain why having the best Constitution in the world does not necessarily mean that a
country’s citizens enjoy the rights they are supposed to have.
Activity 1.2
Look up the meaning of the following words: “lobby” (used as a verb) and
“conveyancing”. Explain what a lobbying group is and give at least three examples of
such groups in South Africa.
Explain what “conveyancing” is in the legal sense of the word.
The most important organisation that organised and provided support for
paralegals was the National Community-Based Paralegal Association (NCBPA) – an
organisation that represents nine (9) provincial paralegal associations in South Africa
The NCBPA pursued the government to provide support for recognition of

paralegals. Its aim was to give people wider access to justice by formally drawing
paralegals into the justice system. They proposed a National Paralegal Institute (NPI) to
develop new policies and proposals for the justice system and to oversee training and
qualifications standards for paralegals. Finally, the NPI was established by the NCBPA
as its own project in April 1999. It is important to note that the NCBPA has been
repealed and succeeded by the National Alliance for the Development of Community
Advice Offices (NADCAO). Also see PALSA (Paralegal Association of South Africa)
The NPI is an evolving and consolidating initiative of the paralegal sector with a distinct
role of capacitating paralegals to make them more effective in their service delivery to
communities.
In this regard, it is a cutting-edge initiative for the Association and therefore needs to
rely heavily on well-researched and strategically thought out interventions to enhance
its internal capacity to withstand the developmental and empowerment challenges
posed by communities. A research function will help the NPI to tighten its focus and
ensure that its interventions are consistent with its planned objectives of presenting
quality training that fits in with nationally expected standards of training and education
11
focusing at transformation and consolidation of democracy. The research will also help
the Association to keep abreast of the legislative formation process that has
implications for paralegals as part of the legal fraternity.
The objectives of the NPI are:
➢ to ensure the process of setting up standards and qualifications for the legal sector
includes paralegal practitioners
➢ to inform and monitor the legislative processes on the Legal Practice Bill and
ensure that its promulgation and application as an Act has positive significance to
paralegal work
➢ to inform the NPI on training options and methods relevant to paralegal needs
➢ to conduct periodic reviews that inform training to ensure it conforms well with
expected standards
➢ to inform networking processes that seek to inform national standards on training
and service delivery
➢ to influence local, regional and international debates in the legal and human rights
sectors as well as on transformational issues relevant to paralegal work.
The activities are focused on:
➢ Participating formally in all meetings of the Sector Education and Training

Authority and Standard Generating Body in order to influence setting of standards
that conform to the South African Qualifications Authority regulations.
➢ Engaging in active lobbying for formal recognition of the NPI as a service provider
in the education and training sector.
➢ Engaging in continuous lobbying of the legal fraternity and other decision-making
agencies like Cabinet members in an effort to consolidate on the legal recognition
of paralegal practitioners and their work.
➢ Lobbying other relevant sectors such as the departments of Welfare, Labour, Local
Government and some quasi-statutory bodies for recognition agreements on
paralegal work.
➢ Conducting surveys on paralegal needs to inform their capacity-building
programmes.
➢ Conducting ongoing and periodic skills audits to match training needs with training
interventions.
➢ Setting up a database of agencies with training and education focus relevant to a
paralegal sector.
➢ Providing the paralegal sector with regular information on local, regional and
international issues that relate to capacitating the sector.
➢ Providing details on the work outcomes of the unit.
The NPI strives to achieve the following results:
➢ Permanent presence of the sector in all processes of standard setting.

➢ Registration of the NPI as a training institution.
➢ Formal recognition of paralegal work through promulgation, as well as by the legal
professional, other state departments and by quasi-statutory bodies.
12
➢ Assessment/survey reports produced indicating short/medium- and long-term
needs of paralegals.
The training department aims to respond to the capacity development needs of the
paralegal sector through its own and recognised training intended to help paralegals
provide effective and efficient service to communities.
Its objectives are:
➢ To provide relevant skills development interventions to the paralegal sector in

areas of access to justice, legal and casework, outreach education and
empowerment, lobbying and advocacy, community development, office
administration and management.
➢ To integrate different training approaches into one making it relate with national
norms and standards.
➢ To ensure delivery of training is guided by quality materials and conforms to
accreditation requirements.
➢ To provide education and training through materials that are adaptable to the
training needs of paralegals and client communities.
➢ To provide training for all levels of paralegals structured into different levels and
relevant to the medium- and long-term needs of paralegals and communities.
➢ To establish a training centre with appropriate facilities to support the range of
training programmes.
➢ To develop managerial expertise within communities to help them to effectively
manage the affairs of Advice Offices.
➢ To capacitate paralegals’ support structures (Advice Office management
committees, Provincial and National secretariats) with relevant and appropriate
skills to enable them to respond effectively to paralegal needs.
1.2 What is a paralegal?

Read the Introduction again as well as the proposals put forward in the Discussion Paper
under 1.3 below. In terms of section 1 of the Legal Practice Bill, 2002 para-legal
practitioner” means any person registered and enrolled to render legal services in terms
of section 13 of this Act. Sections 12 and 13 of this Bill provide the following:
Part III – Registration and enrolment of para-legal practitioners
12. Minimum qualifications and training requirements applicable to para-legal

practitioners
(1) In order to be registered, enrolled and authorised to render legal services as a para-
legal practitioner, the person concerned must have satisfied the qualification and
training requirements for para-legal practitioners as may be prescribed by the Minister
upon the advice received from the National Council.
(2) The qualification and training requirements as contemplated in subsection (1) must
be determined with due regard to the need for para-legal practitioners to be able to-
(a) communicate effectively, orally and in writing;
13
(b) assist clients to comply with administrative requirements, such as the
completion of official forms;
(c) understand fundamental legal concepts;
(d) provided basic legal advice;
(e) understand the circumstances in which it is appropriate to refer matters
to a legal practitioner;
(f) advise and educate members of communities on human rights issues;
(g) in the case of qualifications to provide services in a specialised area of
law, to research, understand and apply the relevant law;
(h) understand and apply rules of professional conduct and practice
management; and
(i) promote access to justice.
13. Application for registration and enrolment as a para-legal practitioner
(1) Any person who has met the requirements contemplated in section 12 may apply
to the Para-legal Forum to be registered and enrolled as a para-legal practitioner
in the prescribed manner.
(2) If not satisfied that the relevant requirements have been met, the Para-legal
Forum must refuse to register the applicant and notify the applicant in writing
of this decision and the reasons for it.
(3) If satisfied that the relevant requirements have been met, the Para-legal Forum
must register the applicant and notify the Society in the prescribed manner that
it has done so.
(4) Upon receiving the notice contemplated in subsection (3), the Society must enter
the name of the applicant on the roll of para-legal practitioners in the prescribed
manner.
Activity 1.3
Write your own definition of a paralegal, taking into consideration your own special
circumstances.
There are many different ways of describing a paralegal. In India, the Philippines and
parts of Africa, ordinary residents started working as barefoot doctors and barefoot
lawyers because of a great shortage of medical and legal services, especially in rural
areas.
They went from village to village seeing to the needs of their people after they received
what rudimentary training they could get. In this way they worked like doctors and
lawyers, the names paramedical and paralegal were used to describe the kind of work
they were doing, and, in the case of a paralegal, this was subsidiary legal work.
A paralegal is a qualified person, who:
➢ is not a lawyer
14
➢ cannot assist people in court and other tribunals until he or she has acquired the
relevant qualifications and accreditation required by statute but who is either
community-based or works within some organisation or structure
➢ has basic knowledge of the law and its procedures through education, training or
work experience
➢ knows about conflict resolution procedures
➢ has the necessary motivation, commitment, attitude and skills to help people and
communities with their legal, administrative, social and developmental problems,
while at the same time empowering them to handle these matters on their own in
future.
Activity 1.4
You have now read a more extensive definition of a paralegal. Please note that there
are different kinds of paralegals. Stop and think about your own circumstances. Once
you qualify, where do you think you will offer your services as a paralegal?
The following main categories give you an idea of the different kinds of
paralegals:
➢ There are those people who are salaried employees in private law firms who act
as interpreters or statement-takers, and who give advice to clients on minor
inquiries. These people are also referred to as paralegals. Examples are attorney
law firms, university law clinics, community centres of Legal Aid South Africa and
legal resources centres.
➢ There are people who are employed in union offices, who give advice to union
members either on purely legal or labour-related matters. They also refer to
themselves as paralegals and may or may not receive remuneration for their
advice.
➢ The third category of paralegals is that of people who are based in their
communities and who are appointed by their communities.
They work and are involved solely with their communities. They are controlled by
community-based management structures and they are accountable and
responsible to their communities and these structures. Examples are advice
offices and several NGOs.
➢ There are people who work on their own as business people delivering services on
payment to those who require their services. Examples are lay assessors to the
State, mediators, debt collectors and lay maintenance counsellors.
15
Activity 1.5
Look again at your own definition of a paralegal and reflect on your interpretation of
what a paralegal is. Now explain why you:
➢ have left out certain aspects, and list them

➢ have included other aspects, and list them.
1.3 The paralegal in contemporary South Africa
The present position is that lobby groups want a justice system where legal clinics
and advice offices staffed by lawyers and paralegals will be available to all. They are
negotiating with the Department of Justice, the Legal Aid Board and lawyers’
associations to set up a system for accrediting paralegals who would then have the right
to represent clients in certain cases. The NPI also negotiates indemnity insurance for
paralegals with different organisations. It is hoped that paralegals will eventually
become the link between people and the legal system that will ensure justice for all.
Their role can expand from giving basic advice and information to representing people
in simple cases, negotiations and other legal procedures. The Legal Aid Board has
established justice centres and paralegals as part and parcel of the system. These
centres have been established for example in Kimberley, the Western Cape and on the
East Rand. It is envisaged that more of these centres will be established in the future.
The former Minister of Justice and Constitutional Development, Dr Penuell

Maduna, a qualified attorney, was reported on page 12 in the 1999 August edition of
the De Rebus (the magazine for the attorneys’ profession) to have the following view
on paralegals:
“Interviewer: Do you envisage a greater role for paralegals? If so, what role do you see
them playing?
Answer: I believe that paralegals have an extremely important role to play in providing
legal services to indigent persons. Already paralegal advice offices have been
established all over the country and are providing services, even in the most remote
areas. Paralegals are accessible to disadvantaged communities. They communicate well
with members of the community and understand their problems because they
themselves are generally members of the community. They are usually well trained,
provide excellent first-hand advice and know where to refer people with problems
which they, as paralegals, cannot resolve.
I believe that paralegals can also provide excellent support services for lawyers, both
in private practice and the public service. Attorneys have used paralegals in
16
conveyancing for many years and could use them in other fields of practice. Paralegals
may also play an important role in the courts in future. Prosecutors may then have
paralegal assistants. Paralegals can be trained to be maintenance officers, clerks of the
court or court managers. There are so many roles that they can play in improving the
justice system.”
In the Discussion Paper on the Transformation of the Legal Profession, it is

recognised that the legal profession has to be transformed in order to be able to respond
properly to the needs of all the people of South Africa. The Discussion Paper was
prepared by the Policy Unit, Department of Justice and Constitutional Development for
discussion in November 1999. We hope that this complex issue will not be resolved on
an ad hoc basis as Professor van der Walt warned against in TSAR (the legal journal of
the Faculty of Law, UJ (formerly RAU), Vol 1, 1988: 45).
The change that is desired is change that will improve the circumstances of the people
of South Africa and that reflects the values enshrined in our Constitution. The main
challenges identified are the need to make the legal profession representative of the
diversity of South African society and the need to make the legal profession more
accessible to the public. The legal profession is plagued by a number of problems and
abnormalities, which mainly boil down to inequality, whether based on race, gender,
elitism, geographical reasons, historical reasons or professional jealousy. The Discussion
Paper lists the lack of recognition of the role played by paralegal practitioners as a
factor that prevents people from having access to legal services. It is important that
recognition is given to paralegal practitioners who offer primary legal services to
disadvantaged communities, particularly in rural communities.
The following issues regarding paralegals in the legal profession as set out in the
Discussion Paper are important:
➢ paralegal practitioners should be recognised and regulated by statute, as they

have been rendering legal services to communities for many years
➢ a legal practice registrar must maintain a central roll of legal practitioners and
paralegal practitioners
➢ a legal practice fidelity fund is proposed to compensate members of the public in
respect of monies misappropriated by legal practitioners and paralegal
practitioners, and to utilise its funds to promote the attainment of high
professional standards of legal practice
➢ the high court should continue to be the ultimate regulating authority in respect
of legal and paralegal practitioners, and all professional organisations and the
above statutory authorities should have standing to bring matters concerning
practitioners before the court.
17
Alternatively, a National South African Legal Practice Council should be created
which could:
➢ prescribe qualifications for admission to legal and paralegal practice, subject to

relevant legislation
➢ maintain a roll of registered legal and paralegal practitioners
➢ prescribe and levy annual fees for licences to practice
➢ collect interest on trust accounts for transmission to the Fidelity Fund and issue
Fidelity Fund certificates
➢ deal with complaints of malpractice through regional complaints tribunals and the
office of a national ombudsman.
The Discussion Paper referred to above has resulted in the Legal Practice Bill, which
recognises paralegals as a part of the legal profession.
Activity 1.6
Students registered for paralegal courses should also be required to do a minimum

number of hours of non-remunerated community service to obtain their qualifications.
The range of options would be similar to that for law students, such as law clinic and
advice office work; street law teaching; manning citizen advice desks at courts, working
in pre-trial services offices at courts, assisting in maintenance matters, providing victim
support services, acting as intermediaries for child witnesses, assisting public
defenders, prosecutors and family advocates.
You have now been exposed to some options for helping your community. Investigate
any one of these options in your community and see if you can contribute something.
Activity 1.7
➢ In your own words, summarise the role and structure of the paralegal movement
in South Africa.
➢ In your study group or with a fellow student, explain and discuss your views of the
paralegal movement.
1.4 A code of conduct: The paralegal and ethics
1.4.1 Introduction
To date, there is no formal code of conduct for paralegals. The LSSA (Law Society of
South Africa) has only recently accepted a code of ethics for legal practitioners (De
Rebus: p. 8 May 2006). The code states the following:
18
“CODE OF ETHICS FOR LEGAL PRACTITIONERS
All legal practitioners shall
➢ honour, respect and promote the values enshrined in the Bill of Rights;
➢ maintain the highest standards of honesty, integrity and independence at all
times;
➢ act with care and skill, honour undertakings and maintain the reputation and
high standards required in the performance of their duties;
➢ conduct themselves with courtesy and respect towards participants in
proceedings, especially persons without legal representations, so as to ensure
compliance with the rules and procedures for the fair conduct of such
proceedings;
➢ maintain the highest standards of professionalism and promptly respond to
correspondence and messages from colleagues and members of the public;
➢ respect the legal privilege and confidentiality that exists with clients and former
clients;
➢ subject to the laws as regards contingency fees, and the rules and guidelines as
regards advertising not engage in any form on activity that may be constructed
as touting;
➢ extend to all colleagues, judges, academics, professionals, litigants and
students, including persons from foreign jurisdictions, cordiality and respect at
all times.”
Chapter 4 of the Legal Practice Bill, 2002, provides the following:
MAINTENANCE AND ENFORCEMENT OF GOOD AND ETHICAL CONDUCT

Part I – Introductory provisions
41. Codes of Ethics
(1) The National Council may develop a Code of Ethics to be made applicable to all
legal practitioners and juristic entities.
(2) The Para-legal Executive Committee may develop a Code of Ethics to be made
applicable to all para-legal practitioners.
(3) A Code of Ethics may contain different provisions for different categories and
subcategories of practitioners.
(4) The National Council and the Para-5 legal Executive Committee must take all
reasonable steps to-
(a) publicise the existence of any Code of Ethics developed by them in terms of
this Act;
(b) inform the public of the content of such Codes of Ethics including its
enforcement procedures; and
(c) inform the public of how and where to obtain a copy of such Codes of Ethics.
42. Binding nature of the Code of Ethics
19
Unless exempted from a particular Code of Ethics or from particular provisions of a Code
of Ethics, all practitioners and juristic entities admitted or registered, enrolled or
established in terms of this Bill, are bound by any Code of Ethics developed in terms of
this Act.
43. Non-compliance with Code of Ethics
A practitioner who, or juristic entity which does not comply with the provisions of a
Code of Ethics developed in terms of this Act may be subjected to disciplinary
proceedings as contemplated in Part II.
Activity 1.8
➢ Write down the following names of professions, leaving enough space beside or
under each one to make a few notes: doctor, nurse, educator, psychologist and
lawyer. Under each one write down two things you would expect a person to do for
you as a professional worker. Then write down two things that you would NOT want
them to do should you go to them for help. Now look over your notes. Have you
ever, in your opinion, been treated unfairly or in a manner you would not have
expected of one of these people? If so, you have every right to feel angry and should
certainly take the matter to the professional body concerned. If not, then the
reason for this is because these people take what they do very seriously and believe
that they have to behave according to certain rules and principles. Do not throw
away this sheet of notes just yet.
Activity 1.9
Look again at your notes on your expectations of the doctor, nurse and other
professionals. Look up the meaning of the word “ethics”.
Now find out and write down the name of the professional bodies that ensure that
people who belong to the above professions behave ethically.
The NCBPA drafted a Draft Code of Conduct for its members, which was
presented in January 1998 at the National Legal Aid Forum, organised by the
Department of Justice. Here is an extract from that draft:
Purpose
It is expected that all paralegals affiliated to the National Paralegal Institute (NPI) shall
comply with this Code of Conduct.
20
The Code should act as a guideline to paralegals as to what is expected of them from
an ethical point of view, both in their individual conduct and their relationship with the
constituency they serve. Compliance with the Code can be expected to enhance
professionalism and help to ensure confidence in the delivery of paralegal services.
The primary purpose of the Code is to promote exemplary conduct. Notwithstanding

this, paralegals shall be guilty of misconduct in terms of this Code, and may be dealt
with in accordance with the relevant sections, if they should contravene or fail to
comply with any provision of the Code.
Code of Conduct
A paralegal shall at all times:
➢ maintain the honour and dignity of the NPI

