Law of Property (PVL3701) Exam, questions and answers Law of Property (University of South Africa) Critical Law Studies. All Answers Explained.

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QUESTION PACK Basic princples Sources of the law of things: A real right The function of the law of things A thing Real and personal rights under the following headings: 1. Object ... 2. Absoluteness 3. Preference 4. Publicity Property and things (5) QUESTION 1: X and Y own their farm, Waterford; X's parents-in-law (Q and R) are owners of their farm Pulang and S is the owner of Highlands. M has a right of habitation in respect of the homestead on Waterford. S has a contract with X and Y in terms of which he can graze 100 head of cattle on the farm. S also has the right to drive undisturbed over Q and R's farm. A mortgage bond is registered over Highlands in favour of the bank. Briefly mention the nature and extent of the limitations on the ownership of the following persons: (a) X and Y (b) Q and R (3) CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 3 Property Questions - 2019 (c) S QUESTION 2: Briefly discuss the difference between ownership and limited real rights. (6) QUESTION 3: How is the subtraction from the dominium (ownership) test formulated in Ex parte Geldenhuys (1926 OPD 155)? (7) Ownership Ownership Co-ownership Expropriation Accession Appropriation or occupation (occupatio) Building (inaedificatio): Restrictive conditions QUESTION 1: Distinguish between ownership and the entitlements of ownership QUESTION 2: Distinguish between original and derivative methods of acquisition of ownership (6) QUESTION 3: Name 4 persons in whose favour prescription is suspended (4) QUESTION 4: Name the requirements for “attornment”. (5) QUESTION 5: Name the two categories of limitations on ownership and give one example of each (4) These limitations on ownership can be categorised as follows: QUESTION 6: A mining company erected an electrical substation and steel towers on its farm to convey electricity to its mining operations. The installations and substation were erected in accordance with Eskom's specifications. Eskom supplied power to the mining company. Subsequently the mining company ceased operations and Eskom no longer supplied it with power. In 1981 Rollomatic purchased certain steel towers, which had previously been part of the electrical substation, from the mining company. In terms of the sales contract Rollomatic was responsible for the removal of the steel towers and their concrete foundations and for restoring the land to its original state. Delivery of the steel towers to Rollomatic would take place after the latter had CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 6 Property Questions - 2019 made the necessary arrangements with an official of the mining company, which still owned the farm. No such arrangements were ever made and Rollomatic left the steel towers on the farm. The managing director of Rollomatic had, in his personal capacity, hired the farm for grazing purposes, but the fenced-off area upon which the substation and steel towers stood was expressly excluded from the lease. Eskom later decided to put the substation into operation again and purchased a small portion of the farm upon which the substation and steel towers stood from the mining company. It took transfer of that portion of the farm in January 1986. Eskom again used the steel towers, which were still standing there, as an integral part of the new substation. When Rollomatic sent its employees in May 1987 to remove the steel towers, they could not do so because of the erection of the new substation. Rollomatic claims delivery of the substation with the rei vindicatio. What must he prove to succeed with this action and will he succeed? Substantiate your answer. (8) Legal question Ratio decidendi Application of finding to relevant facts QUESTION 7: X and Y are seriously affected by baboons that destroy their maize plants. X installs an apparatus to chase away the baboons on the boundary with his neighbour. The apparatus makes loud noises at regular intervals during the day and the night. The neighbour writes to X and Y to complain about the noise during the night, but X ignores the letter and refuses to speak to his neighbour on the telephone. X and his neighbour are not on speaking terms because his neighbour seriously insulted him a few years ago. The neighbour applies for an interdict ordering X and Y to stop the noise. X and Y rely on their ownership of the farm. They argue that they are entitled to do as they please on their property. Will this argument succeed? Substantiate your answer and refer to case law. (10) Limitations on ownership: NEIGBOUR LAW (NB): Purpose: NUISANCE: In the narrow sense: Gien v Gien QUESTION 8: X and Y own their farm, Waterford; X's parents-in-law (Q and R) are owners of their farm Pulang and S is the owner of Highlands. M has a right of habitation in respect of the homestead on Waterford. S