CLA1503 Assignment 2 Semester 1 2021 Questions and Answers

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Commercial Law 1C CLA1503 Department of Mercantile Law Assignment 02 for Semester 01 (compulsory) Unique Number 626985 Due: 16 April 2021 4 RESOURCES 4.1 Prescribed book(s) The prescribed text... book for CLA1503 is General Principles of Commercial Law 9th ed (2019) Juta, co-authored by H Schulze, T Manamela, P Stoop, E Manamela, E Hurter, B Masuku and C Stoop. You should purchase this prescribed textbook. The prescribed books can be obtained from the University's official booksellers. If you have difficulty finding the book at these booksellers, please contact the Prescribed Books Section at 012 429 4152 or email [email protected]. The prescribed textbook is also an e-book and can be purchased at www.juta.co.za. Only the following chapters in the prescribed textbook have to be studied for this module: Chapter 1: The South African Legal System Chapter 2: Introduction to the Science of Law Chapter 3: Law of Contract: Introduction Chapter 4: Consensus Chapter 5: Capacity to Perform Juristic Acts Chapter 6: The Agreement must be Possible Chapter 7: Formalities Chapter 8: Terms of the Contract Chapter 10: Breach of Contract Chapter 11: Remedies for Breach of Contract Chapter 12: Transfer and Termination of Personal Rights (Please Note: Only paragraphs 12.1 (Introduction), 12.2 (Cession) and 12.2.1 (The consequences of cession) are prescribed) Chapter 13: The Contract of Sale Chapter 14: The Contract of Lease Chapter 15: The Contract of Insurance Chapter 20: The Law of Agency Chapter 21: Forms of Business Enterprise (Please Note: Paragraph 21.4 (21.4.1-21.4.8) (Company Law) is not prescribed) Chapter 23: Security Chapter 30: Consumer Protection Downloaded by: Rufaro | [email protected] Distribution of this document is illegal Stuvia.com - The Marketplace to Buy and Sell your Study Material 4.2 Recommended book(s) There are no recommended books for CLA1503. QUESTION 1 Which ONE of the following sources will a South African lawyer consult on Roman law? 1. the Constitution of the Republic of South Africa, 1996 2. Customary Law 3. the Corpus Iuris Civilis 4. South African Statute Law (2) Answer: Refer to page 2 of the prescribed textbook: 1.1.1 Roman law Roman law traditionally spans the period from 753 BC to AD 568. At the beginning of this period, Rome was a small, relatively primitive state with most of its population living on farms around the city. Its economy was based mainly on agriculture, with no trade to speak of. The nucleus of the community was the family with the oldest male ascendant at its head. Not only was he the sole owner of all the family property, whether acquired by himself or his dependants, but he was also the holder of all power, including the power of life and death, over the members of his family and his slaves. The law was correspondingly primitive. Rome, however, developed rapidly until it stood at the head of a vast empire which extended over virtually the entire Western Europe and large portions of Africa and Asia. Obviously, the law had to adapt to and make provision for these changed circumstances, and, in consequence, a highly sophisticated legal system, capable of dealing with the exigencies of increasing wealth, expanding trade and an influx of foreigners, evolved. From AD 291 attempts were made to codify Roman law and these attempts culminated in a codification known as the Corpus Iuris Civilis, which appeared during the reign of Emperor Justinian in the sixth century. Today, this work is still the primary authoritative source on which South African courts draw when reverting to Roman law to solve a legal problem. QUESTION 2 Jaco is a famous inventor of new, environmentally friendly trucks. He stands in his ultramodern workshop admiring the revolutionary new electrically powered truck that he designed for the company, Big Trucks, which still owes him R5 000 000. This sentence contains four legal objects, one from each of the four categories of Jaco's subjective rights. The R5 000 000 owed to Jaco is an example of … Downloaded by: Rufaro | [email protected] Distribution of this document is illegal Stuvia.com - The Marketplace to Buy and Sell your Study Material 1. a real right. 2. a personality right. 3. a personal right. 