CLA 1501 questions with all the correct answers(Latest update 2020)

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CLA1501 PART A QUESTION 1 Which ONE of the following is NOT an authoritative source of South African law? 1 Statute law 2 Customary law 3 The old authorities 4 Judgments of the superior courts ... 5 Foreign law QUESTION 2 Which ONE of the following is NOT a requirement for a customary rule to be recognised as a legal rule? 1 It must have existed for a long time and be reasonable. 2 It must be generally recognised and observed by the community. 3 The contents thereof must be certain and clear. 4 It must have been reduced to writing. QUESTION 3 Solomon works on a Welkom goldmine. Before leaving his home in Limpopo he asked his nephew, Bheki, to look after his cattle during his absence and gave him permission to use the cattle. Everyone in their village now considers the cattle to be Bheki’s as Solomon has been gone for so long. Bheki uses the dung of the cattle to fertilise his fields and he sells and consumes their milk. Which ONE of the following statements is CORRECT under the circumstances? 1 Bheki is the usufructuary of the cattle. 2 Bheki is the holder of a praedial servitude in the cattle. 3 Bheki is the pledgee of the cattle. 4 Bheki is the mortgagee of the cattle. 5 Bheki is the owner of the cattle through prescription. QUESTION 4 Freddie gets involved in an argument with a man in a sports bar one Friday evening, on the merits of a certain rugby team. The argument gets heated; Freddie loses his temper and assaults the other man, to the extent that the man loses consciousness. Freddie decides to go home. On his arrival, he finds his two year old son seriously ill. Still upset from the incident at the pub, he rushes to take the child to the emergency ward of the local hospital. On his way there he is caught driving 140 km/h in a 80 km/h zone. He is summoned to appear in court on a charge of contravening the traffic regulations. On which ONE of the following grounds of justification can Freddie rely? 1 Necessity 2 Provocation 3 Self-defence 4 Consent QUESTION 5 Robert wants to rent a house belonging to Johnny. Johnny tells Robert about the terms of his offer. Robert is not sure whether he should accept the offer or not and he asks for more time to consider it. They agree that the offer will remain open for a period of one week. The following day Johnny is approached by Masedi who also wants to rent the house. Which ONE of the following statements is CORRECT? 1 Johnny may let the house to Masedi because there is no contract that forbids him fromdoingso. 2 Johnny may let the house to Masedi while his offer to Robert is still open. 3 Johnny must keep the offer open for a period of one week until Robert has rejected oraccepted it. 4 Johnny may not let the house to Masedi even after the period of one week has lapsed, but must wait until Robert has given him an answer. QUESTION 6 Kwena and Richard negotiated the sale of a house. Kwena represented to Richard that the house had a sound foundation and that there was no danger of the walls starting to crack. They both signed the contract and two days later, after a heavy thunderstorm, three walls cracked as a result of the house having been built on clay. Which ONE of the following statements is CORRECT? 1 The agreement between Kwena and Richard is void on grounds of misrepresentation. 2 Richard does not have any remedies against Kwena since he signed the contract of sale. 3 The contract between Kwena and Richard is voidable on grounds of misrepresentation. 4 No contract came into existence because the parties did not reach consensus. QUESTION 7 The following parties are involved in contractual negotiations for the establishment of the first multi million rand virtual reality theme park in Pretoria called “Cyber Pretoria 1”. Which ONE of the parties will NOT have the capacity to contract independently? 1 Arthur, a Jamaican businessman who is domiciled and resident in Jamaica. 2 Mabel, a very wealthy widow. 3 Pepe, a sixteen year old computer whiz-kid. 4 Pedro, a billionaire's son with prodigal tendencies. QUESTION 8 Vic and Tahira married out of community of property on 1 November 1999. Which ONE of the following statements is CORRECT? 1 Vic and Tahira have a joint estate. 2 Vic and Tahira both lose their full capacity to act on marriage. 3 Vic and Tahira are jointly and severally liable to third parties for debts incurred for necessaries for the common household. 4 Tahira has to give her consent for the sale of a farm which belongs to Vic. QUESTION 9 After ten years in a business partnership with Paul, which sells tyres, Tim wants to terminate the partnership. Since Tim’s business partner, Paul will be entitled to half of the assets of the partnership at the time of termination, Tim concludes a contract with a professional killer, Mr Assassin, in terms of which he will pay Mr Assassin the amount of R20 000 to kill Paul. The next day Paul dies of natural causes. Which ONE of the following statements is CORRECT? 