Comtel Terms & Conditions: 4 Critical Legal Risks Exposed and How to Fix Them | Erayaha

## When Ambiguity Becomes Expensive: A Deep Dive into Comtel’s Terms & Conditions

When we examined Comtel’s Terms & Conditions, our analysis revealed several legal and logical errors that could expose the company to significant financial and regulatory risks. For example, a single ambiguous liability clause could result in litigation costs exceeding R2 million, while non-compliance with South Africa’s POPIA or the GDPR could trigger fines up to €20 million or 4% of annual turnover. Below, we highlight four of the most impactful issues, their business implications, and actionable redlines to strengthen enforceability and compliance.

1. Overbroad Limitation of Liability Clause Comtel’s limitation of liability clause attempts to exclude all indirect or consequential losses, but fails to specify exceptions for gross negligence, willful misconduct, or statutory liabilities. This overreach not only risks unenforceability under South African law, but could also expose Comtel to uncapped damages in court. If challenged, the company could face multi-million rand judgments and reputational harm.

Legal Analysis

critical Risk

Removed

Added

11.11. Limitation of Liability Clients use Comtel services at their own risk and indemnify Comtel, its employees, agents, and IT partners against any indirect or consequential losses arising from service use, except where such losses arise from Comtel’s gross negligence, willful misconduct, or liability that cannot be excluded by law.

Legal Explanation

The original clause is overly broad and likely unenforceable under South African law, which prohibits exclusion of liability for gross negligence or statutory obligations. The revision clarifies exceptions, making the clause more legally robust and reducing the risk of uncapped damages.

2. Insufficient Data Protection Commitments While Comtel references POPIA and international best practices, the T&Cs lack specific obligations regarding data breach notification timelines and client rights. This omission creates compliance gaps with POPIA and GDPR, risking regulatory fines and class-action lawsuits in the event of a breach. The financial impact could reach €10 million or more, depending on the nature and scale of data involved.

Legal Analysis

high Risk

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11.7. Client Data Protection Comtel adheres to international best practices and the POPIA Act for data protection and privacy, as detailed in our Privacy Statement. In the event of a data breach, Comtel will notify affected clients within 72 hours, as required by POPIA and GDPR, and provide information on remedial actions and client rights. Data obtained via FICA is shared with legal entities in compliance with ICASA, ISPA, WAPA, and South African law.

Legal Explanation

The original clause lacks specific obligations for breach notification and client rights, which are required under POPIA and GDPR. The revision adds a clear timeline and process, reducing regulatory and litigation risk.

3. Ambiguity in Service Suspension and Termination The current suspension and termination provisions allow Comtel to suspend or terminate services for a broad set of reasons, including “abusive behaviour” and “misuse,” without defining these terms or providing a clear process for dispute resolution. This ambiguity increases the risk of wrongful termination claims, which could result in damages, regulatory scrutiny, and loss of customer trust.

Legal Analysis

high Risk

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11.9. Service Suspension and Reinstatement Services may be automatically suspended for late or non-payment, abusive behaviour, misuse, illegal activities, or breach of these terms, provided that Comtel gives written notice specifying the grounds for suspension and allows the client a reasonable opportunity to remedy the breach, except in cases of illegal activity. Reinstatement requires payment of outstanding amounts and applicable administration fees.

Legal Explanation

The original clause is vague and does not define key terms or provide a fair process for clients to dispute or remedy alleged breaches. The revision introduces notice and cure provisions, reducing the risk of wrongful termination claims and regulatory scrutiny.

4. Incomplete Force Majeure Clause Comtel’s force majeure clause does not specify the process for notification, duration of suspension, or termination rights if the event persists. This lack of detail can lead to disputes over contract performance, potentially resulting in litigation costs and business interruption losses exceeding R1 million for prolonged outages.

Legal Analysis

medium Risk

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12.1. Force Majeure Neither party shall be liable for any failure or delay in performance under these Terms and Conditions resulting from events beyond their reasonable control, including but not limited to natural disasters, war, terrorism, labour disputes, or disruptions in public utilities. In such cases, theThe affected party shall notify the other as soon as practicable, and performance will be suspended for the durationparty in writing within 5 business days of becoming aware of the event. If the force majeure event continues for more than 30 days, either party may terminate the agreement without penalty by providing written notice.

Legal Explanation

The original clause lacks detail on notification, duration, and termination rights. The revision adds clear procedures, reducing uncertainty and potential disputes over prolonged force majeure events.

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Conclusion: Proactive Redlining for Legal Resilience Our analysis shows that even well-intentioned terms can create significant financial and regulatory exposure if not precisely drafted. Addressing these four issues with targeted redlines will help Comtel mitigate litigation risks, regulatory fines, and reputational harm.

Are your contracts exposing your business to preventable losses? How often do you review your terms for compliance gaps? What would a single legal dispute cost your company?

This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai’s terms of service for liability limitations.