has a contract with X and Y in terms of which he can graze 100 head of cattle on the farm. S also has the right to drive undisturbed over Q and R's farm. A mortgage bond is registered CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 8 Property Questions - 2019 over Highlands in favour of the bank. Briefly mention the nature and extent of the limitations on the ownership of the following persons: (a) X and Y (b) Q and R (3) (c) S (4) QUESTION 9: S and his friends go for a hunting weekend .S mortally wounds a kudu. The kudu manages to escape into dense bush. S gives up the search for the kudu when darkness falls. On his way home from a party, Z, one of the farm labourers, stumbles upon the wounded kudu. He fetches his friends and they slaughter the animal and take the meat to their respective homes. Z is accused of theft of the kudu. The state alleges that S was the owner of the kudu and that Z stole the kudu. To succeed the state will have to prove that S was the owner. Will the State succeed in proving this? Substantiate your answer with reference to case law. QUESTION 10: Q and R, who are S's grandparents, are lovers of game and they keep two impalas, a few kudus and a giraffe in a camp of approximately 250 to 300 hectares in extent. The camp is enclosed by a fence 1.68 m high. Q and R purchased the animals at an auction from a well-known game farmer who marks all his animals with the initials JR. Late one evening the game ranger leaves the gate open and the animals escape. S and his friends go hunting on S's farm the following evening. They shoot four of the kudus. S's grandparents, Q and R, are claiming the value of the animals from S and his friends because they argue that the game was their property. Will Q and R succeed? Substantiate your answer. (10) QUESTION 11: S plants potatoes on land he leases from Z. Before he can reap the crop, the term of his lease expires and Z does not renew the lease. The lease agreement does not refer to the ownership of the crop. Discuss the legal position of the parties involved. QUESTION 12: S, the lessee of a section of Waterford, decides to build a dairy and stables on this farm, which belongs to X, and Y. S buys all the equipment to build the dairy from the cooperative, C. The cooperative reserves ownership of the equipment until the final instalment has been paid. A team of experts who work for C install the dairy under the supervision of S. They build the stable with bricks on a concrete floor. They also install all the pipes and tanks for the proper functioning of the dairy. Two years after S has started the dairy and before the cooperative has been paid in full, S becomes insolvent and the trustee of his insolvent estate argues that all the structures and equipment are movable assets, which form part of the insolvent estate. X and Y claim that they became co-owners by means of accession, and the cooperative claims that it is the owner of the attachments. Advise (with reference to case law): 1. X and Y (10) 2. C, the cooperative (4) 3. The trustee of the insolvent estate (3) QUESTION 13: S bought harvesting machinery from Z. He borrowed money from X and Y to pay for the machinery. Z delivered the machinery to S, who used it on his farm. S then sold the machinery at the same price that he paid for it to his parents and leased it back from them. S becomes insolvent and X and Y claim the machinery from the insolvent estate with the rei vindicatio. They claim that they became owners in terms of constitutum possessorium. Will they succeed? Substantiate your answer with reference to case law. (10) QUESTION 14: S had an agreement with C, the cooperative, in terms of which he traded his old truck in as part payment for a harvester that he was buying from C. The truck was at the premises of a panel beater, who was repairing accident damage. S and C completed change of ownership documents for the truck and C informed the panel beater that it (C) was the new owner of the truck. The panel beater never declared himself willing to control the truck on behalf of the new owner. Z, a creditor of S's, obtained an execution order against S. When the sheriff tried to attach the truck while it was still with the panel beater, the latter told the sheriff that C had informed him that C was the new owner of the truck. Z disputes this. Will Z succeed with his application for an attachment order? Substantiate your answer with reference to case law. (10) QUESTION 15: The applicant Q, a car dealer from Pretoria, provided L, a second-hand car dealer doing business in Durban, with two motor cars for sale on the explicit condition that ownership would not be transferred until the full purchase price had been paid to Q. L needed a credit facility and approached S for credit. S was prepared to provide credit to L on condition that L furnished real security to S. L concluded an agreement with the defendant, S, in terms of which the vehicles were sold to S and immediately resold to L in terms of