1 Mr Assassin is not entitled to payment in terms of the contract because performance has become impossible. 2 Mr Assassin is not entitled to payment because the agreement between him and Tim is contrary to public policy. 3 Mr Assassin is entitled to payment in terms of the contract because performance has become impossible. 4 Mr Assassin is not entitled to payment because it is an implied term of the contract that Paul must be killed by Mr Assassin, not die of natural causes QUESTION 10 Victor places a bet with Derick, a bookmaker at the local totalisator, that the Proteas will win the cricket test against Australia. The Proteas win the test, but Derick refuses to pay Victor his winnings. The bets at this totalisator are regulated by the National Gambling Act. Which ONE of the following statements is CORRECT? 1 Victor has no enforceable right against Derick for his winnings, since at common law awagering contract is invalid. 2 Victor has no contractual claim against Derick for his winnings, since their contract iscontrary to good morals. 3 Victor has an enforceable right against Derick on the grounds of unjustified enrichment. 4 Victor has an enforceable right against Derick for his winnings, since the contract is validand lawful. PART B QUESTION 1 On her birthday Liz receives an expensive watch as a gift from her Aunt Martha. Four months later Aunt Martha informs Liz that she wants the watch back. What is the legal position? 1 Aunt Martha is not entitled to take the watch back, because a valid contract of donation was concluded. 2 Aunt Martha is entitled to take back the watch, because the contract of donation should have been in writing and signed by Aunt Martha. 3 Aunt Martha can claim the watch from Liz on the ground of unjustified enrichment. 4 Liz is obliged to give back the watch, but she can claim damages from Aunt Martha. QUESTION 2 Which ONE of the following statements regarding the signing of electronic transactions is CORRECT? 1 An electronic signature always performs the same legal function as a handwritten signature. 2 Where a signature is required by law, the typing of a name at the end of the document will be an acceptable signature. 3 A scanned handwritten signature qualifies as an electronic signature. 4 An advanced electronic signature results from an accredited process and allows the recipient to verify the date and time it was sent. QUESTION 3 Rose enters into an agreement with her friend, Sandra, in terms of which Rose will use Sandra’s house until she buys her own house. This is an example of a … 1 resolutive condition. 2 suspensive condition. 3 resolutive time clause. 4 suspensive time clause. QUESTION 4 Clarence wants to purchase a stand from June only if the beach is visible from the stand. June is not sure whether the beach is visible from the stand. They agree that Clarence will purchase the stand if the beach is visible from the stand. What is such a contractual term called? 1 a warranty 2 a condition 3 a modus 4 a supposition QUESTION 5 Thabo and Tshepo conclude a written contract of loan. When they initially discussed the contract, the idea was that the loan would be repayable only after three years. However, the written document expressly provides for immediate repayment of the loan if Thabo requests it. Assuming that Thabo will not invoke this term, Tshepo signs the contract. Two months later, Thabo calls up the loan with immediate effect. Which ONE of the following statements reflects the CORRECT legal position? 1 Tshepo is entitled to apply for the rectification of the written contract. 2 Thabo has committed breach of contract by calling up the loan and Tshepo can claimdamages. 3 Tshepo can rely on the oral agreement between herself and Thabo and can refuse torepay the loan immediately. 4 The integration rule (parol evidence rule) prevents Tshepo from relying on the oralagreement and she is obliged to repay the loan immediately. QUESTION 6 Penelope and Hugh conclude a written agreement for the sale of a three piece lounge suite. At a later stage Hugh discovers that he accidentally wrote "a four piece lounge suite". Which ONE of the following statements is CORRECT? 1 Hugh will have to deliver a four piece suite because the mistake occurred as a result of his negligence. 2 Hugh will have to deliver a four piece suite because the parol evidence rule precludes him from relying on the intended agreement. 3 Hugh can apply for the rectification of the agreement. 