➢ put the interest of clients first in the execution of his/her duties
➢ loyally execute the policies of the NPI in the performance of his/her duties
➢ abstain both in practice and in private life from any behaviour or conduct which
may tend to discredit the paralegal profession
➢ preserve independence in the discharge of his/her professional duties
➢ not engage in any other business or occupation, if by so doing he/she may cease
to be independent
➢ treat his/her professional colleagues with the utmost courtesy and fairness
➢ accept a case only if he/she can handle it promptly and with due competence,
without undue interference by the pressure of other work.
As paralegals are part of the legal profession, the same principles of professional legal
ethics should apply to them. As soon as the profession has clarified the position of
paralegals, it is expected that many additional rules will become applicable to
paralegals, for example, rules about handling trust monies.
According to the Practical Legal Training division of the Law Society of South
Africa, the Golden Rule of Lewis, a writer on legal ethics, is most helpful to practising
lawyers. Lewis defines his Golden Rule as follows: “A practitioner must avoid all
conduct which, if known, could damage his reputation as an honourable lawyer and
honourable citizen.”
Activity 1.10
Read Lewis’s Golden Rule again, carefully. Now write down any kind of conduct
(behaviour) on the part of a legal practitioner that you think could damage his or her
reputation and give the profession a bad name.
21
Now read the following and pay close attention to the eleven aspects of Lewis’s
Golden Rule, which, if observed, will prevent any damage to the practitioner’s and the
profession’s reputation:
➢ allegiance to the state (Republic of South Africa)

➢ duty to sustain the law
➢ duty of honesty and fairness
➢ duty neither to overreach anyone nor to assist others to do so
➢ duty to be courteous at all times
➢ proper attitude towards authority
➢ duty to do his best in the service of the client
➢ duty to eschew avarice – placing his/her own interests last
➢ so to act that his/her conduct will be seen beyond a pre-adventure to meet the
foregoing requirements
➢ duty to sustain the rights, honour and integrity of the profession
➢ duty to conduct his/her extra-professional life consistent with the canons of good
citizenship.
Du Plessis, another writer, points out that there is no such thing as a perfect jurist.
According to him an attorney must have nine good characteristics:
➢ integrity – incorruptible honesty

➢ objectivity – no considerations of own personal gain; impartiality; avoidance of
conflict of interest
➢ dignity – self-control; respect for the court
➢ discretion – ability to make sound decisions especially during litigation (civil and
criminal)
➢ academic education and practical competence
➢ capacity to work hard
➢ preservation of legal channels and procedures
➢ fairness
➢ the ability to accept responsibility towards his client and in his practice
Some attorneys possess specific qualities. These qualities correspond with the traditions
and conventions of the attorney’s profession. If a candidate attorney has the positive
attitude that is required, it will be possible for him/her to acquire, develop and improve
these characteristics. The candidate attorney’s realisation and acceptance of the
various facets of his/her professional responsibilities are of the utmost importance. Du
Plessis regards honesty as primarily a matter of disposition.
1.4.2 What are ethics?
22
Ethics set a standard for how we practise our profession. The code determines
what type of behaviour we deem to be acceptable and what not – particularly not.
Certain kinds of behaviour would be unacceptable in terms of legal ethics, but perfectly
acceptable socially or within another profession or occupation. An example is stealing
clients and advertising, which is acceptable for supermarkets, but not for legal
practitioners. These days limited advertising in legal practice is allowed.
1.4.3 Aim of the code
Ethics aim to protect the public and set standards for members of the legal
profession. Standards should be high in order to guarantee trustworthiness. If we do not
comply with these standards, we are breaking the ethical rules and we will be punished.
The legal profession’s main aim is to:
➢ give legal advice and

➢ render legal services
➢ to the public
➢ concerning a specialised field of
➢ knowledge, skills and attitudes.
The practitioners must give this advice and render services concerning a specialised
field of knowledge, skills and attitudes, independently and according to the ethical
rules of the profession. By rendering these services in this specific way, the profession
builds trust, i.e. a relationship between you and your clients based on the highest trust
– uberrimae fides. The profession aims to establish and protect this trust by requiring
dedication from its members.
Thus, if we have the required knowledge, skills and attitudes, work independently
according to the ethical rules and with dedication, we will be trustworthy.
1.4.4 The duties of the paralegal
The paralegal has a duty to his or her clients, the profession, the other side, the
opponent’s client, undefended and unrepresented third parties, colleagues, the state
and the court. The commitment to ethical standards is the crux in a practitioner’s
professional life. Without that, formal disciplinary steps will become necessary.
Standards of legal services may drop if:
23
➢ one has too many clients;
➢ one becomes involved in their matters by doing business with them; and
➢ one has a permissive attitude towards ethics.
a) The paralegal’s duty to the client
Instruction
This is a very important aspect of legal practice. The relationship between you
and your client is based on instruction, and the principles of the law of agency apply.
Instruction by the client can be divided into four categories:
➢ acceptance of the brief / instruction

➢ taking details of the brief / instruction
➢ execution of the brief / instruction
➢ termination of the brief / instruction.
You should complete your instruction - you cannot stop halfway.
Confidentiality
This brief/instruction is confidential. You should guard all aspects of it with great
secrecy and should not discuss it with anyone unless practice requires it from you, for
example during negotiations.
When someone demands information concerning your client and disclosure thereof is
not an inherent part of the performance of the work, your remedy is based on legal
privilege. If you divulge information about your client unprofessionally, your client’s
remedy against you will be based on confidentiality.
Activity 1.11
Remember the previous activity where you had to write down your professional
expectations of various professions? Try to answer the following question using what
you have learned so far: May you give out information like the address of a client on
request?
24
There is no rule to help you answer the above question. So, if you ever find
yourself in this position, let the following guidelines help you decide on appropriate
action:
➢ if your client forbids you to give out personal information, you may not give it
➢ if you conclude from other instructions not to give it, then do not
➢ if you have no instruction in this regard, positive or negative, you do not need to
give it.
Legal advice
You will often be required to give legal advice.
➢ You must give the advice that you know and believe is correct. The advice should
be based on the law applicable to the facts, for example one should not advise
the client to litigate if the case does not have merit.
➢ Do not tell your clients what they want to hear – that is dishonest and
unprofessional.
➢ Do not fabricate a defence. It is tempting, especially where the truth is
inconvenient.
➢ If your client does not accept your advice, you need not withdraw – you may
proceed because you have explained and warned your client about the dangers
and costs of possible litigation. You may not, however, lie for and/or with your
client.
Activity 1.12
Do this activity before you proceed. What would you, as a legal practitioner, do if you
were to receive instructions from clients with conflicting interests? Revise your notes
on the code of conduct and activities 1.8 and 1.9.
Withdrawal
Inform your opponent as soon as possible but do not give your reason for
withdrawal to the opponent – it is privileged information. You may withdraw from a
client’s case but it must be for a good reason. For instance:
➢ your own illness
25
➢ lack of funds from the client, but only when you have requested the funds
timeously and the withdrawal is timeous
➢ you have received no instructions from your client on material points and at
material times
➢ the instructions will cause unethical behaviour on your side
➢ the client has lied to you and the trust between you has been broken
➢ you and the client have become enemies.
Other aspects
You also have a duty towards your client in other important matters.
➢ You have to handle your client’s case without fear for yourself or somebody else.
Some types of cases are unpopular or have a stigma, for example cases of rape or
child molesting.
➢ If you accept an instruction you must complete it promptly and to the best of your
abilities. If you do not have enough experience, refer it to a colleague with the
prior consent of your client.
➢ You should not merely record the facts as your client conveys them to you. You
must also make reasonable and proper enquiry regarding the correctness of the
facts. Ensure that the facts given to you by the client can be proven and support
the allegations.
➢ You may be involved in other business as long as you do not neglect your clients.
A conflict of interests will arise if you use information about your client to your
own benefit. You may do business with clients, but if the clients also need advice
on the deal, you must inform the client honestly, even if it is to your detriment.
➢ You may also get commission as a house agent or a financial adviser. For example,
you may invest a client’s money at any bank and receive commission from the
bank as long as you inform the client. No consent from the client is needed.
➢ You also may receive small donations or gifts from clients. Large ones are not
acceptable.
b) The paralegal’s duty to the profession
As a paralegal you also have a duty towards your profession as a whole. You have an
obligation to:
➢ render legal services competently

➢ strive for fairness, justice and morality
➢ strive for improvement of the profession
➢ be responsible for professional self-development.
26
c) The other side
You do have a duty of care towards the ‘other side’ as it is conducive to the
administration of justice.
1. You must honour all your undertakings and warranties that regard the other side.
2. You should not launch a personal attack on your colleague.
3. Treat the other side with great respect and avoid petty behaviour.
4. You must at all times bear in mind the image of the profession and you should
avoid anything that may harm that image.
5. Reply promptly to all correspondence from the other side – even if it is only to
acknowledge receipt while taking instructions from your client.
6. Mention references in your correspondence – yours as well as theirs.
7. Negotiate personally with the other side – do not delegate this to your secretary
or assistant.
8. Never contact a colleague’s client directly, as this will surely upset the
relationship between the two of you and have serious disciplinary consequences.
d) The opponent’s client
You must observe the following with regard to your opponent’s client:
➢ you may not contact your opponent’s client to discuss the matter unless you have
your opponent’s consent
➢ if the opponent withdraws from his client, you may consult that party directly.
When dealing with civil matters the following apply:
➢ anytime before the trial starts, you may consult with anybody who may assist your
client in the matter or with the case
➢ when the trial has started, you may only consult your opponent’s client before
witnessing has started and after timeous notice to the client’s legal representative
of your intention to consult or to proceed with the consultation
➢ when the trial has started and the witness has testified but the litigation process
has not been completed, you may only consult in the presence of the legal
representative of the witness. If the legal representative of the witness, after
timeous notice, refuses or does not attend, you may proceed
➢ no one “owns” a witness.
When considering consultation in criminal matters the following will apply:
➢ the general rule is that the accused or the legal representative must approach the
state (the director of public prosecutions) for consent to consult with a state
witness.
➢ if permission is granted, the state is entitled to be present. If permission is refused
- the court must be approached for its permission.
➢ if the witness refuses to consult, there will be no obligation on the witness to
consult with you.
27
If the State objects to consultation and shows:
➢ it has reasonable grounds to believe the consultation may intimidate the witness
and/or
➢ the consultation may lead to tampering with evidence and/or
➢ the consultation may disclose the state’s secrets and/or
➢ the consultation may disclose identity of informers and/or
➢ the consultation may otherwise prejudice the ends of justice
the Court may refuse permission to consult. It is important to note that the Court has a
discretion in these circumstances.
e) The court
One should respect the Court. One should advise clients to place the whole truth before
the Court, to attend court proceedings as scheduled and to be on time. If you assist
your clients to prepare documents for court, the work must be impeccable.
f) The paralegal, his/her practice and his/her colleagues
If you work with other paralegals or are employed by any legal

organisation, you must work in good faith with your colleagues and show them due
respect. It is also important to know that the senior person at the office will be
vicariously liable for any employee’s wrongful action towards clients or the public.
g) Undefended or unrepresented third parties and the public
You have a special professional duty towards third parties and the community at large.
Your conduct should, at all times, instil unqualified confidence in the public’s mind.
For instance, if you draw up a contract between your client and an unrepresented third
party, you have a duty towards that third party to be fair.
This duty is discharged when you explain the importance and consequences fully to the
other side so that he/she can take a decision with full knowledge of the implications of
the agreement. When you are for some reason unable to do this (when there is a conflict
of interest caused by privilege) you must advise the unrepresented party to consult
his/her own paralegal or lawyer. You should refer such a party to the available legal
aid, for example, an advice office, an attorney or a university law clinic.
28
h) The paralegal and the State
You, like all legal practitioners, should comply with the laws of the country. One should
not defeat the ends of justice.
Activity 1.13
Mr Beer consults you for advice. He explains in detail how he intends to set up a new
business which will sell liquor. He needs you to advise him on how to get a licence and
also wants you to draw up lease and employment contracts for the new business.
At the end of the consultation he tells you that he has got hold of recipes for a special
beer from a Mrs. Drink. She is also your client, although Mr. Beer does not know this.
Mrs. Drink phones you later. She is furious. She tells you that she wants you to help her
to sue Mr Beer for stealing her ideas.
She has heard that he has been to see you and demands that you tell her what he has
said. In not more than two sentences per question, answer the following questions:
➢ Can you act for Mr Beer?

➢ Apart from the ethical issues, is there anything else, practically speaking, to stop
you acting for him?
➢ Can you act for Mrs Drink in her action to stop him?
➢ Can you tell Mrs Drink what Mr Beer consulted you about?
1.5 Legal Practice Act

See next page.
The Legal Practice Bill information
29
30
31
32
33
34
35
36
Unit 2
Communication
When you have completed this unit, you should be able to:
➢ make, receive and record telephone calls effectively

➢ design and redesign call sheets for incoming and outgoing calls
➢ reflect on the possible reasons for success or failure of certain calls by discussion
and/or an essay
➢ identify and explain the aim of, phases of and steps in a consultation
➢ design and redesign a checklist for consultations as well as a consultation sheet
➢ reflect on the possible reasons for success or failure of certain consultations by
discussion and/or an essay
➢ write a formal letter
➢ define the three objectives of letters
➢ define the six guidelines of clarity
➢ write formal letters correctly by applying this knowledge
➢ design a personal letterhead
➢ analyse, criticise and correct example letters
➢ take a statement correctly by noting the personal detail of the client, the
description of the problem, the advice given to the client and possible action to
help the client
➢ draft an affidavit correctly by adapting the example affidavits to the specific facts
of the matter on hand
➢ explain the differences between an affidavit and a statement to clients
➢ assist clients in taking statements and drafting affidavits.
We divide communication skills into oral and written skills. Effective

communication is the key to a successful career in the law. You will have to develop
and improve your skills by practising them constantly. Language is the tool which you
are going to use for these purposes. When you are communicating with people, bear
the following in mind:
➢ What language they prefer

➢ If you cannot speak that language, you need an interpreter/translator who knows
something about the law
➢ Use a level of language that is appropriate to the status/position of the people
you are communicating with
➢ Use grammatically correct language
➢ Avoid legal jargon
➢ Never presume they know a lot about the law
37
2.1 Oral communication
2.1.1 The telephone conversation
Activity 2.1
➢ What do you think you should do in preparation for the call?
Prepare yourself before you make the call by doing the following:
➢ Have your pen, paper and references (like the file numbers, relevant names and
case numbers) ready. Greet courteously, give your name as well as your position
and request to speak to the relevant person. You must prepare yourself before
making a telephone call.
➢ If the person is not available, either leave a detailed message or say you will call
back. Always take the name of the person who took your message. If uncertain,
ask for the spelling of any particulars. Note the time, duration and date of the
call.
➢ If the person is available, inform him/her that you are calling on behalf of your
client and the reason for your call. Never change your client’s message. If you do
not know how to answer the person on certain aspects, tell him that you have to
speak to your client and will ring again. If you reach any agreement with the
person or receive/make proposals, be sure that you understand and note them
correctly.
➢ Try not to lose your temper or become involved in an argument. Never use foul
language.
➢ Make short notes while talking. You may choose to rewrite them in detail later or
to leave gaps between the notes to fill in the details. Whichever you decide on,
the end product must be complete, logical and fairly neat.
➢ Summarise the conversation before you end the call. You do not need to confirm
all calls by letter. If the conversation could possibly have an influence on the
matter, you should confirm it in writing. Proposals, agreements, undertakings and
appointments are very important and must be confirmed in detail by letter.
➢ You must also practise and develop effective listening skills. It is important to
listen properly to your client when he or she is telling you about a problem. This
is an absolute necessity, because you must not misunderstand what is said – be
sure that you understand! You may also establish whether the listener has listened
effectively – make sure he/she understands. The main aim is to ensure that both
of you share exactly the same understanding.
38
Most of the aspects above are applicable to incoming calls as well. You
should take note of the following:
➢ If the caller does not introduce himself, ask him to identify himself and if
necessary, to spell his name
➢ Get the caller’s references and give your own
➢ If you do not have the relevant file but you can fetch it quickly, ask the caller to
hold
➢ If you cannot fetch the file quickly, inform the caller and establish if the
conversation will be fruitful without the file in front of you
➢ If you cannot proceed without your file at any stage, inform the caller and offer
to call back.
It is very useful to design your own telephone call sheets, as it will ensure that you note
all details properly.
Activity 2.2
Design a telephone call sheet for:
➢ Incoming calls
➢ Outgoing calls
If you have the opportunity of offering your services voluntarily at a

business or law clinic, you may find the following activities more challenging. If not,
practise them in any event.
➢ Practise your skills by making different types of calls to different people