a floor plan agreement. At no time did either L or S intend that the vehicles should be removed from the physical control of L at his business premises. L further agreed that the resold vehicles would be held by him on behalf of S until the full purchase price had been paid to S by L. L disappeared and subsequently his estate was sequestrated without the purchase price having been paid to S. S had the vehicles removed from L's business premises. Q claims the cars from S with his rei vindicatio. What must Q prove and will Q succeed? Substantiate your answer with reference to case law. (10) (b) Is there any possibility that S may retain control of the cars? Substantiate your answer with reference to the appropriate defence and its requirements. In addition, substantiate your answer with reference to case law. (10) Possession and holdership Possession Lawful and unlawful holders: QUESTION 1: S opens his mail and finds pornographic material in it. He decides to take it to the police the next day on his way to work. In the meantime he hides it high up in a cupboard in his bedroom so that his wife and children will not see it. That night the police raid his house and discover the pornographic material. S is charged with “possession” of pornographic material in terms of the Indecent or Obscene Photographic Matter Act 37 of 1967, which prohibits such “possession”. CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 13 Property Questions - 2019 S argues that he did not possess the material, since he had no intention of keeping it for himself. Will the court accept this argument? Substantiate your answer with reference to case law. (8) QUESTION 2: X and Y are co-owners of the farm Waterford. They purchase certain farm implements from C, the cooperative in terms of a credit agreement. C re- serves ownership of the farm implements. The farm implements consist of a plough, a tractor, a harvester, spades, hoes and picks. T steals the plough. The harvester is left with the farm workers on the North-eastern corner of the farm where it is required in autumn when the wheat is harvested. Z, a neighbour, borrows the tractor for a month to plough her own fields. When Z has finished her ploughing, she lends her rented plough to X and Y in return for the loan of the tractor. 1. Who is in control of the harvester and what is the nature of this legal relationship? Substantiate your answer. (3) CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 14 Property Questions - 2019 2. Who is in control of the stolen plough and what is the nature of this legal relationship? (3) 3. Indicate the intention with which the following persons exercise control (i) X and Y with regard to the farm implements (1) (ii) X and Y with regard to the rented plough of Z, the neighbour (1) (iii) The farm workers with regard to the harvester (1) (iv) T with regard to the plough (1) (v) Z with regard to the tractor (1) (vi) Z with regard to the rented plough (1) Describe the real relationships between the following persons and things (substantiate your answer): 1. C in regard to the farm implements (2) 2. Z in regard to the tractor (2) 3. T in regard to the plough (1) QUESTION 3: S, the son of X and Y, leases a portion of his parents'' farm. When his father's farm implements are stolen, he gives some of his (rented) equipment to his father, X, to use. Father and son have an argument. In his anger X destroys his son's rented equipment. Indicate which remedy is available to S. What are the requirements to succeed? (5) QUESTION 4: Briefly mention the chief methods by which possession and holdership are terminated. QUESTION 5: S builds a dairy for Z. Z refuses to pay S the agreed amount on the due date. In December S locks the partially completed building to establish a builder’s lien over the property. At the beginning of February the following year Z takes control of the building. S applies to the court for restoration of his control. Z argues that S is not entitled to restoration of control by means of the spoliation remedy (mandament van spolie), since he did not exercise sufficient physical control. Will this argument succeed? Substantiate your answer with reference to case law. (5) Remedies QUESTION 1: REQ FOR THE ACTIO AD EXHIBENDUM QUESTION 2: The requirements for condictio furtiva: QUESTION 3: Z rents a billiard room in Newtown from S. In terms of the lease agreement Z is not allowed to serve alcohol on the premises or stay open after twelve at night. S and Z insert a term in the agreement entitling S to take control of the Critical Law Studies CC © 16 Property Questions - 2019 premises if Z contravenes any of the terms of the lease. Z serves alcohol to his friends on the premises and holds rowdy parties until sunrise. The neighbours complain to S about this. S removes the locks from the building and fits new locks. He locks all entrances to the premises and effectively debars Z from using or entering the premises. Z applies for a spoliation order. Answer the