4. an immaterial property right. (2) Answer: 3 is CORRECT. Personal rights are rights in terms of which some type of conduct, referred to as performance, can be demanded from a person. Personal rights may come about through a contract, a delict or unjustified enrichment. Performance can entail giving something, doing something or refraining from doing something. Jaco has a personal right to the R5 000 000 Big Trucks still owes him for the invention they bought from him, probably in terms of a contract of sale. Refer to page 23 of the prescribed textbook: Personal rights (which should not be confused with personality rights) are rights in terms of which some or other conduct, referred to as ‘performance’, may be demanded from a person. Performance can consist in giving something, doing something, or refraining from doing something. QUESTION 3 In which ONE of the following situations was a VALID contract concluded? 1. Sally engages a professional seafood caterer to provide seafood for her birthday party, to which twenty guests have been invited. All the guests confirm that they will attend Sally's birthday party. The day before the party, ten of the guests inform Sally that they will not be able to attend the party because they prefer to attend a street party at the same time and date in Sandton. 2. Nicolas makes a new year's resolution and undertakes that he will save R500 each month by paying R500 into his savings account on the first day of each month. 3. Peter purchases a new pair of running shoes for R600 on the official website of Nike. 4. Reeze undertakes to sell the moon and one star to Shana for R500. (2) Answer: All five requirements for a valid contract have been satisfied. Online contracting can be done. The Electronic Communications and Transactions Act 25 of 2002 regulates electronic contracts. QUESTION 4 Peter studies for a B.Com-degree at Unisa. While writing an examination he sees a beautiful girl, Maureen, at the examination hall and falls head over heels in love with her. He rushes to her, introduces himself and invites her to go to the movies with him. They agree to meet Downloaded by: Rufaro | [email protected] Distribution of this document is illegal Stuvia.com - The Marketplace to Buy and Sell your Study Material the next Friday at 6 o'clock in front of Sterkinekor. Peter arrives at Sterkinekor at the agreed time, but Maureen is not there. After he has waited for more than two hours, he decides to go home and consults his Commercial Law textbook to see whether he can take legal action against Maureen for not honouring their appointment. Only later Peter learns that Maureen's car broke down on her way to Sterkinekor. Which ONE of the options provided below will complete the following sentence CORRECTLY? Peter's appointment with Maureen was NOT a contract because ... 1. their appointment was not in writing and signed by them. 2. they did not have the intention to create legally enforceable obligations. 3. it was not physically possible for Maureen to honour their appointment. 4. it was not juridically possible for Maureen to honour their appointment. (2) Answer: 2 is CORRECT. A mere social appointment, for instance to go to the movies, is not a contract since the parties do not have the intention to create legally enforceable obligations. A social appointment has no legal consequences and at most creates a moral duty. QUESTION 5 Morake owes Ismael an amount of R70 000. Morake and Ismael enter into an agreement in terms of which Ismael will cancel 30% of the debt if Morake agrees to sponsor Ismael's visit to the "Blue House" brothel. Which ONE of the following statements is CORRECT? 1. Morake and Ismael's contract is lawful because they have reached consensus. 2. Morake and Ismael's contract is lawful because they both have capacity to enter into juristic acts. 3. Morake and Ismael's contract is unlawful because their agreement is partially enforceable. 4. Morake and Ismael’s contract is unlawful because their agreement is contrary to good morals. (2) Answer: Morake and Ismael's agreement is contrary to good morals. An act is contrary to good morals if it is contrary to the community’s perception of what is proper and decent and in accordance with the conscience of the community. Contracts which are aimed at promoting sexual misconduct are contrary to the South African community’s perceptions of what is proper and decent. Downloaded by: Rufaro | [email protected] Distribution of this document is illegal Stuvia.com - The Marketplace to Buy and Sell your Study Material QUESTION 6 Chris and Paul enter into a contract in terms of which Paul has to deliver a dozen bottles of export wine to Chris. Chris has already paid the purchase price. Paul now indicates that he does not intend to perform in terms of the contract. Which ONE of the following types of breach of contract has Paul committed? 1. Repudiation 2. Mora debitoris 3. Positive malperformance 4. Prevention of performance (2) [Show More]

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