Often employment contracts contain a clause to the effect that the agreement is the sole record of the terms existing between the parties and that any variation or amendment thereof will only be valid if reduced to writing and signed by both parties. This is commonly referred to as the Shifren principle that came about as a result of SA Sentrale Ko-op Graanmaatskappy Bpk v Shifren and Another 1964 (4) SA 760 (A).
Is this principle applicable to cancellation of agreements?
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- The supreme court of appeal, per Harms JA, in Telcordia Technologies Inc v Telkom SA Ltd 2007 (3) SA 266 (SCA), at para [12], provided the requisite answer as follows:
- ‘…the [Shifren] principle does not create an unreasonable straitjacket because the general principles of the law of contract still apply, and these may release a party from its workings …’ (see also Ocean Echo Properties 327 CC and Another v Old Mutual Life Assurance Company (South Africa) Limited 2018 (3) SA 405 (SCA) at para [13]. Cf Hlophe v TS Galaxy FC (C1083/2018) [2022] ZALCCT 21 (9 May 2022), at para [23])