➢ Practise your skills by simulating (acting/playing) different types of calls – ask a
friend or family member to assist you and evaluate your skills. Concentrate on
adapting to new, unexpected and challenging situations over the phone
➢ After practising different types of calls, review your calls and call sheets by
discussing the possible reasons for success or failure. If necessary, redesign your
call sheets.
All telephone books are arranged in alphabetical order.
➢ All government departments are listed at the back of the telephone book
➢ The government departments are listed alphabetically
39
➢ Provincial government departments are listed under “P” under the heading
“Provincial Administration” in the central government departments alphabetical
list at the back of the directory
➢ Local councils and their departments are not listed at the back of the telephone
directory with the other government departments. They are listed under “M”
alphabetically with all the other telephone numbers in the directory. For example,
the municipality of Port Shepstone is listed under “M” for Municipality in the Port
Shepstone directory
➢ All hospitals are listed under “H”, with all the other numbers in the directory. The
hospitals are then listed alphabetically under “H”. Doctors are listed under
“Medical”, alphabetically by name
➢ All emergency service numbers are listed on one of the first few pages at the front
of the directory. If you are using a directory which has many different towns listed
in it, then the emergency numbers for each town will appear at the beginning of
each of the towns’ listings.
Activity 2.3
Use the telephone directory for the area that you are living in and find the following
telephone numbers:
➢ The local police station

➢ The Department of Welfare
➢ The Department of Justice
➢ A local medical doctor
➢ The local traffic department
2.1.2 The consultation

Some authors regard the main aim of consultation as being:
➢ to collect information;
➢ to establish/build a relationship of trust between you and your client.
Other authors add the following:
➢ the classification of the information collected;

➢ giving legal advice based on the collected and classified information;
➢ obtaining the mandate (brief/instruction) from the client.
Most authors divide a consultation into phases, although all of them admit that the
phases overlap. It is helpful to do the division, as it gives structure to the consultation
and improves an effective work pattern. A consultation should be cost- and time-
effective. Thus, it is necessary for you to work out a strategy. This can be very personal
but should achieve the aim of proper communication between you and your clients.
Some writers divide the consultation into pre-consultation, consultation and post-
consultation.
40
a) Pre-consultation
The purpose of this phase is to:
➢ obtain the biographical details of the client, like names, addresses, income and
expenses; and
➢ obtain a general idea of the client’s problem.
Use checklists as they are very useful during this phase. Normally the
client will complete a form on his/her own, while waiting for you.
b) Consultation stage 1 (Listening phase)
Effective listening must take place concerning:
➢ the facts of the matter;

➢ the client’s emotional reaction about the situation;
➢ the client’s motivation for consulting you.
In this phase you should:
➢ Greet and invite your client to sit down, introduce yourself and explain your
position at the office. Give your client your business card. (task 1)
➢ Start with an opening question; make small talk to put the client at ease. (task 2)
➢ Listen carefully to your client. You will need a good memory, patience and
concentration. Try to establish your client’s personality type. Do not lose eye
contact and do not interrupt your client. (task 3)
Take note of the following types of listening:
1. Positive listening:
➢ Show no reaction – either verbally nor physically
➢ Listen in silence
➢ Do not worry about silences
2. Responsive listening:
➢ Make no commitment
➢ Use short words or gestures like:
Hmm
Yes
So
Nod of the head
3. Receptive listening:
41
➢ Still make no commitment
➢ Aim to show your understanding and support by saying:
I understand
I am sorry
I am sure it was terrible
4. Active listening:
➢ Engage actively
➢ Confirm that you understand the client’s version of events
➢ Do not analyse the information given by the client yet
c) Consultation stage 2 (Questioning phase)
At this stage of the conversation between you and your client, you must take a more
active role:
➢ The conversation between you and your client now takes place.
➢ Once you have the outline of the case, you can then fill in the details by asking
questions.
➢ While making notes, as detailed as you believe necessary, you check factual
details with your client all along.
➢ After that, you discuss and note practical details like fees and costs, possible
witnesses, other information and documents to be obtained, like an original
marriage certificate.
In this phase:
➢ You may ask questions to fill in gaps, get details and background. Establish
relevance by using the funnel method, first asking general questions, then finding
out detail. Work quickly, without testing your client’s version or firing off
questions too rapidly. (task 4)
➢ Your summary then follows. Tell your client how you understand the complete set
of facts. Then confirm it, adjusting the facts where necessary. Remember that by
asking for too many explanations you may cause the client to feel insecure, which
may lead to him or her adding unnecessary or untrue facts. It may, on the other
hand, also encourage your client to give helpful details. (task 5).
➢ Note-taking is your next task. Take detailed notes of the following: the
conversation, names of people like possible witnesses, past or future events and
exactly what the client wants you to do. Do not write the conversation down word
by word, as this may break the flow; you may also lose eye contact with your
client, and the client may feel obliged to add unnecessary details. (task 6)
42
Questioning should come at the right time and should serve a specific
purpose. We will discuss this in more detail. Questioning will not be effective if you:
➢ do not greet the client properly

➢ do not give your client a chance to relax
➢ do not create a good relationship between yourself and the client
➢ use legal jargon/terminology instead of plain/simple language
➢ focus only on relevant legal facts
➢ lead the client astray
➢ do not establish what the client really wants
➢ miss important information
➢ do not confirm instructions about settlements and proposals explicitly
Please take note of the following kinds of questions you may ask when
communicating with your client:
➢ Open question: Widest possible answer.
▪ What did you do yesterday?
➢ Semi-open question: Not as wide as open questions.
▪ What did you drink yesterday?
➢ Closed question: Specific questions.
▪ Did you have coffee with breakfast yesterday?

▪ What did you have to drink with breakfast yesterday?
➢ Yes/no question: Only “yes” or “no” will suffice. Problem: very few questions can
be answered only with “yes/no”. It is an unfair type of question.
▪ Do you drink coffee?

▪ Do you drink alcohol?
➢ Alternative question: A choice, the one or the other. Problem: may be ambiguous,
misunderstood or can lead to weak answers.
▪ Did you have tea or coffee with breakfast yesterday?
➢ Singular question: Covers only one aspect.
43
➢ Plural question: Covers two or more aspects.
▪ Did you have coffee with breakfast yesterday and did you phone your
wife’s lover after that?
➢ Leading question: The answer is suggested or given.

▪ Did you then run after them, shouting to them to stop?
▪ Did you shout “If you do not open, I will shoot!” before opening the door?
You may ask leading questions when communicating with people during
consultations or telephone conversations. However, leading questions are not allowed
in a court situation, during examination in chief or in re-examination. Leading questions
are allowed in cross-examination.
Although paralegals are not yet allowed to appear in court for clients, it is vital that
you understand the importance of leading questions during communication with and
cross-examination of people.
d) Consultation stage 3 (Advising phase)
You have to advise and explain the following to your client: (task 7)
➢ the plan of action

➢ costs
➢ the general position in fact and in law
➢ the alternatives/options and the implications of each
➢ prescription (see Module 3 Unit 3)
After advising and explaining, you have to do the following: (task 8)
➢ confirm your mandate by spelling out your understanding of what your client wants
➢ give your client legal advice and tell the client what you can or cannot do
➢ explain the procedure to your client to prepare him or her for what he or shecan
expect
➢ if necessary, confirm the main aspects by letter
➢ if you have to do research, inform your client and make another appointment
➢ if you cannot help the client, refer him or her to the appropriate organisation or
person.
44
You then make sure of:
➢ the details of the follow-up work you will do (task 9)

➢ the details of the follow-up work the client must do (task 10)
You then:
➢ make the next appointment (task 11)

➢ ask for any other business (task 12)
➢ conclude, say goodbye and accompany your client to the door. (task 13)
Activity 2.4
➢ Design your own checklist for consultations. Remember the different stages of the
consultation.
➢ Design your own consultation sheet.
➢ Make appointments to consult with different people about legal problems. You
may ask friends and family to assist you and to evaluate your performance.
➢ You may even consider approaching your high school and asking the teachers to
organise consultations for you. Ask them to evaluate your performance.
➢ Reflect on your own consultation techniques by discussing or making notes for
yourself on problems you have experienced, your listening technique, types of
effective questions used and reasons for effectiveness, the effect of note-taking
during the process and any other aspects you wish to note.
2.2 Written communication
2.2.1 General remarks
Words are our business and our tools; therefore we need to have a good
basic grasp of language. In our profession we use language to understand, interpret,
explain, reply, argue and listen. You must make use of a dictionary often to ensure that
your communication with others is clear and concise. If correspondence is in one
language try as far as possible to reply in that language unless your client insists on the
contrary. It is common practice to continue with the language in which pleadings were
drafted. You will write many different types of letters, for instance:
➢ to your client to advise, report or request instructions

➢ to the other side to request, demand, reply or advise
➢ to third parties to request, advise or inform
45
2.2.2 Three communicative requirements
a) Clarity
Letters should fulfil the following requirements. Firstly, they must be clear. Each letter
must be clear enough for your intended reader to understand its message. It must not
be ambiguous or able to be interpreted in another way. There are six (6) general
guidelines in this regard, namely:
➢ Use short, well-known and commonly used words or phrases. Substitute one or
two words for long passages. Repeat the same word where possible. If you start
with the word “house”, continue using it and do not start to use words like
“dwelling”, “structure” or “home”.
➢ Write short and simple sentences. The rule is to have one thought per sentence.
Each sentence should have between 15 and 35 words. If you use long, complicated
sentences, you may confuse yourself and your reader. Simple sentences tend to
have only one possible interpretation. You should minimise descriptive phrases.
➢ Use the active voice rather than the passive voice. If you use the passive voice,
you may leave out certain parts of the sentence. Write “The boy kicks the ball”
rather than “The ball is kicked by the boy”, as you will more likely write: “The
ball is kicked”.
➢ Refer to people by name. State the names of your clients and that you act on
their behalf, except in letters for clients in terms of the Small Claims Courts Act.
You must write those letters as if the clients themselves wrote them, because
representation is not allowed – only assistance (Refer to Module 3 Unit 2). Use the
name of the person/institution/business you are writing about. Referring to
people adds credibility (for example, that you are accountable) and you don’t
mislead the reader. At most firms, letters are written in the third person, as
everyone accepts joint responsibility for all actions of the firm i.e. “We act on
behalf of our client, Mrs Molefe. Writer consulted with her and our instructions
are ...”
➢ Use the spoken word as a guide. Use the natural flow of speech. If you struggle
to write a letter, stop and say out loud what you want to communicate/convey to
your reader. Then write it down and correct where necessary. Be careful never to
use slang or inappropriate language.
➢ Have all the relevant information available. This will enable you to be sure of
what you are writing. Get to the point quickly by using as few words as possible.
b) Organisation
Secondly, good organisation is very important. Organise your writing in

such a way that you inform and convince your reader. Remember, the alphabet letters
are used to make up words; the words make up sentences; the sentences convey ideas
and concepts which must convince the reader.
46
Start off with:
➢ the information which the reader must know (use the six w’s, namely what, when,
who, where, why and whom)
Then:
➢ follow up with the information that the reader should know
Lastly:
➢ conclude with the information which will be of interest to the reader
6 W’s:
what,
when,
who,
where,
why,
whom
Detail
about
the above
Office
hours,
etc.
c) Image
In the third place, remember that a good image of yourself or your

business is enhanced by the professional use of language and typing or word processing.
You should use a simple style and spacing method which is easy to read. Use good paper
(not necessarily expensive). Letterheads should be simple and elegant and contain all
the relevant information. Your letters should look pleasant and attractive.
Generally, you have to adopt a formal tone in your letters. Apart from the
fact that your letters will always be read by at least one other person, be aware that
your letters could become part of court proceedings as evidence. Please bear the
following in mind:
47
➢ Never write a note on a letter, as it is very unprofessional.
➢ Think of alternatives which can reduce your wording. Use words such as “kindly,
we advise, my/our client alleges” and “my/our instructions are” in your letters.
Use the present or the past tense: this keeps your letters simple. Use “hereby” as
infrequently as possible – the letter itself serves as the indicator.
➢ Don’t be too friendly or polite – we are not trying to charm people. Thus, do not
write: “We would like to advise you ...”, but: “We advise ...”
Take note of the following important points:
➢ Reread what you have written and ask yourself how it looks – view it as if you were
receiving it. Any alterations should be retyped unless there is no time to do so. If
the alteration is very small, for instance only one or two letters to be changed,
you may do it by hand. It was decided in the case of Jenkins v De Souza 1968 (4)
SA 559R that legal practitioners are bound by errors in letters – even if they are
only typing errors.
➢ If you work for somebody, your letters must always be checked and signed by the
supervisor. Letters should be filed together, with the most recent one on top and
the oldest at the bottom. Rough work should be kept separate. Keep your files in
order and with separate sub-files for each kind of document.
➢ If a letter refers to an original document, send out copies and refer to such copies
attached to your letter. It is best to keep your original documents as proof,
because you can, in most instances, prove your client’s case with original
documents only! If you send out originals, you may never recover them.
➢ When you write letters requesting a response from the other side within a specific
period, you should request it “14 days from date hereof”. If you do not do so, that
person may and will take his time to respond. Examples of these types of letters
are letters of demand, a demand for pleadings to be filed or to obtain your client’s
instructions on a specific point. Perform what you have promised in a letter: do
not easily grant extension of the time limit you have placed in your first letter.
➢ Letters are costly, so do not send a letter every time you do something – perhaps
only one is needed for many actions. You must decide if a phone call or a fax note
will be cheaper. However, when a phone call, a discussion, etc. may have an
effect on the proceedings, you must record it in writing.
➢ Acknowledge receipt of and reply to letters from third parties without delay. Keep
your client informed of any developments.
Activity 2.5
➢ Design your own letterhead.

➢ Look in magazines and/or newspapers for interesting letters. Cut them out and
try to improve them by applying the three communicative requirements. You may
rewrite them or make corrections directly on them.
➢
48
2.2.3 The formal letter
Formal letters fall into a number of categories, like letters of demand,

letters making settlement proposals, giving or requesting information, etc. Although
they have slight differences, they have the same basic format. Formal letters contain
the following:
➢ two addresses
➢ references
➢ a salutation
➢ a subject or title
➢ three sections or paragraphs
➢ the ending.
Study the sample provided below. The headings and spacing required have been set out
for you in checklist form and according to the accepted format:
Your address
Your postal code
Date
Your reference
(Skip line)
Title of person to whom letter is being sent
Company’s Address
Company’s Postal Code
(Skip line)
Their reference
(Skip line)
Dear Mr / Ms Lehong
(Skip line)
Title of letter (underlined or in block capitals)
(Skip line)
Paragraph 1
• Reason for letter • Where advertisement was seen
• Relevant dates • Any additional information which is factual
(Skip line)
Paragraph 2
● relevant information ● Experience
● Additional relevant information
(Skip line)
Paragraph 3
● Copies of testimonials ● Names and addresses of referees
● Telephone number where contact can be made ● Availability for interview
● If not job application then appeal urgently for assistance
(Skip line)
Yours faithfully
● Signature
● Name in CAPITALS (or typed) followed by title (Miss, Mrs etc)
● Position held if representing company/organisation
49
Activity 2.6
➢ You are employed as a paralegal at Zimm Attorneys. The firm is handling the
divorce of the plaintiff, Mrs Brown. Write a letter to your client:
- introducing yourself
- asking for an additional amount of R100,00 to pay the sheriff for the next
service attempt
- asking for a new address for service to her husband
- giving a time limit after which you will close the file.
➢ Write a letter of demand incorporating the following set of facts:
- Slum Landlords (Pty) Ltd, owners of Falling-Down Towers, instructed you to

demand the rental of R10 000 in arrears for February this year from Junior
Little Lamb (CC).
2.2.4 Taking a statement
A statement is necessary because it helps to keep a record of the client’s

case. The statement is kept in the client’s file. The statement is divided into four parts:
➢ Personal details of the client, for example, name, age, address and work details,
➢ Description of the problem
➢ What advice you gave to the client
➢ What action can be taken to help the client
You will do all of your work on the case using the information you wrote down in the
first statement. It is very important for you, as the paralegal, to write down accurate
and complete information about the people you help. You write all the information
down on a “case sheet”.
This is a standard question sheet which includes all the important basic questions that
you should ask your client – for example, his or her name, address, age, and so on.
Consider the following example of a very simple, shortened and unused case sheet:
50
CLIENT: ___________________________ FILE NO ______________________
HOME ADDRESS __________________________________________________
POSTAL ADDRESS ________________________________________________
TEL(HOME): _______________________ (WORK) _______________________
MARITAL STATUS: ________________________________________________
INCOME:
_________________________________________________________
TYPE OF CASE:
__________________________________________________________________
PRESCRIPTION PERIOD: ______________ PRESCRIPTION DATE: _________
SUMMARY OF FACTS:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________
DATE OF CONSULTATION:__________________________________________
ADVICE GIVEN:____________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_________________________________
STATEMENT:______________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
The following is an example of a client’s case taken down by a paralegal:
1. My name is Benjamin Ngwane. I am a 30 year old male living at Hostel Number

52, Langa, Cape Town. I am unemployed.
2. On Monday 26 September 2010, at about 8 p.m., I was walking home after visiting
a friend. I was walking alone on the pavement past hostel number 49 going in the
direction of hostel number 52, near the Langa police station.
3. A group of men crossed the road and came towards me. I recognised one of them.
His name is Patrick Xegwana. He lives in hostel number 52 with me.
51
4. The group stopped me and Patrick Xegwana grabbed me by my shirt and asked me
where I was going.
5. I tried to answer that I was going home but before I could finish, Patrick Xegwana
slapped me on my left cheek with his left hand.
6. One of the other men then assaulted me by punching me in the stomach and
kicking me where I lay on the ground. He was wearing a dark blue overall which
was very torn. He was also wearing glasses. I recognised this man’s face although
I do not know his name. He lives in hostel number 49. He was about 30 years old.
I would recognise him if I saw him again.
7. I think there were five men altogether. I do not know the names of any of them
except for Patrick Xegwana but I recognised all of their faces. I would recognise
them if I saw them again.
8. They were all crowding around me while I was lying on the floor being assaulted
by the man in the blue overall. One of the men had a gun and was poking it in my
side. I was very scared and I did not say anything to them. They did not say why
they were assaulting me. They only told me that I must not come near hostel No
52 again.
9. Everything was happening so quickly. The last thing I remember is a hard blow on
my head.
10. I was dizzy at the time and can only remember being picked up. I was looking
around to see where the men were but they were gone. One of the people helping
me was a man called “Vuyani”. He took me to hostel No 48 which was nearby.
11. At the hostel the man “Vuyani” telephoned the Langa Day Hospital. They sent an
ambulance to come and fetch me.
12. In hospital I was treated for two broken ribs, severe bruises all over my body, and
my eye was bleeding. I had to stay in hospital for 3 days. My hospital card number
is 5487. I was treated by Dr Wyngaard.
13. I do not know if there were any witnesses to the assault on me. I do not know if
“Vuyani” witnessed the whole assault on me.
14. I do not know why I was assaulted by the group. I feel that I have been wronged
and I want to make a claim against the people who assaulted me.
Date on which the statement was taken: 28 September 2010.

