20/05/2026
Big Judgment: The CPA is not a shortcut out of a genuine commercial contract
This month, in Dr Darren Levin Inc. and Another v Promenade Centre (Pty) Ltd [2026] ZASCA 70, the Supreme Court of Appeal considered whether a commercial lease could be declared void because it had been structured to fall outside the application of the Consumer Protection Act.
The landlord had insisted on contracting with an incorporated entity, rather than the individual doctor, to avoid the CPA. The tenant later argued that the lease was void and unenforceable.
The SCA disagreed.
The Court confirmed that parties may, in appropriate circumstances, structure their commercial affairs so that legislation such as the CPA does not apply, provided the arrangement is genuine and not a sham.
Importantly, the judgment confirms that the CPA remains an important consumer-protection statute, but it is not a mechanism to undo genuine commercial arrangements simply because one party structured the transaction to fall outside its scope.
The practical lesson is simple: the structure of a transaction matters.
Once a contract is signed, it may be difficult and expensive to undo.
Make sure you get the right legal advice even before you sign a contract.
Coetzee, Le Roux & du Plessis Inc.