following questions: (a) What is Z’s real relationship with the billiard room? (4) (b) Write brief notes on the nature and purpose of the spolation remedy (7) (c) What will Z have to prove? (4) (d) Will Z’s application succeed? Refer to case law. (5) QUESTION 4: Employees from the local authority, without notice and without proper authority, start to break up the dam on S’s farm and dig trenches across his land. This is all part of an extensive sewerage system which also crosses S’s farm. While working on the farm, they use some of the farm implements, which S bought from the co-operative on credit, with reservation of ownership. Their use of these implements renders them useless. Discuss the remedy available to S with reference to the requirements for that remedy and to case law. (10) QUESTION 5: V and W, farm workers in the employ of S, occupy and cultivate a portion of Highlands. S has an argument with the farm workers and they refuse to work. S removes their furniture from their houses and burns it. He throws their clothing away. He also breaks down their houses and dumps the building material on a rubbish dump. V and W want immediate restoration of control of all their property. S avers that V and W were never in control of the houses because they were living elsewhere on the farm where they were harvesting their crops. Will S succeed with this defence? Substantiate your answer. (3) QUESTION 6: X and Y are owners of Waterford. S, their son, leases a portion of the farm for grazing purposes. X starts to plough on the section of their farm to which S is entitled in terms of the lease contract. S requests X to stop the ploughing on the farm. X refuses. What remedy can S use? Discuss this remedy with reference to its requirements. Interdict QUESTION 7: S transferred an exclusive right to trade on a certain piece of land to Z. Z transferred this right to his son, Zz. The right was not registered in favour of Z. S sold his farm to X. X argues that Zz is not entitled to trade on that piece of land, but Zz insists that he acquired that right from his father, Z. Which is the appropriate remedy to use here? Explain and refer to case law. (3) QUESTION 8: S rents a car from a car rental agency. In terms of the lease agreement S is liable for any damage to the car. S goes on holiday and asks Z, his sister-in- law, to park the car in her garage while he is away. She agrees. One Saturday she removes the car from the garage and takes her daughter to the doctor. The car is stolen from the doctor's parking area. The car cannot be traced and the car rental agency claims the car from S. Since S is unable to return the car, he pays the car rental agency and claims the amount from Z. Which action is applicable, what are the requirements and will Z succeed? Refer to case law. (10) QUESTION 9: Q is the owner of a car. T, a thief, steals the car. (a) T changes the engine and registration numbers and sells it to Z. Can Q claim the car from Z? If so, which remedy is applicable, what must Q prove to be successful with his claim and what are his chances of success? (4) (b) T gives the car to his son Tt to use. Can Q institute the condictio furtive against Tt? Substantiate your answer and briefly mention the requirements for this remedy. (5) (c) T changes the engine and registration numbers and sells the car to Z. The car is written off in an accident involving Z. The wreck is under the control of X, a scrap metal dealer. Discuss the following remedies and briefly indicate their applicability: (i) Rei vindicatio (5) (ii) Aquilian action (5) (iii) actio ad exhibendum (6) (iv) condictio furtiva (10) (d) Because T is afraid of being caught by the police, he sets fire to the car and destroys it. Could Q institute the actio ad exhibendum against T? What could he claim? What must he prove? Will he succeed in this case? (7) QUESTION 10: The applicant Q, a car dealer from Pretoria, provided L, a second-hand car dealer doing business in Durban, with two motor cars for sale on the explicit condition that ownership would not be transferred until the full purchase price had been paid to Q. L needed a credit facility and approached S for credit. S was prepared to provide credit to L on condition that L furnished real security to S. L concluded an agreement with the defendant, S, in terms of which the vehicles were sold to S and immediately resold to L in terms of a floor plan agreement. At no time did either L or S intend that the vehicles should be removed from the physical control of L at his business premises. L further agreed that the resold vehicles would be held by him on behalf of S until the full purchase price had been paid to S by L. L disappeared and subsequently his estate was sequestrated without the purchase price having been paid to S. S had the vehicles removed from L's business premises. (a) Q claims the cars from S with his rei vindicatio. What must Q prove and will Q succeed? Substantiate your answer with reference to case