Name and address of person who took the statement:
Lawrence Ndlovu
c/o Langa Advice Office
Cape Town Telephone number of Lawrence Ndlovu: 021-642109
As you may have noticed from the above examples, the case sheet contains a lot of
information. The kinds of information required have been set out below:
➢ Full names – check the spelling

➢ Address – ask if post can be delivered to the address or not
➢ Identity number – this is often useful for reference purposes
➢ Age or date of birth – if the person does not know his or her age, then ask if some
important event happened in the year he or she was born – for example, a very
bad drought which was recorded. This will give you an idea of the year that the
person was born.
52
➢ The details you need will be different according to the different types of
problems. For example, in a complaint about underpayment of wages you need to
know what work the client was doing and what the wage was supposed to be, as
well as the name and address of the employer. To help with a pension application,
you need the age and present income of the client.
➢ You must then write down all the details of the problem as they happened in
chronological order – in other words, in the correct date order that things
happened. For example:
▪ On 16 December 2010 I was dismissed from my job

▪ On 17 December 2010 I returned to get my notice pay
▪ On 20 December 2010 I went to the Union about my dismissal and so on
➢ Write down every detail of importance. Rather include information if you are not
sure whether it is important or not. It might be useful at a later stage.
➢ You must tell your client what his or her rights are. You must then explain what
steps can be taken to help him or her.
➢ Then you must listen to your client to find out exactly what he or she wants you
to do. These are the “instructions” that your client gives you. For example, if your
client was dismissed from a job, don’t just take it for granted that he or she wants
the job back, even if you feel that the dismissal was unfair. On the other hand, if
your client says he or she only wants notice pay, this may be because he or she
does not know anything about “unfair dismissal” and “reinstatement”. It is up to
you to explain to your client about all his or her rights. Make sure that you have
all the information you need to solve the problem. If there is something that the
client is not clear about, ask him or her to find out that information and bring it
to you later. Write down details of the advice that you gave and the “instructions”
that your client gave you.
Discuss with your client what steps you will take to try and solve the problem:
➢ Make sure the client understands what you are going to do. Be realistic about how
much you think you can do for your client and how long it will take to sort out the
problem. Do not raise false hopes.
➢ You must then agree on how you are going to report back to your client. This could
be by writing a letter to the client or the client coming back to you on a set date.
➢ Write down everything that you do. For example, if you make a telephone call,
record this and the content of the telephone call. Keep copies of all letters that
you write for your client.
➢ Keep copies of all documents in connection with your client’s claim, for example,
an UIF card in a complaint about UIF benefits, the credit record for a problem
with a credit agreement and so on.
Do not write on original documents. Documents should be stapled to the statement
of the client so that they do not get lost.
Activity 2.7
53
➢ Design your own case sheet.
➢ Read, analyse and criticise the following statement by making notes on the good
and bad aspects thereof:
I, Laura Kruger, a 23-year-old female, hereby state as follows:
1. My friend Lucy and I went to the State Theatre on 2 May 2010. We saw “Madame
Butterfly” at 19:00. The show finished at 23:00.
2. When we arrived at my car in the parking area, I realised that I had forgotten my
shawl in the theatre.
3. I went back to the theatre alone. I was not sure where to go. I saw a man in the
passage that resembled the man who showed us our seats earlier.
4. I saw he was dressed in a white shirt, a black suit and a bow tie.
5. I found my shawl and as I went back, the same man from earlier stopped me in
the passage. He had a gun in his hand and told me: “I want all your jewels!”
6. I was frightened to death and I was shaking. I took off my rings and watch. He
grabbed them from my hands and also the chain around my neck. He turned
around and ran off.
7. I was so shocked that I could not scream. I must have just stood there for five
minutes.
8. My friend came to look for me and found me there in my shocked state. We then
went to the police station.
9. The value of my jewellery is more or less R10 000.
2.2.5 Drafting an affidavit
An “affidavit” is a written statement that one swears to as the truth.

Another name for an affidavit is a “sworn statement”. For example, when a person
needs to prove something (like his/her age in order to get a pension) and the person
does not have any written proof that what is said is true, then the person can put this
information in an affidavit. The person signs this statement (with the person’s name or
a cross if the person cannot write) in front of someone called a Commissioner of Oaths.
A Commissioner of Oaths can be a magistrate, bank manager, lawyer, some priests,
social workers and certain members of the South African Police Services (SAPS).
Consider the following example of an affidavit form:
54
1. I ___________________ (name of person) do hereby make oath and say:
2. I am an adult _____________ (male/female)
and live at ______________________________ (address)
3. I am ____________________ (married/unmarried)
4. The statement (fill in what the person knows is true)
__________________________________________________________________________
__________________________________________________________________________
_________________________________________________________________
____________________
DEPONENT (The person is called the deponent and the person must sign
here but only in front of the Commissioner of Oaths. Then
the Commissioner of Oaths fills in this next part:)
I certify that the deponent has acknowledged that he/she knows and understands
the contents of this affidavit which was signed and sworn to before me at
_________________ (place) on the _______ day of ___________ 20__ (date) in
compliance with the regulations contained in Government Gazette No. R1258 dated
21st July 1972 as amended.
(Commissioner of Oaths signs here after asking the person (the
deponent) to swear with his/her hand in the air that s/he is telling
the truth.)
Study the following two examples of affidavits:
Example 1
Affidavit
1. I, Benjamin Ngwane, do hereby make oath and say:

2. I am an adult male and I live at Hostel number 52, Langa, Cape Town.
3. I am unmarried. I am presently employed at Handrails (Pty) Ltd, Dolphin Street,
Epping, Cape Town. I have been employed there as a driver for five years.
4. On Monday, 26 September 2010, at about 8 p.m., I was walking home after visiting
a friend. I was walking alone on the pavement past hostel number 49 going in the
direction of hostel number 52.
5. A group of men crossed the road and came towards me. I recognised one of them.
His name is Patrick Xegwana. He lives in Hostel number 52 with me.
6. The group stopped me and Patrick Xegwana grabbed me by my shirt and asked me
where I was going.
7. I tried to answer that I was going home but before I could finish, Patrick Xegwana
slapped me on my left cheek with his left hand.
8. One of the other men then assaulted me by punching me in the stomach and
kicking me where I lay on the ground. He was wearing a dark blue overall that
55
was very torn. He was also wearing glasses. I recognised this man’s face although
I do not know his name. He lives in Hostel number 49. He is about 30 years old. I
would recognise him if I saw him again.
9. I think there were five men altogether. I do not know the names of any of them
except for Patrick Xegwana but I recognised all of their faces. I would recognise
them if I saw them again.
10. They were all crowding around me while I was lying on the floor being assaulted
by the man in the blue overall. One of the men had a gun and was poking it in my
side. I was very scared and I did not say anything to them. They did not say why
they were assaulting me. They only told me that I must not come near hostel
number 52 again.
11. Everything happened so quickly. The last thing I recall is a hard blow on my head.
12. I was dizzy at the time and can only remember being picked up. I was looking
around to see where the men were but they were gone. One of the people helping
me was a man called “Vuyani”. He picked me up and carried me to hostel number
48 nearby.
13. At the hostel the man “Vuyani” telephoned the Langa Day Hospital. They sent an
ambulance to come and fetch me. I stayed there until the ambulance arrived and
took me to hospital.
14. In hospital I was treated for two broken ribs, severe bruises all over my body and
a wound to my eye. I had to stay in hospital for 3 days. My hospital card number
is 5487. I was treated by Dr Wyngaard.
15. I do not know if there were any witnesses to the assault on me. I do not know if
“Vuyani” witnessed the whole assault on me.
16. I do not know why I was assaulted by the group.
_____________________
BENJAMIN NGWANE
I certify that the deponent has acknowledged that he knows and understands the
contents of this affidavit which was signed and sworn to before me at LANGA on the
30th day of September 1999 in compliance with the regulations contained in
Government Gazette No. R1258 dated 21st July 1972 as amended.
_________________________
COMMISSIONER OF OATHS
56
Example 2
Affidavit
I, the undersigned
EDDIE KHOZA
do hereby make oath and state as follows:
1. I am an adult male of 111 Kgasi, P O Kwa Xuma, 1868.
2. The facts herein contained are within my own personal knowledge and are as far
as I know both true and correct.
3. I wish to lay a charge of improper conduct with the Estate Agent Board against:
SAFEGUARD REAL ESTATE AND PETROS TSHABALALA on the grounds that I feel
aggrieved by the acts and/or omissions of such estate agent.
3.1. I furnish herewith a full exposition of such acts and/or omissions of such
estate agent, including all relevant facts and information as follows:
3.2. I was looking for a house and approached Petros Tshabalala of Safeguard
Real Estate late in October 2009. He said there was a house for sale at 111
Kgasi. The purchase price was R35 000-00.
3.3. He told me that the house was not in a good condition. He took me to the
house a week later. I liked the house and said I wanted to buy it. He said
that because the house was not in a good condition, he would reduce the
purchase price to R25 000-00.
3.4. He told me that the seller of the house was a certain Mr J Mgano and he
was presently living in Mafikeng.
3.5. Mr Petros Tshabalala said that for the house to be registered in my name,
he would have to bring Mr Mgano to go to the City Council offices. When
he took me to the house, he told me that I must pay a deposit on the house.
3.6. I duly paid an initial deposit in the amount of R20 000 and he said that for
the outstanding amount I will have to apply for a government subsidy. I
paid the deposit by means of a cheque on the 4th November 2009 (see a
copy attached as Annexure A) and Mr Tshabalala gave me the receipt (copy
attached hereto as Annexure B).
3.7. After payment I went to the Small Street Police Station on the 4th
November 2009 to sign the affidavit for the government subsidy. Mr
Tshabalala did not talk to me about a contract and I did not sign any
contract at all.
3.8. Mr Tshabalala said I could move into the house at any time before
Christmas but there was someone living in that house. This person left the
house in April 2010. My brother and I then moved in during May 2010. I
have been living in the house ever since.
3.9. I went to the Soweto City Council offices in June 2010 and they told me
that the house is not registered in my name. They told me that Mr Mgano
cannot sell the house because he did not buy the house from the Council.
57
3.10. I talked to Mr Tshabalala on many occasions about the transfer of the title
deed so that I can start paying for the services but he keeps saying that he
will do it. I have never asked him about the money.
3.11. Mr Tshabalala told me that in order to pay for the services he will deduct
the money from the deposit that I have paid. The services have not been
paid for a period of 3 years. The amount due on the account is R6 073-73.
The City Council has told me to pay R3 129-85 for the services otherwise
they will cut the services.
__________________________
EDDIE KHOZA
I hereby certify that the Deponent has acknowledged that he knows and
understands the contents of this affidavit which was signed and sworn to before
me at ___________on this the_____________ day of ______________1999 and
that the provisions of the regulations contained in Government Gazette R1258 of
21st July 1972 have been complied with.
_________________________________
COMMISSIONER OF OATHS
FULL NAME: _______________________________________

DESIGNATION AND
AREA FOR WHICH APPOINTED: _______________________________________
BUSINESS ADDRESS:
_______________________________________
_______________________________________
DATE: _______________________________________
PLACE:
_______________________________________
Activity 2.8
Compare the statement and affidavit of Benjamin Ngwane. What is, in your opinion, the
difference between the two documents? Write down your findings. For example, with
which words does an affidavit start, and so on.
58
2.3 Self-evaluation questions
If you have done activities 2.1 – 2.8 and have answered all the questions,
you should be able to check that you have achieved the outcomes for this unit.
Unit 3
Administrative skills
When you have completed this unit, you should be able to:
➢ Establish an elementary administrative system for a paralegal office
3.1 Introduction
A person who works in an office environment must have certain administrative skills.
Proper and reliable administration is essential to ensure the efficient and effective
running of an office. A person’s administrative skills will develop continuously as time
goes by. These skills must also develop simultaneously with the development of
technology. The administrative system used in an office may differ from office to office
and must be structured and refined according to the needs of that office. The secret is
not only to establish the necessary administrative system, but also to keep it under
constant and effective control.
3.2 Client information

Since a paralegal assists members of the public with their legal problems, it is necessary
to have the following information about the client on record:
➢ Name
➢ Address
➢ Telephone number
➢ Fax number
➢ Type of problem
➢ Other parties involved
➢ Date of receipt of instructions
➢ Name of person dealing with the matter
59
This information will assist the paralegal in all the follow-up work that must be done in
resolving the client’s problem. The type of information sheet that will be used will
depend on the resources of the office.
Activity 3.1
Develop a client information sheet that contains spaces for all the relevant information
that can be used in a paralegal’s office.
3.3 The reference number

The administration system must be able to handle large amounts of information.
Therefore the client’s information must be organised in such a manner that the
information is easily accessible when a client comes to your office for follow-up visits.
The client’s information sheet can be put in a file. A number has to be allocated to this
file. The numerical system must be in a chronological order.
It is advisable to link the number with:
➢ a date
➢ information about the paralegal working with the file
➢ identification of the client
Example:
AM / 2010/7/ Z05
AM = Anna Molefe – the name of the paralegal working with the file.
2010/7 = The client came to see you during July 2010 for the first time.
Z05 = The client’s surname is Zondo. It is the fifth client whose name starts
with a Z.
It is always important to quote your office’s reference number in all forms of contact
and correspondence with any other person or organisation involved in the specific
matter.
The new file must be recorded in a register containing all relevant information in
respect of the file, for example the file number, the parties involved, the relevant
matter, the person responsible for dealing with the file, etc.
The index register serves as an important aid in providing information used for
management purposes. There is a record of the number of files opened during a
particular period, the number of files in existence in respect of certain matters and the
number of files currently handled by a particular paralegal.
60
3.4 The day-book
Another method of indexing is the keeping of a day-book. The day-book is used to record
the names of people who come to the office each day and the reasons why they came.
In the day-book, the names of the persons who come to the office, the reasons for their
visit, their addresses and whether their problem was solved, are recorded.
This information will enable the paralegal to produce an annual report on the activities
of the office. They will only have to go through the day-book to get the details.
3.5 More about filing and the follow-up work
3.5.1 What is filing?

➢ Filing means keeping information (papers, letters, addresses) in a safe, systematic
place. Information is filed by arranging it in a certain order to enable a person to
find it quickly.
A filing system helps you to decide:

▪ where to put information
▪ into which file to put a paper
▪ in which file to find a paper
▪ where to find an address
Filing is important because it:

▪ helps you not to lose documents
▪ keeps documents clean and tidy
▪ helps you to find documents quickly and easily
▪ helps you to be efficient
3.5.2 What must be filed?