4 The contract between the parties is void for vagueness. QUESTION 7 Leon, who owns a shop that sells seafood, buys fresh fish from Seasong Fisheries. Leon and Seasong Fisheries agree that Seasong Fisheries will deliver the fish to Leon’s shop on 16 April. On that date Leon forgets that Seasong will deliver the fish, and closes his shop for the day in order to attend a funeral in a nearby town. When Seasong Fisheries arrives at Leon’s shop with the fresh fish, the doors are locked and there is nobody to receive the fish. Which ONE of the following statements is CORRECT? 1 Leon committed breach of contract in the form of mora debitoris. 2 Leon committed breach of contract in the form of mora creditoris. 3 Leon committed breach of contract in the form of repudiation of the contract. 4 Leon committed breach of contract in the form of prevention of performance by thedebtor. 5 Leon committed breach of contract in the form of prevention of performance by thecreditor. QUESTION 8 In terms of a written agreement, Conrad purchased a house from Leonard for R650 000. Conrad paid an amount of R100 000 as deposit. The balance of the purchase price was to be covered by a loan from the bank payable on registration. Owing to fault on Leonard’s part, the transfer of the house into Conrad’s name was delayed. Conrad sent a letter to Leonard demanding that transfer be effected within two months, and he would then pay the balance of the purchase price. Conrad also stated in the letter that he would rescind from the contract and demand repayment of the deposit and claim damages if Leonard failed to co-operate. Which ONE of the following statements is CORRECT? 1 Conrad is not entitled to send a letter of demand to Leonard, because Conrad has notpaid the agreed purchase price for the house in full. 2 Conrad is entitled to claim transfer of the house into his name. 3 Because Conrad is in mora, Leonard will be released from his obligation to performunless his non-performance is intentional or due to his own gross negligence. 4 Because Leonard is in mora, Conrad is released from his obligation to perform even if hisnon-performance is intentional or due to his own gross negligence. QUESTION 9 Alex sells his car to Brian and his library of rare books to Chris. It is an express term of his contract with Brian that the car must be delivered by 6 June. The contract between Alex and Chris does not stipulate any date for the delivery of the books to Chris. Alex does not deliver the car to Brian or the books to Chris. Which ONE of the following statements is CORRECT in respect of the legal steps that may be taken against Alex? 1 Brian and Chris may, in principle, claim delivery of the car and the book respectively. 2 Brian cannot claim delivery of the car but can only cancel the contract. 3 Chris is immediately entitled to cancel the contract for the sale of the books. 4 Brian cannot apply for an interdict to prevent Alex from selling the car to Edward at a higher price QUESTION 10 Connie wins a gift voucher from Shine Car Fixtures. In terms of the voucher, she is entitled to a free car wash. Since she does not own a car, she cedes her right to the car wash to her friend Barry. Which ONE of the following statements is CORRECT? 1 An agreement between Connie and Shine Car Fixtures in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 2 An agreement between Connie and Barry in terms of which Barry becomes entitled to performance by Shine Car Fixtures, is a cession of rights. 3 An agreement between Connie and Barry in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 4 An agreement between Shine Car Fixtures and Barry in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 5 An agreement between Shine Car Fixtures and Barry in terms of which Barry becomes entitled to the performance of Shine Car Fixtures, is a cession of rights. PART C QUESTION 1 Which ONE of the following is NOT an authoritative source of South African law? 1 South African case law 2 Corpus Iuris Civilis 3 English case law 4 The Constitution of the Republic of South Africa, 1996 5 Judgments of the Dutch courts before 1652 QUESTION 2 Which ONE of the following officers is responsible for the issue of process, the enrolment of cases, the maintenance of records and the issuing of orders of the High Court? 1 the Clerk 2 the Registrar 3 the litigating parties themselves 4 the Sheriff QUESTION 3 Nkosi wishes to grant Ntola a usufruct to live in Nkosi’s house. The parties are not sure of the law regarding usufruct. Which ONE of the following statements is INCORRECT? 1 Ntola would have the right to let the house if he had to move to another province. 2 Ntola is entitled to demolish one wing of the house and install a swimming pool in that area. 3 Ntola is not allowed to sell Cheslin the right to occupy the house. 4 Nkosi can grant Ntola a usufruct to last until Ntola graduates from university in four years’time. QUESTION 4 Which ONE of the following is NOT a requirement for the conclusion of a valid contract? 1 Each party to the contract must have capacity to act. 2 There must be consensus between the parties. 