law. (10) (b) Is there any possibility that S may retain control of the cars? Substantiate your answer with reference to the appropriate defence and its requirements. In addition, substantiate your answer with reference to case law. (10) QUESTION 11: X and Y are owners of Waterford. S, their son, leases a portion of the farm for grazing purposes. X starts to plough on the section of their farm to which S is entitled in terms of the lease contract. S requests X to stop the ploughing on the farm. X refuses. What remedy can S use? Discuss this remedy with reference to its requirements. QUESTION 12: S rents a car from a car rental agency. In terms of the lease agreement S is liable for any damage to the car. S goes on holiday and asks Z, his sister- in- law, to park the car in her garage while he is away. She agrees. One Saturday she removes the car from the garage and takes her daughter to the doctor. The car is stolen from the doctor's parking area. The car cannot be traced and the car rental agency claims the car from S. Since S is unable to return the car, he pays the car rental agency and claims the amount from Z. Which action is applicable, what are the requirements and will Z succeed? Refer to case law. (10) QUESTION 13: X and Y are co-owners of the farm Waterford. They purchase certain farm implements from C, the cooperative, in terms of a credit agreement. C reserves ownership of the farm implements. The farm implements consist of a plough, a tractor, a harvester, spades, hoes and picks. T steals the plough and gives it to his son, Tt, to use. Which remedy is available to X and Y, against whom can it be instituted and what are the requirements to succeed? (5) QUESTION 14: Employees from the local authority, without notice and without the proper authority, start to break up the dam on S's farm and dig trenches across his land. This is all part of an extensive sewerage system which also crosses S's farm. While working on the farm, they used some of the farm implements, which S bought on credit with reservation of ownership from the cooperative. Their use of these implements has rendered them useless. Discuss the remedy available to S with reference to the requirements for that remedy and to case CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 22 Property Questions - 2019 law. (10) Servitudes and restrictive conditions QUESTION 1: Three ways in which a servtude is terminated. (3) Any three from the following list: 1. Upon the expiry of the period (1) for which it was established, or the QUESTION 2: Distinguish between land / praedial and personal servitudes (8) QUESTION 3: Q and R have an agreement with S in terms of which he is allowed to use the road for five years against payment of R2 000,00 per year. The money is payable in advance. After two years S has an argument with his grandfather and Q forbids him to use the road any longer. Can S force Q to allow him to use the road? Briefly substantiate your answer. (5) CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 23 Property Questions - 2019 QUESTION 4: Q and R have an agreement with S in terms of which he can use the road over their farm free of charge for as long as he lives. (a) S dies and his wife wants to use the road. Q and R refuse. Briefly advise S's wife. (2) (b) This agreement is registered against the title deed of Pulang, Q and R's farm. S dies and his wife wishes to use the road. Briefly advise S's wife. (2) QUESTION 5: Q and R have an agreement with S, the owner of Highlands, in terms of which they undertake to register a servitude over their farm in favour of Highlands. (a) Before the servitude can be registered, S dies and his wife now wishes to use the road. Briefly advise her. (3) (b) After the servitude has been registered, S dies and his wife now wishes to use the road. Under what circumstances will she be entitled to use the road? (2) (c) Before the servitude can be registered, S sells the farm to Z, the new owner, who now wishes to use the road. Under what circumstances will Z be entitled to enforce registration of the servitude? (5) CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 24 Property Questions - 2019 QUESTION 6: S has entered into an agreement with Q and R in terms of which they grant him the right to use the road to Waterford that crosses their farm. This agreement is in writing, but it is not registered. Q and R sell the farm and the new owner, who knows about the servitude agreement, refuses to allow S use of the road. Did S obtain a real right? Briefly substantiate answer with reference to case law: QUESTION 7: Z allows S to use a road over his farm to the national road to which S had no direct access. After some months Z informs S that he can no longer use the road. S approaches a neighbour who allows S to use the road over his farm. After a while, he also informs S that he can no longer use the road. S approaches the court and applies for a way of necessity. Will the court award S a way of necessity? Refer to