➢ all documents that the office receives – for example, letters, notices, reports and
useful information
➢ all copies of documents sent out by the office
➢ documents about the financial side of the organisation
➢ all case sheets and information relating to cases
3.5.3 The following equipment is needed for filing:

➢ files
➢ a filing cabinet, shelves or something to keep the files in
➢ a date stamp to date letters that you receive
➢ an A4-size hard-covered book to use as a day-boo
61
Important note Files must never be removed from the office. If
documents or statements have to be removed for any purpose, photocopy them first,
so that the original remains in the office.
Technology
Computer software provides for the creation of files, the allocation of file-numbers and
the storage of all relevant new information in respect of new files. Computer
programmes make information easily accessible and reliable.
Client’s documents
Documents belonging to the particular client must be recovered from the file and
handed back once the matter is finalised or when your instruction has ended. Other
important documents that are not handed back to the client must be kept in a safe
place.
Closed files
The allocation of a further chronological reference number to the closed file that links
up with its initial reference is recorded in a register. It makes retrieval of such closed
files easier.
3.6 Mailing
3.6.1 Incoming mail

Incoming mail must be collected daily by the appointed employee and handed
personally to the persons responsible for opening it.
Incoming documents can contain payments, important documents and registered,

certified or other noted post. A reliable person must handle this.
Payments should be immediately dealt with in terms of the relevant accountancy and
bookkeeping procedures, ensuring proper recording and safe receipt thereof.
Proper record of certified and registered post and important documents must be kept
by means of a register, providing for the delivery of such documents to the responsible
person in the office who must sign for it. Mail must be stamp-dated, sorted and
distributed on the day of receipt.
Mail without proper reference numbers can easily be identified through a telephone call
to the sender to ensure that no mail is left unattended. If it is not possible to trace the
matter, it should be returned to the sender with an accompanying letter requiring the
responsible person or reference number to be indicated.
62
3.6.2 Outgoing mail
Outgoing mail must be posted, faxed, delivered by hand, courier or electronically
transmitted.
Outgoing mail must be sent in such a manner that it is cost-effective. (Do not use
couriers when using ordinary post will be just as efficient.)
Records must be kept of documents sent by registered or certified post or delivered by

hand.
The person in an office responsible for the outgoing mail must have all such mail at a
certain time to ensure timely dispatch thereof.
3.7 Telephones
Large offices handle a big volume of telephone calls daily. They make use of a
receptionist who answers the telephone and then routes the call to the appropriate
person.
It is important that the receptionist must know all the employees who work in the office
and what their main tasks are.
A receptionist must always take messages for persons who are not available to speak on
the telephone. These messages must be written down and handed over personally to
the appropriate person.
Activity 3.2
Compile your own telephone directory with the names and telephone numbers of the
people and organisations that you deal with frequently.
➢ Such numbers can include:
▪ The Clerk of the Court
▪ The name of a social worker
▪ Maintenance officials
▪ Attorneys
▪ Bank staff etc.
Activity 3.3
Develop a message card with the required spaces to fill in the relevant information.
➢ Develop your own reference network.
It is advisable to develop your own reference network of people and organisations that
you deal with frequently.
63
3.8 Technology
3.8.1 Photocopying
It is expensive to acquire and maintain a photocopy machine. It is, however, unthinkable
that legal work can be done without a photocopy machine.
If an office cannot afford to install a photocopy machine, the management must ensure
that photocopying facilities are easily accessible. Some stationery shops and post offices
provide photocopying services at a small charge.
A system must be developed to ensure that clients pay for the expense of photocopies
made on their behalf.
3.8.2 Faxing
Fax machines are also expensive to install in an office, but are very helpful in the
dispatching of urgent letters and documentation. Proof that the letter or document was
faxed and received by the other party must always be kept on the file together with
the relevant documents.
Activity 3.4
Visit a dealer who sells photocopying machines and fax machines. Ask the sales
representative to demonstrate how a simple photocopying machine and a fax machine
work.
3.9 Stationery and other necessities

The following stationery and other necessities will be used in an office:
Stationery Other necessities
Paper Diaries
Envelopes Calendars
Files Calculators
Pens and pencils Pin-boards and pins
Erasers and pencil sharpeners Book-shelves
Paper clips Filing cabinets
Staplers and staples Desks and chairs
Scissors Telephones
Rulers Globes
Tape Safe/money box
Stickers
Receipts If technology is used:
Financial books and record books Computer and printer
Fax paper Fax machine
Stamps Plugs
Ink cartridges
64
Keep an inventory of all the items in the stationery cupboard. Every person in the office
who needs stationery must sign for the required items in an inventory book. This book
will assist the person responsible for the office stationery to ensure that stationery
items are always available when needed. Stationery that is too accessible also results
in unnecessary expenses for the office.
If you have done activities 3.1 – 3.4 and have answered all the questions,
you should be able to check that you have achieved the outcomes for this unit.
1. What information regarding a client must a paralegal have on record?

2. What is the relevance of a reference number?
3. What is the purpose of a day-book?
4. Briefly discuss the important issues regarding filing.
5. How do you suggest that incoming mail be handled in your office?
6. How do you suggest that outgoing mail be handled in your office?
7. What technological equipment can be used to assist in the running of an office?
Unit 4
Strategic planning
When you have worked through this unit, you should be able to:
➢ Draft, analyse and interpret a business plan and apply the principles to your own
business
➢ Advise a potential entrepreneur on the elements of a business plan and assist a
potential entrepreneur with the drafting of a business plan for his or her own
business
➢ Develop and design a basic marketing campaign, promoting the legal services that
your office can render
➢ Use the media for purposes of information, education, raising awareness of
political issues, mobilising and advertising
➢ Identify different types of businesses
➢ Differentiate between different types of businesses
➢ Advise on the different characteristics of the various business types and their
advantages and disadvantages
65
➢ Refer a potential entrepreneur to an organisation that helps small businesses
➢ Discuss and explain the different basic principles regarding income tax, provisional
tax and value-added tax
➢ Assist and advise a person on how to register as a tax payer
➢ Assist and advise a person regarding the duties of an employer pertaining to
income tax
➢ Explain and advise regarding the payment of regional service levies
➢ Explain and advise regarding business licences
➢ Draft, analyse and interpret a budget and apply the principles to a business’s
budget
➢ Advise a potential entrepreneur on the drafting of a budget and assist that person
with the drafting of a budget
➢ Manage a current bank account
➢ Explain to another person how to manage a current bank account
➢ Record the flow of money in your office
➢ Explain to and advise another person on recording the flow of money in that
person’s office
➢ Explain and advise concerning the obtaining of business licences.
You must have access to a calculator when dealing with the sections on
finance in this unit.
4.1 The business plan

Before studying the drafting of a business plan, you need to carefully study the different
kinds of business options available.
4.1.1 The elements of a business plan

A business plan is a structured guideline to achieving the goals of your business. It is a
plan of what you intend doing, how you intend doing it, when you want to do it, where
you want to do it and why you want to do it. To define your business in writing commits
you to the business and it helps you to be more focused in your thinking because:
➢ it will help you with marketing the business

➢ it helps you to determine your personal objectives
➢ it will help you with planning the budget of the business
➢ it is important in helping you to access finance
➢ it will provide you with additional skills to assist clients who need this advice.
66
An efficient business plan must at least provide for the following:
a) Heading and introduction:
The heading can contain the name of the proposed business. It can also contain
motivational statements. You have studied, qualified and have skills that you can sell.
b) Descriptions of type of services and target market:
➢ What are the services that the office is going to render?

➢ What is the projected income from each of these services?
➢ Develop a cost structure for the services.
➢ Who is the target market?
➢ What are the needs of the target market?
c) Personal objectives:
➢ To become an entrepreneur
➢ To become financially independent
➢ Personal achievement
➢ Enhancing community status
➢ Family involvement
d) Business Structure
➢ Refer to 4.2 below
e) Resources Plan:
➢ From where is your business going to operate?

➢ To choose the appropriate place, the services rendered, target market and staff’s
needs must be taken into account. The business must be visible and easily
accessible.
➢ Take the following general factors into account:
o Economics: Why do people live in the area? What is their standard of living?
o Population: What is the nature of the population? Income determines the
demand for goods and services.
o Competition: The number and type of competitors.
f) Financial Plan:
➢ Refer to 4.3 below
g) Strategic Plan:
➢ A strategic plan is a description of the ways in which you are going to achieve the
objectives you have set.
It entails the short- and long-term goals of the business, an analysis of the
business’s strengths, weaknesses, opportunities and threats.
67
➢ This analysis is called the SWOT analysis, and it must provide for the market place,
competition and gaining an advantage over the competition.
h) Operational Plan:
➢ This plan provides for the administrative structure of the business, risk
management such as office security and compliance with statutory procedures
such as the Value-Added Tax Act, the Incomes Tax Act, Workmen’s Compensation
Insurance, Regional Services Council Levy and Unemployment Insurance Fund or
any other statutory provision relating to the type of industry that is involved.
i) Client Care Plan:
➢ This plan must briefly set out a policy regarding the handling of clients.
➢ Satisfied clients will always return and will tell other people about your good and
efficient business.
68
See Figure 1 for a schematic representation of the elements of a business plan.
2. Brief description of:

1. Heading & 3. Personal
Introduction ● Practice objectives
● Services
● Target Market
9. Client Care Plan: 4. Business Structure
● Personal ● Sole proprietor

● Product ● Partnership
● Promotion ● Inc co
● Quality Assurance ● Association
measures
8. Operational 7. Strategic 6. Financial Plan: 5. Resources

Plan: Plan: Plan:
● 6 months
● Administrative ● Short-Term Budget – ● Business
Structure Goals (12) Income Premises
● Risk ● Long-Term & Expenditure ● Human
Management Goals (24) ● Budget – Resources
● Statutory ● SWOT Capital ● Equipment
requirements ● Analyses required
● Cash flow
projections
● Controls
Figure 1
Activity 4.1
Prepare a draft business plan for your business for presentation to a potential funder.
4.2 Types of business

Different kinds of businesses are established in different ways. Each kind of business
has its own characteristics that make it suitable for certain circumstances. Certain
business types have more advantages than others, depending on the circumstances and
the purpose for which it is needed. Some kinds of businesses are regulated by Statutes
such as:
69
➢ Companies: the Companies Act 71 of 2008.
➢ Close Corporations: the Close Corporations Act 69 of 1984
Other types of businesses are governed by common law and by the law of contract and
other statutory provisions, such as:
➢ Partnerships
➢ Sole traders
There are different ways of starting a business. The law prescribes different formalities.
For example, whether you must register the business and how you must register if. The
law also prescribes how these businesses must be run. If you want to start a business,
you must decide what you want your business to be.
4.2.1 A sole trader
A sole trader is a single-owner enterprise. It is also called a sole

proprietorship and means one person owns the business. Although it is advisable for the
sake of good management to keep records of the business, a sole trader is not by law
required to keep records, except for the purposes of VAT (if applicable) and income
tax.
4.2.2 Partnership
The Companies Act 71 of 2008 does not limit the number of partners. The
partners own the business together. A partnership is a contractual relationship between
persons with the aim of making a profit and to share in it.
The partners can write their own partnership agreement or ask an attorney to do so.
The following points must be included in the partnership agreement:
1. How the partners will participate in the management of the business.

2. How the partners will share the profits.
3. What happens to the assets of the business (the cages, the chickens, etc.) if the
partnership ends.
4. What happens if one of the partners wants to leave the partnership.
5. The partners are personally liable for the debts of the partnership. Not only that,
but the law does not recognise a difference between the different partner’s assets
and debts. For example:
“A’s” new partner “C” builds a house but she does not pay the builder. He can sue
the partnership and attach and sell the partnership’s property in order to obtain
his money.
70
6. A restriction on the partners to sell or lease or do anything with an asset without
the permission of the other partners.
➢ The partnership ends when:
▪ the partners agree that they will no longer do business together as partners,
or
▪ the partners change or,
▪ a partner dies or,
▪ a partner is declared insolvent by the Court.
➢ Every time a new partner joins, the partners must sign a new agreement.
A partnership can also give their business a name, for example Kiep-Kiep. When partners
complete any forms, sign contracts or open bank accounts, they must write their own
names, then write “trading as” (or “t/a” for short and then write down the name of the
business.
It is advisable for the sake of good management that a partnership must keep records.
This will also help to avoid or resolve disputes amongst the partners. There are,
however, no requirements by law that a partnership must keep financial records, except
for VAT and income tax purposes.
4.2.3 A Close Corporation
A close corporation is like a company, only less expensive and less

complicated to run. The new Companies Act of 2008 came into operation on the 1st of
May 2011 and it replaced the Companies Act of 1973. One of the effects of the new
Companies Act is the phasing out of close corporations. Existing close corporations can
elect to continue to exist until deregistered, dissolved or converted into a private
company governed under the new Companies Act. It will be possible for businesses to
continue to run their operations out of existing close corporation if they so wish.
The close corporation is intended to serve smaller businesses, creating a flexible form
of corporate entity with advantages of simplified and inexpensive incorporation,
separate legal existence, limited liability and less onerous financial reporting
requirements.
The people who own and manage the close corporation are called members. A close
corporation cannot have more than 10 members. The law sees a close corporation as
separate from its members. The CC is a juristic person. A juristic person is an entity
separate from its members, with rights and duties and the ability to participate in
business.
71
This means that unlike a sole trader and a partnership, the assets and debts of the
business belong to the close corporation and the personal assets and debts of the
members have nothing to do with the CC.
➢ For example: “A”, “B” and “C” expanded their business and registered a Close
Corporation. Fifty of their chickens contracted Newcastle’s disease and died. “A”,
“B” and “C” made no profit and don’t have the money to pay the monthly account
of the chicken feed supplier.
The supplier can now only issue summons against Kiep-Kiep CC. If Kiep-Kiep CC
cannot pay the supplier, the supplier cannot attach and sell the members’
personal property such as their beds and kitchenware.
Suppliers are scared that a CC may have no money to pay. Therefore suppliers
often make sure that somebody signs surety for the CC, which means that if the
CC does not have the money to pay, the person who has signed the surety (usually
a member) will have to pay (be liable for) the debt. Members of a close
corporation must always write CC behind the name of the close corporation - for
example: Kiep-Kiep CC. If members do not put CC behind the name whenever they
write it, the law does not see the CC as separate from its members and the debts
and assets of the CC are not separate from the debts and assets of the members.
If the business is a CC and the business has a letterhead, the registration

number of the CC must be printed on the letterhead.
The CC continues to exist even when the members change. It does not have to be
registered again, but an amended founding statement (CK2) must be filed at the
Registrar of Close Corporations.
The Close Corporation can stop carrying on business and legally end when it gets
deregistered or liquidated. Both methods are prescribed in the Close Corporations Act,
and it is advisable to obtain the assistance of an attorney in this regard.
4.2.4 A company
A company is also a juristic person with rights, duties and the ability to
take part in business, separate from the personal rights and duties of the company’s
owners.
72
The Companies Act 71 of 2008
The Department of Trade and Industry’s policy paper (South African Company Law for
the 21st Century – Guidelines for Corporate Law Reform (GG 26493 of 2004-06-23) which
envisaged the development of a “clear, facilitating, predictable and constantly
enforced governing law”. According to the policy paper competitiveness and
development of the South African economy should be promoted by company law.
This should be done by means of: (1) encouraging entrepreneurship and enterprise
diversity through simplifying the formation process of companies and reducing the
associated costs; (2) promoting innovation and investment in markets and companies
through a predictable and effective regulatory environment and flexibility in the
formation and the management of companies; (3) promoting the efficiency of
companies and their management; (4) encouraging transparency and high standards of
corporate governance; and (5) ensuring compatibility and harmonisation with
international best practices.
Purpose of the Companies Act 71 of 2008 is as follows:
The Companies Act 71 of 2008 is replacing the Companies Act 61 of 1973 and was
enacted on 1 May 2011.
A company is defined as a juristic person incorporated in terms of this Act, a

domesticated company or a juristic person that, immediately before the effective date
–
(a) was registered in terms of the-
(i) Companies Act, 1973 (Act 61 of 1973, other than an external company as
defined in that Act; or
(ii) Close Corporations Act, 1984 (Act 69 of 1984), if it has subsequently been
converted in terms of Schedule 2;
73
(b) was in existence and recognised as an ‘existing company’ in terms of the
Companies Act, 1973 (Act 61 of 1973); or
(c) was deregistered in terms of the Companies Act, 1973 (Act 61 of 1973), and has
subsequently been registered in terms of this Act.
The Companies Act 71 of 2008 draws a distinction between profit and non-profit
companies. Non-profit companies may be formed by three or more persons and must
state in their memorandum of incorporation one or more of the following objects:
• A public benefit object
• An object relating to cultural or social activities
• An object relating to communal or group interests.
The name of the non-profit company must end with “NPC”.
A profit company, on the other hand, is incorporated for the purpose of financial gain
for its shareholders and may be formed by one or more persons. There are four types
of profit companies, namely:
(i) A state-owned company: An enterprise that is registered in terms of the Act
which falls within the meaning of ‘state-owned enterprise’ in terms of the Public
Finance Management Act, 1999 (Act 1 of 1999); or is owned by a municipality, as
contemplated in the Local Government Municipal Systems Act, 2000 (Act 32 of
2000). The name of a state-owned company must end with SOC Ltd.
(ii) Private company: Is a profit company that is not a public, personal liability or
state-owned company and satisfies the criteria that prohibit it from offering
securities to the public and restricts the transferability of its securities. The
name of a private company must end with the word Proprietary Limited or (Pty)
Ltd.
(iii) Personal liability company: Is a profit company that satisfies the criteria of
being a private company and its memorandum states it is a personal liability
company. The name of a personal liability company must end with the word
Incorporated or Inc.
(iv) Public company: Is a profit company that is not a state-owned company, private
company or personal liability company. The name must end with the word
Limited or Ltd.
The duties of directors have been a problematic area of company law. These duties,
however, remain important because they play a role in ensuring the promotion of
corporate governance principles. The Companies Act 61 of 1973 did not contain clear
rules regarding the duties and liabilities of directors and corporate governance. The
regulation of these aspects was largely left to King II and the common law. Directors’
common-law fiduciary duties require them to exercise their powers bona fide and for
the benefit of the company. In addition, they have the duty to display reasonable care
and skill in carrying out his office. Director’s fiduciary duties entail that they act in the
best interests of the company, avoid conflicts, do not take corporate opportunities or
secret profits, do not fetter their votes and use their powers for the purpose conferred
and not for a collateral purpose. The duty of care, skill and diligence entails that
“directors must manage the business of the company as a reasonably prudent person
would manage his own affairs”.
74
The Companies Act now contains provisions dealing with directors’ general duties that
are comparable to the common-law duties of directors. The standards of directors’
conduct are covered by section 76 of the Companies Act. Section 76(3) provides as
follows:
“[A] director of a company, when acting in that capacity, must exercise the powers
and perform the functions of director –
(a) in good faith and for a proper purpose;
(b) in the best interests of the company; and
(c) with the degree of care, skill and diligence that may reasonably be expected
of a person –
(i) carrying out the same functions in relation to the company as those
carried out by that director; and
(ii) having the general knowledge, skill and experience of that director.”
Section 76(2) further provides that:

