View source for Contracts (Amendment) Act, 2023 (Act 1114)

==ARRANGEMENT OF SECTION==

:[[#Section 17 of Act 25 Amended]]

==PURPOSE==
AN ACT to amend the Contracts Act, 1960 (Act 25) to provide for the type of interest to be paid on a sum of money due to a party to a contract or transaction entered into on behalf of the Republic.

==DATE OF ASSENT==
1st March, 2024.

==ACT==
====Section 17 of Act 25 Amended====
The Contracts Act, 1960 (Act 25) is amended by the substitution for section 17, of
'''"Contracts of the Republic

17. (1) This Act applies to a contract or a transaction entered into on behalf of the Republic as it applies to any other contract or transaction.

:(2) The following persons are authorised to enter into a contract or transaction on behalf of the Republic:
::(a) a Minister responsible for a subject or department on a matter falling within the portfolio of the Minister;
::(b) a person authorised by the Minister; or
::(c) any other person authorised by law.

:(3) Where a person specified under subsection (2) enters into a contract or transaction on behalf of the Republic, the payment of interest on any sum of money due under the contract or transaction shall be calculated at simple interest.

:(4) A person shall not enter into a contract or a transaction on behalf of the Republic in which the payment of interest on a sum of money due to a party to the contract or transaction is calculated at compound interest.

:(5) A contract entered into contrary to subsection (4) is null and void.

:(6) A person who wilfully enters into a contract contrary to this section commits an offence and is liable on summary conviction to a fine of not less than five thousand penalty units and not more than ten thousand penalty units or to a term of imprisonment of not less than ten years and not more than fifteen years or to both."