3 It must be physically possible to perform in terms of the contract. 4 The contract must be permitted by law. 5 The contract must be in writing, signed and dated. QUESTION 5 Richard makes an offer to buy Tumelo’s motor car for R1 000. He gives Tumelo 10 days to accept his offer. On the ninth day Tumelo informs Richard that he accepts the offer, but that he wants the amount of R1 200. Which ONE of the following statements is CORRECT? 1 A contract came into existence between Richard and Tumelo with a purchase price ofR1 200. 2 A contract came into existence between Richard and Tumelo with a purchase price ofR1 000. 3 No contract came into existence between Richard and Tumelo as Tumelo made acounteroffer,which has not yet been accepted. 4 Richard’s offer still stands. QUESTION 6 Muzi and Siphokazi arrange telephonically to meet at Jacko’s Restaurant. At the restaurant Muzi offers to buy Siphokazi’s car for R35 000 which Siphokazi accepts without hesitation. A week later, Siphokazi calls Muzi to tell him how pleasant it is doing business with him. The delivery of the car and the payment of the purchase price takesplace two days after the call, at the Menlyn Shopping Mall. When and where did the contract come into being? 1 The moment Siphokazi accepted the offer at Jacko’s Restaurant. 2 The moment Siphokazi telephoned Muzi to tell him how pleasant it was doing business withhim. 3 The moment Muzi and Siphokazi arranged telephonically to meet at Jacko’s Restaurant. 4 The moment the delivery of the car and the payment of the purchase price took place at theMenlyn Shopping Mall. Restaurant. QUESTION 7 Which ONE of the following statements is CORRECT? 1 A minor is any person who has not yet reached the age of majority. 2 A minor is any person who has not yet been declared a major by the court. 3 A minor over the age of seven has limited capacity to act. 4 A minor who attained majority through marriage will lose it if the marriage is dissolved before the minor reaches the age of majority. QUESTION 8 Andrie, who is 16 years old, sells his computer for R1 500 to Abila, a 19-year-old divorced woman, without the consent of his guardian. Abila regards this as a big bargain and keenly pays Andrie the agreed amount. They agree that Andrie will deliver the computer the following week. Andrie recklessly squanders the R1 500, and decides not to deliver the computer. Which ONE of the following statements is CORRECT? 1 Andrie’s guardian is liable to repay Abila the R1 500. 2 Abila has no contractual claim against Andrie for the return of the R1 500. 3 Abila can sue Andrie for the return of the R1 500 on the ground ofunjustified enrichment. 4 Andrie committed breach of contract and Abila can therefore claimspecific performance of the contract. . QUESTION 9 Jo owes Lloyd an amount of R5 000. Jo and Lloyd enter into an agreement in terms of which Lloyd will cancel the debt if Jo agrees to divorce his wife so that Lloyd can marry her. Which ONE of the following statements is CORRECT? 1 Jo and Lloyd’s contract is lawful because they have reached consensus. 2 Jo and Lloyd’s contract is lawful because they both have capacity to enter into juristic acts. 3 Jo and Lloyd’s contract is unlawful because their agreement is contrary to public policy. 4 Jo and Lloyd’s contract is unlawful because their agreement is contrary to good morals. QUESTION 10 Which ONE of the following contracts between Mr Sly and Mrs Naive will be legally possible to perform? 1 Mr Sly sells fifty square kilometres of ocean just off Mossel Bay to Mrs Naive for R200 000to be registered in terms of title deed no T/ 456 in the Cape Town Deedsoffice. 2 Mr Sly undertakes to have all Mrs Naïve’s speeding tickets quashed in return for herhusband’s soccer tickets for the season. 3 Mr Sly accepts a wager from Mrs Naive in terms of which he undertakes to pay her R10 000if the horse Yankee Doodle wins the Queen’s Cup. 4 Mr Sly agrees with Mrs Naive to murder her husband, who is having an affair with MissSexy, his secretary, for R50 000. QUESTION 11 Before their wedding Musa and his fiancée, Lisa, agree on the following financial arrangements, which are included in their antenuptial contract: A that Musa’s house at 20 Borokong Street, Randburg will be the family home of the couple; B that the said house will be registered in Lisa’s name; C that Musa will stand surety for the loan Lisa needs to buy a new car; D that the marriage will be out of community of property; E that Musa will attend to the typing, signing and registration of all the documents relating to the antenuptial contract. After the wedding none of the antenuptial contract documents have been typed, signed or registered. Which ONE of the following statements is CORRECT? 