“A director of a company must –
(a) not use the position of director, or any information obtained while acting in
the capacity of a director –
(i) to gain an advantage for the director, or for another person other than
the company or a wholly-owned subsidiary of the company; or
(ii) to knowingly cause harm to the company or a subsidiary of the company;
and
(b) communicate to the board at the earliest practicable opportunity any
information that comes to the director’s attention, unless the director –
(i) reasonably believes that the information is –
(aa) immaterial to the company; or
(bb) generally available to the public, or known to the other directors; or
(ii) is bound not to disclose that information by a legal or ethical obligation
of confidentiality.”
A director stands in a fiduciary relationship with his company with the result that he
has a duty to act in good faith towards the company. This means that he must exercise
his powers as director for the benefit of the company and avoid a conflict between his
own interests and those of the company. The duty of care, skill and diligence is another
important duty of directors. A good illustration of how this duty works can be found in
Fisheries Development Corporation of SA Ltd v Jorgensen 1980 4 SA 156 (W). In this
case the court stated the following:
• A considerable degree of the nature of the company’s business and of any particular
obligations assumed by or assigned to a director must be taken into account when
dealing with a director’s duty of care and skill. A distinction must also be drawn
between the so-called full-time or executive director, and the non-executive
director. An executive director participates in the day-to-day management of the
company’s affairs or of a portion thereof whereas a non-executive director has not
undertaken any special obligation and is not bound to give constant consideration to
the affairs of the company.
75
The latter’s duties are of an irregular nature in that he can be required to attend
periodic board meetings, and any other meetings which may require his attention.
He is not, however, bound to attend all such meetings, though he ought to whenever
he is reasonably able to do so. He can also call for further meetings if he believes
that they are reasonably necessary.
• His duties and qualifications are not listed as being equal to those of an auditor or
accountant nor is he required to have special business acumen or expertise, or ability
or intelligence, or experience in the business of the company.
He is nevertheless expected to exercise the care which can reasonably be expected
of a person with his knowledge and experience. He is not liable for mere errors of
judgment.
• A director can delegate any duty that may properly be left to some other official.
When doing so a director is, in the absence of grounds for suspicion, justified in
trusting that official to perform such duties honestly. He is entitled to rely upon and
accept the judgment, information and advice of the management, unless he has
proper reasons for querying it. He is also not bound to examine entries in the
company’s books, however; he should not accept information and advice blindly.
When he accepts information and advice, he is entitled to rely on it, but he should
give due consideration and exercise his own judgment in the light thereof.
If a director is in breach of his duty of care, skill and diligence he is liable to the
company in delict for damages and if, in addition, a contract exists between the director
and his company he is also guilty of breach of contract. It is thus clear that directors cannot
be held liable for mere errors in judgment as illustrated by Fisheries Development. It is imperative
to remember that directors act in the best interest of the company and with the required care and
skill. They must always take reasonably diligent steps to become informed about the matter at hand
and although they are allowed to take risks, this cannot be done in a reckless fashion. It must also
be remembered that the directors of a company should promote the interests and success of the
company in the collective best interests of share-holders.1 This can also include employees,
customers and suppliers as the circumstance requires.
Activity 4.4
Point out the advantages and disadvantages of each of the following business types:
➢ sole trader
➢ partnership
➢ close corporation
➢ company
1
DTI Policy Paper 23.
76
Activity 4.5
Sara wants to start a small business where she buys and sells second hand clothing. The
only other people involved in the business will be her sister Emily (a rehabilitated
gambler), who will assist her in the running of the business and their father Dave, who
will provide the initial capital to start the business. Each of them hopes to make a profit
out of the business. Advise Sara on the type of business that will best suit their
circumstances. Explain your answer carefully, referring to the different types of
businesses, their advantages and disadvantages and the immediate legal aid available
for establishing them. Be sure to consider Sara’s circumstances.
4.3 The budget

We discuss the principles and terminology of budgeting and financial records according
to the 1999 Legal Education Action Programme’s explanations and examples of
budgeting and financial recording in a paralegal advice office.
4.3.1 Definition
A budget is a projection of how the financial side of the company will run.
It sets out the amounts the organisation expects its income and expenses to be for a
fixed period of time, such as a year. In other words, the budget tells you how much
money the organisation thinks it will need to do its work in the next year, where it
hopes some of the money will come from and how much money it still needs to find. All
the elements of a business plan must be taken into account when a budget is drafted.
4.3.2 Income and expenses
No one knows how much the income of the business will be. It is very
important to have a business plan that will assist you in determining projected income
and expenditure. A budget is a projection of the income and expenditures of an
organisation. It is actually nothing more than a list of all expenditure set off against the
projected income. If you know what your expenditure will be, you will know how much
your income must be to cover all the expenses and to make a profit. Income is the
money that the organisation receives. Expenses are the amounts of money an
organisation pays out. It is always necessary to have two budgets. The one will be to
project the income and expenditure of the business and the other will be to project
how the capital received will be used.
4.3.3 What period of time should a budget cover?

77
There is no fixed rule about this. A budget can cover any time from months to years.
With an overall budget for an organisation, you need to budget for at least two years.
This shows a sense of commitment and continuity. If you are preparing a budget for
more than one year, you must remember to add on a percentage to cover the cost of
living increase for each year. This is called “inflation”. So, if salaries cost R20 000 in
1997, they should cost R23 000 in 1998 if the cost of living goes up by 15%. Find out
what the cost of living is by reading what economists say in the newspapers or by talking
to someone who knows. In preparing a budget for more than a year, you need to
remember that some projects could expand. The office may also set up new projects,
bring out a new publication, get new staff and new equipment.
4.3.4 How does one calculate expected expenses and

income?
Before you can work out what your organisation’s expenses will be and how much money
you will need, you must be clear about the organisation’s objectives and how you plan
to achieve them in the period for which you are preparing a budget.
4.3.5 What does the organisation spend money on?

Once you are clear about what work the organisation will do for the time the budget
covers, you must write down everything that costs the organisation money. Start off
with a list of everything you can think of. Afterwards you can put the items into groups
or categories.
So your final list could look like this:
Staff: Accommodation:
● salaries ● rent
● medical aid ● electricity, water
● pension fund
● UIF
Administration: Training Department:

● stationery ● transport
● telephone, fax ● food
● postage ● costs of venues
● bank charges ● accommodation for participants
● groceries
Equipment: Publications:
● rent/purchase ● printing costs
● repair and maintenance ● distribution costs
78
4.3.6 How much does each category cost?
When you have worked out what you spend money on, you can work out how much each
item and each category costs. You can use your own records to work out the costs. For
example:
Stationery at the Ezikweni Advice Office cost R150,00 in the past year.
R150.00 + 11% inflation = R166.50 per month

R166.50 X 12 months = R1998.00 for the year
But the record shows that the number of clients the Advice Office saw over the past six
months increased by 10% every month.
Then the calculation looks like this:

R150.00 + 11% inflation
= R150.00 + R16.50 = R166.50
R166.50 + 10% more

= R166.50 + R16.65 = R183.15 per month
(10% more clients means extra money to be spent on stationery)
R183.15 X 12 months = R2197.80 for the next year
If this is the first time that your organisation is preparing a budget, you should make a
list of the items and categories you think you will have to spend money on. Remember
to include those items which you will need in the beginning, but that you will not have
to buy again, such as desks, chairs, kettle, filing cabinets, rent deposit, telephone
installation, advertising jobs, computer and printer. This is called capital outlay.
Running costs are those costs that you spend on a regular basis to keep the organisation
going. It is important to include a section in your budget on expected income. This
means the income that you expect to get from your own fundraising or membership fees
and so on. You are then telling the funder what your needs are, and also how you expect
to pay for these needs.
When you have calculated your expected expenses and income, the next step is to write
your budget down in a way that is useful to the organisation and to funders. For the
organisation’s own use it should be possible to understand, at any time, how amounts
were decided upon and what they are. Motivations for particular items in the budget
do not have to be written into the budget, but they can be part of the written proposal
or they can be attached to the budget as notes. Where you think that something in the
budget may be unclear to the reader, you may include a note to explain it. For example,
when in the first year of the budget you have a fairly small amount, but in the second
year it is much bigger, you should have a note explaining the big increase.
79
If you are preparing a budget to send to funders, you will have to send
certain other documents with it. These could include:
➢ Overall funding proposal

➢ Project proposals
➢ Annual report
➢ Programme of action for the year to come
➢ Audited statement
➢ Copies of publications (if available)
➢ Copies of newsletters (if available)
Consider the following example:
Expected expenditure (in rands) 1998/99

Administration: Auditors 1 500
Bank charges 300
Equipment 2 500
General office expenses 1 800
Rent 4 800
Stationery 1 200
Telephone and postage 2 400
SUB TOTAL 14 500
Staff: Salaries (1 person) 21 600

Staff training 800
SUB TOTAL 22 400
Publications: Printing 15 000

SUB TOTAL 15 000
Training: Photocopying 1 200

Travelling 8 500
SUB TOTAL 9 700
_______________________________________________________________________
OVERALL EXPENDITURE TOTAL 61 600
_______________________________________________________________________
Expected income (in rands) 1998/99
Income generated: Raffle 3 500
Disco X 2 6 000
Monthly jumble sale 200
SUB TOTAL 16 700
Donations: Already received 45 000

SUB TOTAL 45 000
_______________________________________________________________________
OVERALL INCOME TOTAL 61 700
______________________________________________________________________
Dated: 15 January 1998
80
In order to calculate the amount that you can spend each month, you must divide your
total annual budget by 12 months. For example, if your total expenditure budget is R61
600, then you should be spending about R5 100 per month. An audited statement is the
complete record of all your expenditure and income for a year as shown by your
bookkeeping system, checked and approved by a qualified accountant. Organisations
should have their bookkeeping audited (checked and approved by an accountant) at the
end of each financial year. The financial year is different from the ordinary year. It
does not go from January to December, but can be from April of one year to March of
the next. This will differ from organisation to organisation. The audited statement
shows exactly how much money was spent in the year, what it was spent on, where the
income came from and whether you spent more than you had, or less. Funders also use
the audited statement to check how good the financial management in your
organisation is before they give you any more money.
4.4 Bank (current) accounts

When you put money into a bank, the bank opens an account for you. When you open a
new account you must know:
➢ What kind of account you want

➢ What your account is called
➢ Who the signatories for your account are (signatories are people who can sign for
the money).
The easiest kind of account for an organisation to use is a cheque account. It is also
known as a current account. The customer deposits the money and the bank issues the
customer with a chequebook. The customer may withdraw money from the account by
making out cheques to pay someone directly or to make a cheque for cash. The
chequebook is used to draw money out of the account.
Putting money into the account is called making a deposit. When you deposit money,
you must fill in a form at the bank called a deposit slip. The bank will give you a stamped
copy of the deposit slip. You must file this in your records as proof that such a deposit
was made.
Money can also be put in a cheque account at an automatic teller machine, if the bank
has issued a bankcard to enable transactions to be processed at such a facility. You
must keep the deposit slip issued by the machine as a proof of the deposit that was
made.
Taking money out of the account is called a withdrawal. Only those signatories that
have authority to sign the cheque can sign it. Nobody else may sign that cheque. With
a cheque account you use a cheque to withdraw money. A cheque is an order to the
bank to pay money over to the person named in the cheque. On the left hand side of
the cheque is the stub. The stub stays in the cheque book as a record of the cheques
that you sign. Every cheque gets issued with a printed number and there is a stub in the
chequebook with a corresponding number.
81
When writing out a cheque, always bear the following in mind:
1. The name of the bank where the account is kept

2. The branch of the bank where the account is kept
3. The account number of the specific account from which the money must be paid
4. The number of the cheque that is issued
5. The person or company to whom the money is to be paid. Make sure the name of
the person or institution is correct
6. A cheque must be dated. The bank will only pay the cheque on the given date or
thereafter, within a period of six months
7. The amount must be written in words and again in figures. Ensure that the amount
in figures is exactly the same as the amount in words, otherwise the bank will not
pay out the cheque.
8. The stub that is left in the chequebook should be filled in to help you to keep a
record of the financial transactions in the cheque account.
9. The person who signs and issues a cheque is the drawer.
10. The drawer not only writes out the name and amounts on a cheque but can also
write certain instructions on a cheque to ensure that the cheque is safe.
82
0140 1 THE BIG BANK 01-85-06-06
_______________________ Registered Bank
Aan/To_________________ Randburg
1 Date 6 1999-06-30
_______________________ 2 0
Balance________________ Betaal of Toonder
Paid in _________________ 5 TELKOM_____________________________or Bearer
Balance________________ Five hundred Rands___________________
Other debits_____________ Only________________________________ 7 R500-00
Balance________________
This cheque_____________ 9
Balance________________ ______________________
8 pp PARALEGAL/J MBASA
4 0140 0185506 06 3 02123469
Study the following example of a cheque carefully by comparing the numbered

instructions with the recorded data on the cheque.
Take note of the following: You write out a cheque for R100 on 3 May
1999. The person to whom that cheque is paid only banks the cheque on the 7th of
August 1999. You must ensure that there is always R100 available in the account from
the date on the cheque (3 May 1999) until the date when the other person banks that
cheque (7 August 1999). A cheque can be banked or cashed for up to six months after
it was issued!
The bank sends out bank statements once a month. This is a record of:
➢ The cheques that have been issued in that month which the bank has already paid
out.
➢ All the deposits and withdrawals made that month.
➢ The bank charges charged during that month.
Please take note of the following important points regarding cheques:
➢ Do not leave spaces, which can tempt people to fill in other amounts to obtain
more than the amount due. Never, ever write out a blank cheque! A blank cheque
is a cheque which is signed but no amounts are filled in.
➢ Banks charge fees for this service based on how often the account is used.
Organisations and businesses normally pay a minimum fee per month and then
additional fees depending on how big the amount of a cheque is.
➢ If the drawer crosses out the words “or bearer”, the cheque cannot be presented
by anyone but the payee.
83
➢ The drawer crosses a cheque by drawing two parallel lines over the face of the
cheque. No person can be paid out in cash for that cheque.
➢ The words “not transferable” can be written between the lines. This prohibits any
further transfer of the cheque. It orders the bank to pay the specified payee only.
A “non-transferable” cheque can only be paid into a bank account in the name of
the person to whom the cheque has been made out.
➢ The words NOT TRANSFERABLE must be written or stamped boldly across the face
of the cheque, preferably in red ink.
➢ The words “not negotiable” can be written between the lines. This protects the
owner in that he can claim the amount from anyone who possesses the cheque
after it has been stolen. These words mean that the cheque cannot be endorsed
by anyone else. Only the payee can be paid the amount.
➢ If there is not enough money in the drawer’s account to cover a cheque, a cheque
may bounce. The cheque is returned to the person who paid it in, with the words
‘refer to drawer’ or R/D’ on it. It means the bank will not pay the money and the
payee must contact the drawer to obtain the payment.
4.5 Financial records

It is very important to keep strict records of the flow of money in a business or an office.
A strict recording mechanism will minimise the possibility of embezzlement of money
by dishonest employees. Employees who work with money must be reliable and must
not have reputations for dishonesty.
Let us consider daily records. The most important stationery that you must keep for
your daily records are:
4.5.1 Receipt book

When anyone pays any money into the organisation, you must give them a receipt. This
receipt proves that money was paid. You give the original receipt to the person who
paid the money and the duplicate is left in your receipt book.
When issuing a receipt you should always and in the following order:
1. Write the date when you received the money

2. Write down the name of the person from whom you received the money
3. Write down the amount of the money in words and in figures
4. Write down the reason why the person paid you the money or the purpose that it
was received for
5. The person who writes out the receipt must sign their name on the receipt
6. Write down in what form the money was paid – cash or by cheque.
Study the example carefully by comparing the numbered instructions with the recorded
data on the receipt:
84
(1)
No 473 18/4/1998
Received from _______________Mrs Mngade (2)_______________ R c
Ontvang van
__________________________________________________________
the sum of ______________twelve_______________ (3)
die som van __________________________________ Rand 12 00
________________________________________________ cents
sent
for _________Membership___(4)_________
vir _________Gngwenya OCA___(5)______
With thanks/Met Dank
(cheque) (6)
4.5.2 Petty cash

➢ The next daily record is for petty cash. You should keep some money in the office
for small payments. If you need R5 for stamps, tea or milk, you will use petty cash
to make these payments. How does petty cash work? Take note:
▪ The treasurer draws an amount of money out of the bank, using a cheque.
This amount could be R50 or more, depending on what your monthly
expenses are and how busy your office is
▪ This money is put in a locked metal box called a petty cash box
▪ If someone needs money to pay for something for the organisation, the
treasurer will give it to them from the petty cash box.
Look at the following example of a page from the petty cash book showing
the amount and purpose of money borrowed or used by one person:
➢ All the petty cash that is spent must be recorded on a petty cash voucher
➢ The receipts, invoices or cash slips that you get when you pay for something must
be kept. These slips should be pinned onto the petty cash vouchers.
PETTY CASH VOUCHER / KLEINKASBEWYS
_________Date/Datum______________15/3______________________1998_______
FOR WHAT REQUIRED AMOUNT
BENODIG VIR BEDRAG
______________________________________________________________________
Stamps and Envelopes for AGM minutes 17 50
Signature/Handtekening …………………………………………………………………………
Folio ……………………. Passed by ………………………………………………………….