case law. COURT ORDER: Van Rensburg Guidelines: QUESTION 8: S has a right of way over Q and R's farm, Pulang. S has a dairy farm and uses the road to transport milk to different shops in the area. One day S, Q and R have a difference of opinion, after which Q and R lock the gate that gives S access to the road. Which remedy is available to S CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 25 Property Questions - 2019 QUESTION 9: In his personal capacity, S has a right of way over Q and R's farm, Pulang. S develops part of his farm into a holiday resort and lets all his guests use the road over Pulang. Q and R are unhappy? What remedy is available to them? QUESTION 10: S's farm is close to the urban area of Newtown. S has little time for the farm and he wants to start limiting his farming operations. He obtains permission to subdivide the farm. He sells and transfers a portion of about 1000 square metres in extent to his daughter, Ss. In the title deed he inserts a condition of title, which prohibits Ss from building a double-storey dwelling on her portion and from using the premises as a business. Ss, ignoring the provisions of the condition of title, goes ahead and builds a double storey dwelling to accommodate her business of selling computer equipment. Does S have any remedy to stop Ss from building the double-storey and selling computers from the premises? State which remedy is available with reference to its requirements? (4) QUESTION 11: S's farm is close to the urban area of Newtown. S has little time for the farm and he wants to start limiting his farming operations. He obtains permission to subdivide the farm. He sells and transfers a portion of about 1000 square metres in extent to his daughter, Ss. In the title deed he inserts a condition of title, which prohibits Ss from building a double-storey dwelling on her portion and from using the premises as a business. S sells another portion of his farm to a developer, Z, who wants to develop the land as a township. After obtaining permission to develop the land as a township, Z lays out the township as Newtown Extension 1 in terms of the provincial township establishment legislation. Newtown Extension 1 comprises 30 stands of 500 square metres each. Against the title deeds of each stand in Newtown Extension 1, conditions of title are inserted which provide the following: “Only a single residential house shall be erected on the stand.” “No dairy farming is permitted on the stand.” “The buildings erected on the stand shall be built of brick with tile roofs.” “The stand shall not be used for any business purposes whatsoever.” CLS notes do not replace prescribed materials. Publishing, sale and/or distribution of CLS notes in any manner or form is strictly prohibited and constitutes a breach of copyright. Critical Law Studies CC © 26 Property Questions - 2019 Definition Although restrictive conditions as a group are not necessarily classified as limited Real security Right of retention (lien) QUESTION 1: In terms of a perfecting clause in a notarial bond Z, the bondholder, applies to the court for an order entitling him to perfect his security by taking possession of the debtor's movables and to dispose of the movables by public auction, public tender, private treaty or otherwise. Explain the role and value of this perfection clause. (6) QUESTION 2: S bought harvesting machinery from Z. He borrowed money from his parents, X and Y, to pay for the machinery. Z delivered the machinery to S, who used it on his farm. S then sold the machinery at the same price that he had paid for it to his parents and leased it back from them. S becomes insolvent and X and Y claim the machinery from the insolvent estate, relying on the rei vindicatio. They claim that they became owners of the machinery in terms of constitutum possessorium. The trustee of the insolvent estate opposes their rei vindicatio. Critical Law Studies CC © 27 Property Questions - 2019 On what grounds can he oppose their claim? Fully substantiate your answer with reference to case law. (10) QUESTION 3: S hands ostrich feathers to Z to sell on his behalf. Z is unable to sell all the feathers. Z advances a large sum of money to S and agrees that he will try to sell the feathers, if necessary, at a public auction. The feathers will serve as a pledge object for repayment of the money advanced to S. Z sells the feathers at a public auction and buys them for a very low price. S argues that this sale is invalid since it was executed in terms of an invalid summary execution clause. Will S succeed? Substantiate your answer with reference to case law. (9) QUESTION 4: B, one of S’s farm workers, wants to borrow R 2 000-00 from S. He offers an antique pocket watch, which he inherited from his grandfather as security. S accepts the watch. S and B sign a document in which B agrees that S may keep the watch if B does not repay the full amount within six months. 1. Advise S about the nature of a pledge and the way in which it must be constituted. 