In the matter of SA Sentrale Ko-op Graanmaatskappy Bpk v Shifren and Others 1964 (4) SA 760, the standard non-variation clause, known as "the Shifren clause", was recognised by the Supreme Court of Appeal. The Shifren principle relates to contractual formalities, specifically those found in a non-variation (or an entrenchment) clause. Such a clause states that any amendment to a contract will only be effective if the amendment is reduced to writing and signed by all the contracting parties. The Shifren principal notes that such a formality (being that an amendment or variation must be in writing and signed by the parties) must be entrenched in the agreement and the non-variation clause.
The Shifren clause binds parties to the provision that a written contract may only be amended if certain formalities are complied with. Commonly referred to as a "variation clause", amendments are only allowed if they are affected in writing and signed by all parties.
Therefore, the Shifren clause is nothing more than a non-variation clause, also sometimes referred to as a "variation clause", which regulates how and under which circumstances a written agreement may be varied between the parties to the agreement.
About the author
Johan van Stade joined the Gawie le Roux team in 2019. His passion for further education, training, and the law enables him to pass his expertise on to his students, especially those seeking deeper practical knowledge and understanding of the law. He is the presenter and co-author of the Attorneys' admission exam courses and co-presenter of the Course in notarial practice. Johan presents various paralegal courses, such as Civil litigation, among others. He is an admitted attorney, conveyancer, and notary.
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