In terms of the new Consumer Protection 68 of 2008 (the Act), an agreement that is stipulated to endure for a particular amount of time is called a ‘fixed term agreement’, and the agreement therefore is regulated by the provisions of the Act.
Are there examples of a fixed term agreement?
The easiest example of a fixed term agreement is a cellphone contract. Most cellphone contracts are taken out for a period of 2 years (24 months), and as such they are fixed term agreements.
What does this mean for a consumer?
The Act accordingly provides consumers with the right to choose, which right includes (where the consumer is an individual as opposed to a company), the choice to terminate a fixed term agreement.
[Source] South African Legal Advice