2. Discuss the validity of the agreement that S may keep the watch. Refer to case law. (5) QUESTION 5: S registers a special notarial bond over certain of his movable property in favour of L, the Land Bank. The movable property was listed in a schedule Critical Law Studies CC © 28 Property Questions - 2019 attached to the bond, but not described and specified in the bond itself. A year later S was declared insolvent and Z, a creditor of S's, then contested the validity of the bond on the grounds that it was impossible to identify the specific movable assets from the bond itself and that external evidence had to be used to identify the specific movable assets. Will Z's argument succeed? Discuss with reference to relevant legislation and case law. (15) The facts of this question are based on the facts in Ikea Trading Und Design AG v QUESTION 6: X and Y lease a house on their farm, to Z. Z lives in the house with his family and parents-in-law. Z fails to pay the rent. How can X and Y ensure that the rent will be paid? Advise them fully on what they should do. (5) State the circumstances under which things belonging to third parties will be subject to the tacit hypothec of the lessor. (4) QUESTION 7: Z, S's farm manager, buys furniture on credit from a furniture store. Z tells the manager of the store that he lives on S's farm, Highlands. S terminates Z's contract and Z moves to a municipal flat in town. He fails to inform the furniture store that he has moved to rented premises. Z fails to pay rent and the municipality applies to the court for an order allowing attachment of all the movable things on the leased premises. Can the furniture store object to the application for attachment? Substantiate your answer with reference to case law. (10) QUESTION 8: X and Y lease a part of their farm Waterford to Z. Although Z has been farming very successfully with cattle on the farm, he decides to begin large- scale farming with maize and other grain crops. Z is very busy and employs a foreman to take over the farming on Waterford on his behalf. The foreman lives with his wife and children in a house on the farm. Z has purchased a tractor on credit from C, the cooperative, which he stores together with his other farm implements in the shed on Waterford. Z registers a notarial bond over his green trailer, his Yamaha generator and his John Deere harvester in favour of the bank where he has overdraft facilities. Initially Z's farming operations go well but after he has a major crop failure as a result of drought, he can no longer pay the rent. The only income X and Y have is the rent. They warn Z to pay the rent and then consult their attorney. They want the attorney to attach all the movables on the farm belonging to Z. With reference to case law, discuss the attorney's advice to X and Y with regard to the attachment of the following: (a) Foreman’s furniture (3) (b) Tractor (5) (c) Farm implements (3) (d) Trailer, harvester and generator (3) QUESTION 9: T steals Q's car. T takes the car to Highway Motors, which undertook to: (i) Install a new crankshaft (ii) install a device to improve the petrol consumption (iii) Replace the upholstery with leather upholster In terms of their agreement, T was to pay R 2600-00, R 2000-00 and R 3 000-00 respectively for the above services. On passing the garage, Q sees his car and institutes the rei vindicatio against the owner of Highway Motors. Z, who was bona fide all the time, and who was under the impression that T was the owner of the car, relies on his lien and alleges that he is entitled to keep the car until the full R 7600-00 has been paid for his services. Discuss Z’s legal position QUESTION 10: S registers a special notarial bond over certain of his movable property in favour of L, the Land Bank. The movable property was listed in a schedule attached to the bond, but not described and specified in the bond itself. A year later S was declared insolvent and Z, a creditor of S's, then contested the validity of the bond on the grounds that it was impossible to identify the specific movable assets from the bond itself and that external evidence had to be used to identify the specific movable assets. Will Z's argument succeed? Discuss with reference to relevant legislation and case law. (15) QUESTION 11: Distinguish between conventional or express mortgages and tacit mortgages QUESTION 12: X and Y purchased their farm implements in terms of a credit transaction from C, the cooperative. C requires security that the debt will be paid. (a) Name two possible types of security. (b) Mention the best type of security and give a reason for your answer. (3) (c) Name the form of security you would recommend here. Substantiate your answer. (3) QUESTION 13: Name instances when a pledge will be terminated A pledge may be extinguished by: QUESTION 14: Name instances when a mortgage will be terminated Mortgage is extinguished by: Constitution: QUESTION 1: Discuss the circumstances