1 Musa and Lisa will not be bound by the terms of their antenuptial contract because Musaforgot to type and register it. 2 Lisa is the legal owner of the family home. 3 Lisa is solely liable for the purchase price of her car. QUESTION 12 On her birthday Liz receives an expensive watch as a gift from her Aunt Martha. Four months later Aunt Martha informs Liz that she wants the watch back. What is the legal position? 1 Aunt Martha is not entitled to take the watch back, because a valid contract of donation was concluded. 2 Aunt Martha is entitled to take back the watch, because the contract of donation should have been in writing and signed by Aunt Martha. 3 Aunt Martha can claim the watch from Liz on the ground of unjustified enrichment. 4 Liz is obliged to give back the watch, but she can claim damages from Aunt Martha. present instance no performance is due in the future. The contract between aunt Martha and Liz is valid because performance has taken place. Liz is therefore the rightful owner of the watch. QUESTION 13 Which ONE of the following statements is CORRECT? 1 The essentialia of a contract are the terms which the law attaches to every contract of a particular class. 2 The naturalia of many contracts known to South African law are based mainly on ideasoriginating in Roman-Dutch law. 3 The incidentalia are the additional terms which are included in a contract in order to providefor special requirements of the parties. QUESTION 14 Betty is appointed as director of Toko Ltd in terms of a contract which will terminate after three years. In her last year as director she concludes a building contract on behalf of Toko Ltd. In terms of the building contract, building will start two months before Betty’s contract with Toko Ltd terminates. Four statements are made about these contracts: A Betty’s contract as director is subject to a suspensive time clause. B Betty’s contract as director is subject to a resolutive time clause. C The building contract is subject to a resolutive time clause. D The building contract is subject to a suspensive time clause. Which of the above statements are CORRECT? 1 A and D 2 A and C 3 B and C 4 B and D QUESTION 15 Thabo and Tshepo conclude a written contract of loan. When they initially discussed the contract,the idea was that the loan would be repayable only after three years. However, the writtendocument expressly provides for immediate repayment of the loan if Thabo requests it. Assumingthat Thabo will not invoke this term, Tshepo signs the contract. Two months later, Thabo calls upthe loan with immediate effect. Which ONE of the following statements reflects the CORRECT legal position? 1 Tshepo is entitled to apply for the rectification of the written contract. 2 The parol evidence rule prevents Tshepo from relying on the oral agreement and she isobliged to repay the loan immediately. 3 Tshepo can rely on the oral agreement between herself and Thabo and can refuse to repaythe loan immediately. 4 Thabo has committed breach of contract by calling up the loan and Tshepo can claimdamages. QUESTION 16 Penelope and Hugh conclude a written agreement for the sale of a three piece lounge suite. At a later stage Hugh discovers that he accidentally wrote "a four piece lounge suite". Which ONE of the following statements is CORRECT? 1 Hugh will have to deliver a four piece suite because the mistake occurred as a result of his negligence. 2 Hugh will have to deliver a four piece suite because the parol evidence rule precludes him from relying on the intended agreement. 3 Hugh can apply for the rectification of the agreement. 4 The contract between the parties is void for vagueness. QUESTION 17 Which ONE of the following statements is CORRECT? When a party to a contract indicates that he or she does NOT intend to perform in terms of the contract, we have breach of contract in the form of 1 mora debitoris. 2 repudiation. 3 positive malperformance. 4 prevention of performance. QUESTION 18 Alex sells his car to Brian and his library of rare books to Chris. It is an express term of his contract with Brian that the car must be delivered by 6 June. The contract between Alex and Chris does not stipulate any date for the delivery of the books to Chris. Alex does not deliver the car to Brian or the books to Chris. Which ONE of the followings statements is CORRECT in respect of the legal steps that may be taken against Alex? 1 Brian and Chris may, in principle, claim delivery of the car and the books respectively. 2 Brian cannot claim delivery of the car but can only cancel the contract. 3 Chris is immediately entitled to cancel the contract for the sale of the books. 4 Brian cannot apply for an interdict to prevent Alex from selling the car to Edward at a higher price. QUESTION 19 Connie wins a gift voucher from Shine Car Fixtures. In terms of the voucher, she is entitled to a free carwash. Since she does not own a car, she cedes her right to the carwash to her friend Barry. Which ONE of the following statements is CORRECT? 