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SA Is Company Bound to Uphold Policy Under Contract Law?

Discussion in 'Employment Law Forum' started by werd, 3 June 2016.

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  1. werd

    werd Member

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    If a company 'undertakes' to do something (as written in a signed contract), can that company change its stance on this?

    ie: the company 'undertakes' to apply a current policy for the life of an agreement - and if that policy is changed during the life of the agreement for whatever reason, can that company cite for reason 'X' , we can no longer apply this policy for this agreement and will have to change it to the new policy? Or are they bonded to the existing policy due to the agreement still being active under contract law?
     
  2. Victoria S

    Victoria S Well-Known Member

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    An undertaking made by a company in a written and signed agreement would amount to a contractual promise, which would result in a breach of the agreement if it were not kept.
     
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  3. Rod

    Rod Well-Known Member

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    Need to be careful when contracts refer to policy documents. Some contracts refer to policy documents and the company reserves the right to change policy documents at any time for any reason.

    Issues occur when policy documents begin to cut across provisions in the contract. The terms in the contract generally take precedence over policy documents.
     
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  4. werd

    werd Member

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    I guess that was the question - is an undertaking in a signed agreement seen as binding?

    Appreciate the replies
     
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