that have to be considered in terms of section 25(3) of the 1996 Constitution when an amount of compensation for expropriation must be determined (5) QUESTION 2: S plans to start a nursery on his farm Highlands. He asks his brother, Z, to manage the nursery and agrees with Z that he may live on the farm. S decides that the fence of the nursery should be painted, but S and Z disagree about the colour. S does not want Z to live on his farm any more. Is Z an “occupier” in terms of the Extension of Security of Tenure Act 62 of 1997? Substantiate your answer. (3) QUESTION 3: S sells part of his farm to Z, a developer, who wants to develop the land as a township. After Z has obtained permission for the development, he lays out the area in terms of township establishment legislation as Newtown Ex- tension 1. Newtown Extension 1 consists of 30 stands of 500 square metres each. Against the title deeds of each stand in Newtown Extension 1 a condition of title is inserted into all the title deeds, which provides that only a single residential dwelling house may be erected on the stand. Explain how a court could interpret whether the condition of title would constitute a deprivation in terms of section 25(1) of the Constitution. (5) QUESTION 4: S is the owner of the farm Highlands. The municipality needs to build a dam on S’s property and wants to purchase a portion of his farm. He refuses. The municipality expropriates that portion of S’s farm, but is uncertain whether compensation must be paid for the expropriation and how it would be calculated. Fully advise the municipality. (10) QUESTION 5: X and Y are the owners of Waterford. On 1 September 2000 they enter in- to an agreement with Z in terms of which Z hires the farm from them for 10 years. The contract of lease is registered in the deeds registry. The lease terminates on 31 August 2010. X and Y do not renew the lease. Z refuses to vacate the farm. Will the Extension of Security of Tenure Act 62 of 1997 protect Z from eviction? Substantiate your answer. (4) QUESTION 6: A group of squatters occupy a part of S's farm, Highlands, without his permission. S is very unhappy and wants to evict the group of squatters. Which legislation is applicable to the eviction of such squatters. QUESTION 7: V and W live in the city and work for S, the owner of Highlands. The farm Highlands was taken from their parents in 1923 in terms of racially based legislation in return for compensation. They claim the return of the farm in terms of the Restitution of Land Rights Act 22 of 1994. Since the farm was taken away from their parents, it has been developed into a commercial farm and hundreds of people are employed on the farm and also live there. The Land Claims Court refuses to give the farm back to V and W, although the court found that the amount of compensation paid to their parents was in- adequate at the time of the dispossession. 1. Into which of the three categories of land reform does this claim fall? (1) RESTITUTION OF LAND RIGHTS ACT 2. Which orders may the Land Claims Court make in terms of the Restitution of Land Rights Act 22 of 1994? (5) QUESTION 8: D, E, F and G work on Pulang, a farm belonging to Q and R. D and E live on the farm and have the right to use a portion of the farm for cropping or grazing purposes in exchange for the work they perform for Q and R. F and G work on the farm, are paid a monthly wage and reside there. Because of continual crop failures Q and R are forced to reduce their farming activities. As a result they have to evict some of the workers on the farm. Indicate which statutes the parties could possibly invoke in support of their claims and briefly explain why these statutes could be applicable. (10) QUESTION 9: Mineral and Petroleum Resources Development Act 28 of 2002 - what is excluded from the defintion of a mineral? How does one get prospecting rights? QUESTION 10: Briefly discuss the most important differences between the Water Act 54 of 1956 and the National Water Act 36 of 1998. (6) QUESTION 11: Discuss the reasons that led to the introduction of the lease overrides sale rule (“huur gaat voor koop”) in Roman law. (3) QUESTION 12: Define sectional title ownership. (5) Why was statutory intervention required to make provision for sectional title ownership? QUESTION 13: What is the nature of the right of a shareholder in a share block company? Briefly explain with reference to the object of the right. SHARE BLOCKS CONTROL ACT 59 OF 1980 QUESTION 14: HOUSING DEVELOPMENT SCHEMES FOR RETIRED PERSONS ACT 65 OF 1988 The following types of housing development schemes can be established: 1. A sectional title scheme in terms of the Sectional Titles Act 95 of 1986 (real right) QUESTION 15: PROPERTY TIME-SHARING CONTROL ACT 75 OF 1983 A property time-sharing scheme can be established either as: (i) A sectional title scheme in terms of the Sectional Titles Act 95 of 1986 (real right) (ii) [Show More]

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