1 An agreement between Connie and Shine Car Fixtures in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 2 An agreement between Connie and Barry in terms of which Barry becomes entitled to performance by Shine Car Fixtures, is a cession of rights. 3 An agreement between Connie and Barry in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 4 An agreement between Shine Car Fixtures and Barry in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 5 An agreement between Shine Car Fixtures and Barry in terms of which Barry becomes entitled to the performance of Shine Car Fixtures, is a cession rights. QUESTION 20 Ike owes Vera R20 000 which she lent him two months ago. Which ONE of the following statements is CORRECT? 1 Vera may refuse to accept payment of Ike’s debt if it is not tendered by Ike himself. 2 Nothing except an amount of R20 000 from Ike to Vera will qualify as payment of his debt. 3 If Len owes Ike R25 000, Ike may cede his claim against Len to Vera to the amount of R20 000. 4 If Ike and Vera get married in community of property Ike’s debt will automatically terminate. CLA1501 PART C QUESTION 1 Which ONE of the following legal systems is the basis of the South African legal system? 1 Dutch law 2 Roman law 3 English law 4 Roman-Dutch law QUESTION 2 Which ONE of the following officers is responsible for the issue of process, the enrolment of cases, the maintenance of records and the issuing of orders of the High Court? 1 the Clerk 2 the Registrar 3 the litigating parties themselves 4 the Sherif QUESTION 3 The right to claim performance from someone is a/an... 1 real right. 2 intellectual property right. 3 personality right. 4 personal right. QUESTION 4 Solomon works on a Welkom goldmine. Before leaving his home in Limpopo he asked his nephew, Bheki, to look after his cattle during his absence and gave him permission to use the cattle. Everyone in their village now considers the animals to be Bheki’s as Solomon has been gone for so long. Bheki uses the dung of the cattle to fertilise his fields and he sells and consumes their milk. Under these circumstances, which ONE of the following statements is CORRECT? 1 Bheki is the usufructuary of the cattle. 2 Bheki is the holder of a praedial servitude in the cattle. 3 Bheki is the pledgee of the cattle. 4 Bheki is the mortgagee of the cattle. 5 Bheki is the owner of the cattle through prescription. QUESTION 5 Shaun studies B Com at Unisa. While writing an examination he sees a beautiful girl, Sandy, 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 the next Friday at 6 o’clock in front of Sterland. Shaun arrives on time, but Sandy is not there. After he has waited for more than two hours, he goes home, and consults his Commercial Law textbook to see whether he can take legal action against Sandy for not honouring their appointment. Only later Shaun learns that Sandy’s car broke down on her way to Sterland. Which ONE of the options provided below will complete the following sentence CORRECTLY? Shaun’s appointment with Sandy 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 Sandy to honour their appointment. 4 it was not juridically possible for Sandy to honour their appointment. QUESTION 6 Robert wants to rent a house belonging to Johnny. Johnny tells Robert about the terms of his offer. Robert is not sure whether he should accept Johnny’s offer or not and he asks for more time to consider it. They agree that the offer will remain open for a period of one week. The following day Johnny is approached by Masedi who also wants to rent the house. Which ONE of the following statements is CORRECT? 1 Johnny may let the house to Masedi because there is no contract that forbids him from doing so. 2 Johnny may let the house to Masedi while his offer to Robert is still open. 3 Johnny must keep the offer open for a period of one week until Robert has rejected or accepted it. 4 Johnny may not let the house to Masked even after the period of one week has lapsed, but must wait until Robert has given him an answer. QUESTION 7 Which ONE of the following could have an influence on a natural person’s legal capacity? 1 mental deficiency 2 being under the influence of alcohol or drugs 3 having been declared a prodigal by the High Court 4 all of the above 5 none of the above QUESTION 8 Andrie, who is 16 years old, sells his computer for R1 500 to Abila, a 19-year-old divorced woman, without the consent of his guardian. Abila regards this as a big bargain and keenly pays Andrie the agreed amount. They agree that Andrie will deliver the computer the following week. Andrie recklessly squanders the R1 500, and decides not to deliver the computer. Which ONE of the following statements is CORRECT? 1 Andrie’s guardian is liable to repay Abila the R1 500. 2 Abila has no contractual claim against Andrie for the return of the R1 500. 3 Abila can sue Andrie for the return of the R1 500 on the ground of unjustified enrichment. 