Goedgekeur
85
Activity 4.8
Consider your own purse as a ‘petty cash box’ for one week. Record your expenses on
a petty cash voucher and balance them at the end of the week with the amount you
have available in your purse.
At the end of each month the treasurer must record the information from
all the vouchers into the petty cash book. You can use an ordinary school exercise book
for the petty cash book. At the end of the month, you must balance the petty cash
book. To do this you must:
➢ Add up the expenditure column to get a total. This is called TOTAL EXPENDITURE.
➢ The treasurer must then put back into the petty cash box the same amount of
money he or she took out during the month. So, in other words, he or she must
put back the total expenditure.
➢ He or she then records this under income and adds up the income column.
Study the following example of a page from the petty cash book showing a number of
entries:
APRIL 1998
DATE DETAILS INCOME EXPENDITURE

1 Balance 100.00
7 Stamps for AGM minutes 12.48
12 Glue and cardboard for poster 17.50
17 Envelopes for office use 2.50
19 Milk and sugar for office use 7.54
20 New window for office 16.50
21 Tea for office 4.75
25 Typing paper 16.00_____________
TOTAL EXPENDITURE 77.27
4.5.3 The cash book
Now we come to another important form of financial record keeping. At

the end of each month all the records you keep during the month are recorded in one
book called the cash book:
➢ This includes all bank deposit slips, cheques, receipts and petty cash. You can buy
cash books at stationery shops
➢ The deposit slips are the records of the income
86
➢ The cheques and the petty cash book are the records of the expenditure
➢ The income and expenditure are recorded in the cash book
➢ The whole of the left hand page is the income side of the cash book
➢ The whole of the right hand side page is the expenditure side
➢ All the cash and cheque payments and bank charges are recorded on the
expenditure page.
In this example, showing the expenditure side of a cash book, there are 5 main columns
on the expenditure page and they have been numbered for you:
1. Cheque number (the actual number of the cheque, not the amount)
2. Date of each cheque
3. Details:
Write down the name of the person or organisation to whom the cheque was made
out. For a cash cheque, write ‘cash’; and what the cash was used for (for example,
petty cash).
4. The analysis column tells you what your expenses were, for example petty cash,
rent, printing, transport, sundries, and so on. You must decide how many columns
you need and what headings you need for the columns.
5. You write down any withdrawals from the bank.
CASH BOOK (EXPENDITURES) MAY1998
(1) (2) (3 (4) (5)

Cheque Date Details Petty Rent Printing Transport Sundries Bank
No cash
853 1 Cash 50.00 50.00
854 4 Small 57.50 57.50
printers
855 7 Johan- 78.48 78.48
nesburg
Motors
956 19 Russel 25.00 25.00
Furniture
857 24 Small 17.48 17.48
Printers
Please note that all expenditure must be written in the correct analysis
column and under bank. Bank charges are always recorded under ‘sundries’.
Study the following example of the income side of the cash book. In this example there
are 5 main columns on the income left-hand page:
1. Receipt number
2. Date of receipt
3. Details
87
Write down the name of the person or organisation that gave the money.
4. Analysis columns
The analysis columns tell us the kind of income it was, for example donations,
subscriptions, books, sundries, and so on. You must decide how many columns you
need and what headings you need for these columns. Sundries is for any kind of
income – it is like a ‘general’ column (see the example below).
5. Bank
The deposits you put into the bank account are filled in this column.
The amount from each receipt must be written in the correct analysis column. The
amount is also written under “bank” when you deposit the money (see example below).
CASH BOOK (INCOME) MAY 1998
(1) (2) (3) (4) (5)

Rec Date Details Sundries Donations Books Subs Bank
No
1 Balance 315.54 315.54
473 2 Mrs 12.00
Radebe
474 3 Mr 30.00
Johnson
475 4 Mrs 3.50 45.50
Mngade
476 14 Mr Nkosi 12.00 12.00
After you have recorded the income and expenditure, you need to work out how much
money is left over at the end of the month. This is the balance. To get the balance,
subtract the expenditure from the income. See the example:
➢ Your total income for May 1998 was R571,54.

➢ Total expenditure was R354,94.
➢ To find out how much money was left over, take R354,94 from R571,54. The
balance is R216,00.
➢ The balance in your cash book should be the same as the balance in your bank
account.
The analysis columns tell us what kind of expenditure and what kind of income there
was. The analysis columns help us to answer questions like “How much money did we
get from subs in May 1998?” To answer this kind of question you need to find the totals
for each analysis column.
Activity 4.6
➢ Draw up a table with all the columns of the income and expenditure pages in a
cash book. Make the following entries:
88
1. The balance brought forward from April is R4 500,00.
2. The office rent of R1000,00 per month is paid to Office Properties cc with
cheque no: 201 on 2 May.
3. On 4 May Mr. Dean pays an amount of R250,00 for annual subscription fees,
you issue receipt no: 321.
4. You receive an amount of R500,00 on 6 May from LABOUR consultants cc, for
acting as a mediator in a labour dispute, you issue receipt no: 322
5. You buy a desk for R100,00 from Second Hand Furnishers and pay with
cheque no: 202 on 7 May.
6. You office receives a donation of R200,00 from The Big Bank and you issue
receipt no: 323 on 11 May.
7. On 12 May you draw cheque no: 203 to the amount of R50,00 for petty cash.
8. Mr. Nkosi pays his annual subscription fees of R250,00 on 24 May and you
issue receipt no 324.
9. PRINT JOB prints promotional pamphlets for your offices and they charge
you R70,00 on 25 May and you pay them with cheque no: 204
10. An amount of R200,00 is paid on 30 May with cheque no: 205 for TELBEL, the
telephone company.
➢ What is the balance at the end of May?
The bookkeeper must give a monthly report to the management or

executive committee on the income and expenses of the organisation for that month.
All the books should be up-to-date for the report back – for example, the petty cash
book and the monthly cash book. The bookkeeper should have all the cash slips, bank
statements, cheque book stubs, invoices, petty cash vouchers, receipts and so on, at
the meeting in case there are questions from the committee.
4.6 Marketing and advertising

To run a financially successful organisation, it is necessary to bring your organisation
and the services that you are rendering to the attention of potential clients. There is
no better advertisement for a business or organisation than proven success. If the
paralegal office assists persons effectively, renders its services effectively and speedily
and resolves the person’s problems sufficiently and effectively, the satisfied client will
tell other people in the community about the excellent service he or she received and
will advise people to use that office. This type of advertisement costs nothing but is the
most valuable to any business or organisation. It will be necessary for a newly
established office to market the services that it will be rendering in that community.
Marketing is the tool that you use to make your business or organisation well known in
the community. A successful marketing strategy must contain information regarding
the:
• Product: e.g. legal services

• Price: Your decision within statutory limitations
89
• Place: Your place of work
• Promotion: Ways and means of promoting your business
The media help organisations to communicate with other people. Examples of media
are:
• Pamphlets
• Posters
• Newsletters
• Badges
• Banners
• T-shirts
• Newspapers
• Radio
• Television
What can one use media for?
➢ You can use media to inform other people about a situation, an event or about an
organisation. For example, you can use media to inform people that pensions are
a legal right.
➢ You can use media to explain facts to people, for instance why pensions are a
legal right. This educates people about pensions.
➢ You can use media to politicise people, to make people more aware of what is
happening around them. For example, you can link pension problems to a
campaign against corruption.
➢ You can also use media to ask people to do something. This is called mobilising.
For example, you can try to mobilise people to protest by coming to a meeting.
➢ You can also use media to advertise an event.
It is important to know what your aim is when you use media. When
planning a pamphlet or a poster there are three things to think about:
➢ The aim of the pamphlet or poster

➢ Who the pamphlet or poster is for (the target group)
➢ What we want to say (the content)
The design of the pamphlet or poster is also very important. Remember these things:
➢ Make the language easy to read.

➢ Use different kinds of headings such as underlining, boxes, capitals. Most
computers can be used to make attractive pamphlets by changing the font size for
different headings.
➢ Arrange the writing in different ways.
➢ Use pictures.
➢ Don’t make the design too cluttered so that it becomes confusing or unreadable.
90
➢ Don’t use photographs of people without their consent.
➢ Be sensitive towards gender, race, religion, disability and illness.
The pamphlets must include the name of the organisation who produced
the pamphlet, an address and who printed the pamphlet. You must get permission from
the local council in your area if you want to put up any posters in public. In many areas
you have to pay a deposit.
Newsletters are the newspapers of an organisation. Newsletters usually come out

regularly, for example four times per year, or every two months. They take a lot of
work to produce. Before deciding to have a newsletter you should decide if:
➢ There are enough people to work on the newsletter

➢ There is enough money to pay for it
➢ There are some experienced people who can help with the first few issues
Activity 4.7
Design a pamphlet to promote your paralegal office. Make use of the 4 “P’s” used in a
marketing strategy and some of the examples of media.
4.7 Taxes
Individual persons and businesses are required to pay taxes to the Government. This
money provides the government with funding to run the day to day affairs of the country
and to provide services such as health, roads, education, safety and many more to the
citizens of the country. Individuals and businesses pay tax in several forms.
Individual persons (ordinary citizens) normally pay income tax and value added tax
(VAT). Businesses also pay income tax, value-added tax and several other taxes
depending on the type of business – e.g. an import-export company will also have to
pay excise duties. People who buy or acquire fixed property must also pay a type of tax
called transfer duty.
4.7.1 Sources
Please take note of the following terms and Acts:
➢ Income tax in general

➢ Provisional tax
➢ Value added tax
➢ The Income tax Act 58 of 1962
91
➢ The Value Added Tax Act 89 of 1991
➢ SARS is the South African Revenue Services.
4.7.2 Who must register as a tax payer?

Every person who is obliged to pay taxes must register as a taxpayer.
4.7.3 How must a person register as a tax payer?

Contact the SARS in your area and ask for the applicable form. Fill it in and send it back
to them. Instead of completing the form, you could send the following information to
SARS and they will complete the form:
➢ Your full name

➢ Income tax reference number, if you have one
➢ The revenue office where you have sent tax returns before, if you have
➢ Occupation or job
➢ Date when you first started working
➢ Marital status (married, divorced, separated, single, widowed)
➢ Number of children under the age of 18 (including step-children and adopted
children)
➢ Type of income: do you earn a salary, a weekly wage, commissions, rental on
something you rent out, interest on money in the bank or investments, etc.
➢ Immigrants should give the date when they arrived in South Africa.
4.7.4 The duties of an employer
An employer is any person who pays or is liable to pay a person an amount

by way of remuneration. Employers must contact the SARS office in their area and
register as an employer.
SARS requires the following information from the employer:
➢ The employer’s name

➢ If the business is a sole trader or a partnership, give the name of the sole trader
or of the partners. If the business is a CC or a company, give the name of the CC
or the company.
➢ The street and postal addresses of the business
➢ The telephone number of the business
➢ The number of employees.
SARS will let the owner of the business know that it has received the relevant forms.
SARS will ask for more information. When the employer has given the information that
SARS asked for, they will send these documents and forms to the employer:
92
➢ A card which says which SARS office the employer is registered with and gives the
telephone number and address of the office
➢ A booklet with forms
➢ A book of tax tables, which shows how much tax must be taken from each
employee’s salary and sent to SARS.
When the employer pays the employees, she or he must deduct tax from their wages.
At the end of every month, the employer pays the tax to the Receiver of Revenue. The
employer must pay over to SARS the employees tax deducted within 7 days after the
end of the month during which the amount was deducted.
The prescribed EMP201 return is automatically supplied to the employer for payment
purposes each month.
Please note the following:
At the end of February every year, the employer must give each employee an IRP5 form,
which says how much tax that employee has paid that year. The employee must keep
the form in a safe place. The employee will receive a tax return from the South African
Revenue Services that will indicate if the employee must pay additional taxes or will
receive money back.
4.7.5 Provisional tax

If you own the business, the Income Tax Act says that you must register yourself as a
provisional taxpayer. It does not matter whether you are a sole trader, a partner, a
member of a CC or a director of a Company – it works the same for everybody.
Sole traders and partnerships need only register in the name of the sole trader or of the
partners, because the law does not make a distinction between the debts and assets of
the people who own the business and the debts and assets of the business. Close
corporations (CC) and companies must be registered in the name of the CC or company.
(The members of a CC and the shareholders and the directors of a company still have
to pay their own personal tax, so they would also be individually registered taxpayers.)
Persons and CCs or companies who register like this are called provisional tax payers.
➢ If you are a sole trader or a partner in a partnership, this is all you have to do to
register.
➢ When a CC or a company is registered with the Registrar of Companies in Pretoria,

the Registrar informs the Receiver of Revenue in your area. The Receiver will send
the CC or company a form IB68 to fill in. The Receiver will tell the members or
directors what information the Receiver needs and what else the CC or company
93
must do. The CC or company will then be registered as a taxpayer itself, besides
its members or directors being registered as provisional taxpayers themselves.
Consider the following example: “A” and “C” own a business called Kiep-Kiep. Kiep-
Kiep is a partnership. When they register for income tax, they would each have to
register as taxpayers in their own names. If Kiep-Kiep were a CC, they would register
the business as a taxpayer, in the name of Kiep-Kiep CC.
Individuals who are provisional taxpayers (the sole trader, partners,

members and directors) must pay tax twice a year. At the end of February and again at
the end of August, the provisional taxpayer pays tax.
a) Business expenses
A sole trader or partner calculates the tax to pay by taking her or his income and
subtracting all the money spent on the business. Business expenses are things like:
➢ Money spent on buying whatever you need to run the business

➢ Rent for the place where you run the business
➢ Water and electricity
➢ Transport costs
➢ Salaries and wages for employees and casuals
➢ Money paid for compensation for occupational injuries and diseases
➢ Money you pay someone to help you with the books for the business
➢ Bank charges, if you have opened a bank account for the business.
CCs and companies pay tax on the income brought into the business, after the expenses
of running the business have been deducted. One of the expenses which a CC or
company can subtract is the salaries paid to members or directors.
Members of CCs and directors of companies cannot subtract the business’s expenses
from their own salaries. The CC or company will subtract these expenses when it pays
CC or company tax.
It is complicated to calculate tax. Refer your client to a tax consultant for assistance.
The local Receiver of Revenue will also help people to fill in their tax forms. It would
also be a good idea to ask the local Receiver of Revenue or the financial department of
a big company in the area to run a workshop for business owners on how to calculate
their tax. A CC or company should ask an accountant to help with its tax. Information
regarding tax guidelines and tables are available on the SARS website www.sars.gov.za.
Once you have paid your provisional tax, SARS checks it and decides whether you have
overpaid or underpaid. If you have overpaid, you will be paid back by cheque. If you
have underpaid, you will get an account which you must pay. It is a criminal offence
94
not to pay tax. If tax is paid late, SARS can fine the taxpayer, and add interest to the
outstanding amount.
Figure 2 is a schematic outlay of the South African income tax system.
INCOME TAX
Individual Business
Registered tax payer Registered tax payer
Tax is deducted from wages provisional tax payers must pay tax
on a monthly basis twice a year. If taxpayers have overpaid,
they receive money back. If underpaid,
they will pay in extra.
Figure 2
4.7.6 Value-Added Tax

VAT is paid by each producer or distributor (vendors) who handles the goods before they
reach the consumer or end user, who is usually a member of the public. It is called
value-added tax, because tax is paid at every stage where value is added to the product.
a) Who are vendors?
When a business is registered as a vendor, it means:
➢ The vendor must collect VAT from customers and pay this VAT to the Receiver.
➢ The vendor can claim back any VAT that is paid on anything bought for the
business.
➢ If the turnover (the total of all the sales, without subtracting the costs) of a
business is more than R1 Million per year, the business must be registered as a
vendor. When you start a business and you think the turnover will be more than R1
Million, you have to register as a vendor.
➢ If the turnover of the business is less than R1 Million per year, the owner can
choose to register or not. It is a lot of work to pay VAT to the Receiver regularly
and to keep all the records the Receiver wants a vendor to have. If you don’t have
95
to register, it is a good idea to register only if the business buys lots of things from
suppliers and can claim back more VAT than what the business collects from
customers.
➢ If the business is a sole trader or a partnership, the owners must register in their
own names.
➢ If the business is a CC or a company, the owners must register in the name of the
business.
➢ The owner of the business must get a form VAT101 from the Receiver of Revenue.
You must fill in the form and send or deliver it to the Receiver of Revenue. The
Receiver will send the owner of the business a registration number.
➢ The Receiver of Revenue will give the business a registration number, which is
called a VAT invoice number. This number allows the person or business to charge
15% VAT on goods or services the business sells.
➢ Example: Nomawhethu types letters for other people. She is registered as a
vendor. She charges R20 to type one page. She must charge 15% VAT on top of
that. 15% of R20 is R3. So she charges R20 + R3= R23 altogether.
➢ Vendors must give their customers a VAT invoice, to charge them for the goods or
services. The invoice must have their VAT registration number on it. It must show
the amount of VAT paid by the customer separately from the price of the goods
or services.
b) Records for VAT purposes
Businesses registered for VAT must keep records, which show how much VAT they have
collected. For example, the following records must be kept:
➢ Invoices from your business to customers

➢ Invoices from your suppliers to you
➢ A list of debtors (that owe the business money) and creditors (that the business
owes money to)
➢ Bank statements, deposit slips, copies of cheques
➢ Books of account, where the owner of the business writes down how much money
has come into the business every month, how much money has been spent and on
what
➢ It is a good idea to ask an accountant to help set up books or to go on a short
course which teaches people how to keep books.
➢ Records must be kept for five years.
➢ The owner of the business must also have a bank account.
c) How is VAT paid over to the Receiver of Revenue?
The owner of the business has to pay the VAT over to the Receiver of
Revenue every two months. The Receiver will tell you how your two-month cycle will
work. You will be put into category A or category B. Category A vendors have to pay
like this:
96
➢ VAT collected from customers from 1 December to 31 January must be paid to the
Receiver by 25 February.
➢ VAT collected from 1 February to 31 March must be paid to the Receiver by 25
April
➢ VAT collected from 1 April to 31 May must be paid to the Receiver by 25 June and
so on.
Category B vendors have to pay like this:
➢ VAT collected from 1 January to 28 February must be paid to the Receiver by 25

March
➢ VAT collected from 1 March to 30 April must be paid to the Receiver by 25 May
➢ VAT collected from 1 May to 30 June must be paid to the Receiver by 25 July and
so on.
The owner of the business must calculate how much VAT is owed to the Receiver. Send
the Receiver a cheque with a form called a return. The return is form VAT201. If your
returns often get to the Receiver late, the Receiver can tell you to pay in the VAT every
month instead of every two months.
Businesses have to pay VAT on goods or services if they have invoiced customers. This
is called paying VAT on an invoice basis. It means that if the owner of the business
invoices customers, the owner has to pay over the VAT to the Receiver even if the
customer has not yet paid. This could cause cash flow problems for the business.
The owner of the business can do three things:
➢ Apply to the Receiver in writing to pay VAT on a payments basis. This means that
you only pay VAT to the Receiver when your customers have paid.
➢ Ask customers to pay their account immediately when they buy the goods or when
they receive the service.
➢ Charge customers interest if they do not pay your invoices within 30 days.
d) Input credit
The vendor can claim back any VAT that is paid on anything bought for the business.
The VAT that the vendor can claim back is called an input credit.
You can only claim input credits for the amount of VAT shown on VAT invoices that you
have paid. Remember to file invoices to prove what you have spent money on. For
example, you must keep salary slips, invoices from suppliers, slips to show how much
petrol you have used if you use a car for business reasons and so on.
Consider the following example:
John is the only member of a CC called Better Copy. Better Copy is a printing and
photocopy business. Better Copy is registered as a vendor. Better Copy must charge
15% VAT on all copying and printing that John and his employees do for customers.
John must give a Better Copy VAT invoice to every customer.
97
Mary wants 20 copies made of a knitting pattern. Better Copy charges R5,00 to do this.
John must add 15% VAT, which would be 75c. Mary must pay R5,75. John will send the
75c to the Receiver of Revenue, with all the other VAT paid by other customers over 2
months.
Better Copy bought a photocopy machine from IBM for R10 000. He paid R1 400 VAT on
the machine. He therefore paid R11 400. IBM gave Better Copy an invoice with IBM’s
VAT registration number on it. Better Copy can claim the R1 400 from the Receiver
because Better Copy is registered as a vendor. This R1 400 is called an input credit.
At the end of January, John adds up all the VAT that he has collected from his
customers. The total is R5 000, which he owes to the Receiver. He has an input credit
of R1 400, which is VAT he can claim back from the Receiver. John subtracts the R1 400
input credit from the R5 000 collected from customers. John must pay the Receiver R3
600.
4.8 Licences
If a business has anything to do with:
➢ making or selling food which can go bad

➢ health or entertainment activities, such as a business involving sauna, massage,
snooker, billiards, slot machines, a night club, disco or showing films
➢ selling alcohol
then the business must have a licence.
Example: Lotando has a spaza shop, which sells tea, washing powder, coke and so on –
only things that cannot perish. He does not need a licence. Patrick sells fruit and
vegetables. Joyce has a stand next to the road where she makes hotdogs and fishcakes.
The things Patrick and Joyce sell can perish, and so they need a licence.
But no licence is necessary if:
➢ The person makes and sells the food from his or her home
➢ The trader has a hawker’s licence.
To sell alcohol, you must apply to the Liquor Board for a liquor licence.
The procedure is complicated and it is best to get a lawyer to help you. For the other
types of business licences, you must contact the local council, which will give you an
application form. The owner of the business must fill in the form and give it to the local
council, with a copy of your ID and an application fee. Different government
98
departments will contact the owner to make an appointment to visit the business. These
inspectors will visit the business:
➢ Town planner, to see if the business is in an area that is zoned for business
purposes
➢ Health inspector, to see that the business follows all the health rules
➢ Inspector from the fire department, to see that the business is not a fire hazard
➢ Mechanical engineer.
The inspectors must visit the business within 30 days after the owner has handed
in the form. Your local council can give you guidelines for the things that the
inspectors look at. The inspectors will visit the business and tell the council what
they have found. If the inspectors want the owner to make some changes to the
business premises, the owner must apply to the local council for another 14 days.
If the owner does not apply for another 14 days and the work on the premises is
not finished within 30 days after handing in the form, the owner will have to apply
again and the inspectors will have to come again.
The local council will give the person the licence allowing him or her to do business.
The council can issue the licence with specific conditions. Example: Nolita applied
for a licence to sell fruit and vegetables as a hawker. The council gave her the
licence, but on condition that she trade only between 8 a.m. and 6 p.m. If Nolita
sells fruit and vegetables before 8 a.m. or after 6 p.m., the council can take away
her licence.
The council will not give a licence if:
➢ The place where the owner does business is unsafe or unhygienic

➢ The person is not considered to be a suitable person to open a business, because
he or she has a criminal conviction, or has a reputation for cheating people in the
community.
Traders do not have to apply for a new licence every year. They do have to apply for a
new licence:
➢ If they move their business to other premises

➢ If they sell the business, the new owner will have to apply for a licence
It is a criminal offence to operate without a licence when the business has

anything to do with:
➢ Making or selling food which can go off

99
➢ Certain types of health or entertainment activities
The owner could be fined R1 000 or be given a prison sentence of up to three months.
It is also a criminal offence to sell alcohol without a liquor licence.
4.9 Regional service levies

The owner of the business must register the business with the Regional Services Council
(RSC) in the area where the business operates. In Cape Town it is called the Cape
Metropolitan Council and in KwaZulu-Natal it is called Joint Services Boards. Every
month the business has to pay money, called a levy, to the RSC. The RSC will tell the
owner of the business how much to pay. The RSC works out the amount by looking at:
➢ The turnover of the business (turnover means the amount of money that comes
into the business every month from the things or services the business sells.)
➢ The amount of money the business spends on wages of employees or casual
workers and on the salaries taken out of the business by the proprietor, the
partners, the members or the directors. The RSC calculates the amount based on
0.2% of the business’s turnover and 0.25% of the wages or salaries. The RSC uses
this money to pay for buses and trains and to build infrastructure such as clinics,
taxi stands or a community centre for the community.
The owner of the business must get an RSC1 form from the nearest RSC office. The
owner must fill in the form and send it back to the RSC. Every month the owner of the
business must:
➢ Fill in a form, called a return

➢ Send a cheque with the return to the RSC
The return and the cheque must reach the RSC 20 days after the end of the month. For
example, January’s money must reach the RSC by 20 February. If the levy is less than
R50 per month, the owner of the business can ask the RSC to pay once a year. The
owner of the business will have to save the money to pay at the end of the year. This
will save time and stamps every month.
The RSCs have inspectors who check that businesses are registered. If the
owner of the business refuses to pay levies or deducts money from employees’ wages
to pay the levy, the owner of the business can be fined up to R5 000 or be imprisoned
for up to one year.
100
Please answer the following self-evaluation questions:
1. Define what a business plan is.

2. Why is it important to have a business plan?
3. What must an efficient business plan provide for?
4. Briefly discuss each of the elements of a business plan.
5. Write down the names of the different statutes that regulate the legal position
of the following businesses:
a) Close Corporations
b) Companies
6. Give a brief discussion of the nature of each of the following:
a) Partnership
b) Sole trader
c) Close Corporation
d) Company
7. How many people can be involved in a partnership?
8. What are the people who are involved in a close corporation called?
9. Discuss the nature of the liability of a sole trader and that of a close corporation.
10. Who owns the business assets of a close corporation?
11. What are the accounting requirements for a sole trader and a close corporation?
12. Discuss the advantages and disadvantages of:
a) a company compared to a close corporation
b) a close corporation compared to a partnership
c) a close corporation compared to a sole trader.
13. Why is it necessary for a business to have a budget?
14. Define what a budget is.
15. What period of time should a budget cover?
16. How will you calculate expected expenses and income?
17. How will you monitor your budget?
18. What is an audited statement?
19. What are bank charges and service fees?
20. What is a bank statement?
21. Discuss the main issues regarding the “crossing of cheques”.
22. What is a “bounced” cheque?
23. What type of records must be kept in an office environment regarding the
handling of money?
24. What will the daily records consist of?
25. Explain the balancing procedure step by step.
26. Who must pay income tax?
27. Who must register as taxpayers?
28. How must a person register as a taxpayer?
29. Discuss the duties of an employer regarding the registering of taxpayers and the
collecting of taxes.
30. Who can register as provisional taxpayers?
101
31. What should be taken into account when a sole proprietor or partner calculates
the taxes that they must pay?
32. Describe what Value-Added Tax is.
33. What is a VAT Vendor?
34. How does a person register as a VAT Vendor?
35. How is the amount of VAT that must be paid calculated?
36. What records must be kept to show how much VAT has been collected by the
Vendor?
37. Explain the ‘two-month’ pay-over cycle.
38. What is an input credit?
39. Explain to a client the position regarding the payment of regional service levies.
40. Explain to a client what will happen if he or she has to obtain a business licence.
41. Why is it necessary to advertise a business?
42. What kind of information must be contained in a marketing strategy?
43. Write down 5 examples of media that you can use to promote your office.
44. What can be achieved when using media?
45. What must you take into account before compiling a newsletter?
Assessment criteria
If you have completed the activities (e.g. reading, answering questions,

completed charts, learned schematic outlines, made summaries, etc) you will be in a
position to check that you have achieved the outcomes if:
➢ the role and structure of the paralegal movement in South Africa can be explained
clearly
➢ your own definition of the role of a paralegal has been provided and an
explanation of your emphasis of certain aspects has been included
➢ knowledge and insight of legal ethics have been demonstrated by you in the
activities and assignments
➢ professional responsibility for the client’s legal matter has been taken by acting
according to a relevant legal ethical code
➢ a professional legal attitude is evident in your dealings with clients
➢ you apply your written and oral communication skills in explaining different
options
➢ you organise your role as paralegal professionally by applying administrative skills,
your knowledge of money matters, as well as your organisational and managerial
competencies effectively
➢ you communicate, written and orally, with the different role players in the legal
process by applying communication skills effectively and showing insight in the
choice of communication skills and actions
➢ you are a responsible local and national citizen when applying your communication
skills effectively
➢ you can identify, analyse, advise and resolve legal and socio-economic problems
in your community
102
➢ you use analytical, critical and problem-solving methodology underlying the
rendering of legal services to explain different options to members of your
community
➢ you participate in the paralegal network nationally and globally, ensuring the
community’s access to justice
➢ you explore employment and career opportunities by using your communications
skills when doing field work, assignments and interviews during your interactions
with the relevant role-players in the legal process
➢ you developed sufficient entrepreneurial skills, including applying the principles
of administration and money matters, rendering you employable in a paralegal
office
➢ use your knowledge of different types of businesses to enhance your
entrepreneurial skills
Conclusion
You have now completed the last module. Congratulations! By now you should have a
basic knowledge of South African law. You should also be able to be of service to your
community.
Do not neglect to revise sections you had difficulty with.
We hope you have enjoyed your course and that you will use what you have learned in
the service of your fellow man.
103
Bibliography
2009 Obiter 702

ALS of SA / Centre for Socio-legal Studies (University of Natal) Street Law, Practical Law for
South African students 1: Introduction to South African law and the legal system Juta,
Durban (1987).
Benade, Henning, Du Plessis, Delport, De Koker and Pretorius Entrepreneurial law (2008)
Botha “The Role and Duties of Directors in the Promotion of Corporate Governance: A South
African Perspective” 2009 Obiter
Companies Act 71 of 2008
Davis, and Geach, A. Loubser, Z. Buba, D. Burdette, D. Butler, L. Coetzee, T.
MongaloCompanies and other business structures in South Africa (2019).
Delport The Ne Companies Manual (2011).
De Rebus, April 1979, 223.
De Rebus, August 1999, 10 (New Minister foresees single practising profession).
De Rebus, July 1986, 319.
Discussion paper on transformation of the legal profession Policy Unit of Justice and
Constitutional Development Sept/Oct 1999
Esser and Du Plessis “The Stakeholder Debate and Directors’ Fiduciary Duties” 2007 SA Merc
LJ.
Lawyers for Human Rights Presentation Outline 4 November 1996
Legal Education Action Program (LEAP) Manual Small business law 1999.
McClennan “Directors’ Fiduciary Duties and the 2008 Companies Bill” 2009 TSAR 186
Meintjies-Van der Walt, L and others Introduction to South African Law, Fresh Perspective
Pearson Education and Prentice Hall, Cape Town 2008.
Papers of NPI National Consultative Conference Johannesburg, 18-19 June 1999.
PLT Attorney’s Ethics 1997.
Practical Legal Training, Business Management 1999.
Reader’s Digest Family Guide to the Law in South Africa 1982.
Sherr A, Client interviewing for lawyers Sweet & Maxwell 1986.
The Department of Trade and Industry’s policy paper (South African Company Law for the
21st Century – Guidelines for Corporate Law Reform (GG 26493 of 2004-06-23)
The third report on Corporate Governance in South Africa of 2009.
Tucker DE, Creative writing, Essays and letters, Grades 8-12 Guidelines (Pty) Ltd 1993.
Van der Walt JC, “Professionele opleiding en toegang tot die professie” TSAR 1988 1 38 .
Mongalo Corporate law and corporate governance (2003) 158.
104

Business Law 1 2023 Study Guide

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Law 1 2023 Study Guide

Uploaded by

Copyright:

Available Formats

DIPLOMA IN LAW: PARALEGAL STUDIES

BUSINESS LAW 1 AND COMMUNICATION SKILLS

Revised by Mr Giles Millard

Copyright 2021 © Faculty of Law: Paralegal Studies

All rights reserved

Business Law 1 and Communication Skills

Learning outcomes: A learning outcome has three components: what you

Self-evaluation: Once you have completed all the activities in a module,

Integration: Remember the instruction above not to throw away study

Prescribed and recommended reading

1. The paralegal movement in South Africa ...................

2. Written and oral communication ...................

3. Administrative skills ...................

4. Strategic planning ...................

Upon completion of this unit, you should understand what a paralegal is

➢ explain what a paralegal is and define the role of a paralegal

➢ sub-unit 1 introduces you to the concept of a paralegal

The NCBPA pursued the government to provide support for recognition of

The objectives of the NPI are:

The activities are focused on:

➢ Participating formally in all meetings of the Sector Education and Training

The NPI strives to achieve the following results:

➢ Permanent presence of the sector in all processes of standard setting.

Its objectives are:

➢ To provide relevant skills development interventions to the paralegal sector in

1.2 What is a paralegal?

Part III – Registration and enrolment of para-legal practitioners

12. Minimum qualifications and training requirements applicable to para-legal

13. Application for registration and enrolment as a para-legal practitioner

A paralegal is a qualified person, who:

➢ have left out certain aspects, and list them

1.3 The paralegal in contemporary South Africa

The former Minister of Justice and Constitutional Development, Dr Penuell

In the Discussion Paper on the Transformation of the Legal Profession, it is

➢ paralegal practitioners should be recognised and regulated by statute, as they

➢ prescribe qualifications for admission to legal and paralegal practice, subject to

Students registered for paralegal courses should also be required to do a minimum

1.4 A code of conduct: The paralegal and ethics

All legal practitioners shall

Chapter 4 of the Legal Practice Bill, 2002, provides the following:

MAINTENANCE AND ENFORCEMENT OF GOOD AND ETHICAL CONDUCT

42. Binding nature of the Code of Ethics

43. Non-compliance with Code of Ethics

The primary purpose of the Code is to promote exemplary conduct. Notwithstanding

A paralegal shall at all times:

➢ maintain the honour and dignity of the NPI

➢ allegiance to the state (Republic of South Africa)

➢ integrity – incorruptible honesty

1.4.2 What are ethics?

1.4.3 Aim of the code

The legal profession’s main aim is to:

➢ give legal advice and

1.4.4 The duties of the paralegal

a) The paralegal’s duty to the client

➢ acceptance of the brief / instruction

You should complete your instruction - you cannot stop halfway.

You will often be required to give legal advice.

➢ your own illness

b) The paralegal’s duty to the profession

➢ render legal services competently

d) The opponent’s client

When dealing with civil matters the following apply:

When considering consultation in criminal matters the following will apply:

TEL(HOME): _ (WORK) _