4 Andrie committed breach of contract and Abila can therefore claim specific performance of the contract. QUESTION 9 Which ONE of the following contracts between Mr Fox and Mrs Angel will be legally possible to perform? 1 Mr Fox undertakes to have all Mrs Angel’s speeding tickets quashed in return for her husband’s rugby tickets for the season. 2 Mr Fox accepts a wager from Mrs Angel in terms of which he undertakes to pay her R20 000 if the horse Dream Catcher wins the Durban July Cup. 3 Mr Fox agrees with Mrs Angel to murder her husband, who is having an affair with Miss Small, his secretary, for R 10 000. 4 Mr Fox sells hundred square kilometres of ocean just off Mossel Bay to Mrs Angel for R500 000 to be registered in terms of title deed no T/ 456 in the Cape Town Deeds Office. QUESTION 10 Harry illegally sells unlicensed cycads to Nicky. Nicky pays the agreed purchase price in cash. Harry subsequently refuses to deliver the cycads to Nicky. Which ONE of the following statements is CORRECT? 1 Nicky can claim delivery of the cycads from Harry on the basis of the contract which arose between them. 2 Nicky can reclaim the purchase price from Harry on the ground of unjustified enrichment. 3 The contract between Harry and Nicky is void due to legal impossibility. 4 Options (2) and (3) above are both correct. PART D QUESTION 1 Which ONE of the following statements is CORRECT? 1 An antenuptial contract has to be in writing in order to be effective against persons who are not parties to it. 2 An antenuptial contract has to be registered in order to be binding on the contracting parties. 3 An antenuptial contract has to be registered in order to be effective against persons who are not parties to it. 4 An antenuptial contract has to be registered only if it provides for donations under which performance is still due. QUESTION 2 Which ONE of the following contracts must be in writing and signed in order to be valid? 1 A contract where a wager is made. 2 A contract where a car is sold. 3 A contract where land is sold. 4 A contract where a house is leased. QUESTION 3 Which ONE of the following statements is CORRECT? 1 The essentialia of a contract are the terms which the law attaches to every contract of a particular class. 2 The naturalia of many contracts known to the South African law are based mainly on ideas originating in Roman-Dutch law. 3 The incidentalia are the additional terms which are included in a contract in order to provide for special requirements of the parties. QUESTION 4 While at work, Dirk and Sunette agree that Sunette will purchase Dirk’s old lounge curtains, provided that they are blue and not green. The curtains are at Dirk’s house, but because he is colour blind, he is not sure what the colour is. This contract contains a... 1 supposition. 2 modus. 3 warranty. 4 conditions. QUESTION 5 The law recognizes that, in appropriate circumstances, a written contract may be rectified. In which ONE of the following circumstances is rectification permissible? 1 if the parties can prove their true intention and that the contract does not accurately reflect their intention 2 if the parties can prove their true intention as well as the fact that when the contract was concluded, they agreed that the integration rule would not apply 3 if the parties can prove their true intention and that rectification of the contract will not be to the detriment of any third party QUESTION 6 The Guggenheim Gallery has invited Jane to exhibit twenty of her most recent sculpture works at an exhibition which opens on 1 September. David and Jane enter into an agreement in terms of which David agrees to build stands for Jane’s sculptures. David agrees to make the stands out of stainless steel in order for them to contrast properly with the bronze of the sculptures. They agree that Jane will pay David R100 000 when she collects the stands from him on 25 August. David uses plastic to build the stands for the sculptures. Jane meets David on 25 August to collect the stands. David claims payment of R100 000 for the stands. Jane refuses to pay for the stands. She claims that David has used plastic to build the stands and that there is not enough time to build twenty stainless-steel stands in time for the exhibition which opens on 1 September. Jane is of the opinion that David has breached their agreement. Which ONE of the following statements CORRECTLY reflects the form of breach of contract that John has committed? 1 David’s building the stands out of plastic constitutes repudiation. 2 David’s building the stands out of plastic constitutes positive malperformance. 3 David’s building the stands out of plastic constitutes mora debitoris. QUESTION 7 Neil and Grant are members of a close corporation known as Fireflies CC, a business which sells fireplaces. The association agreement contains a restraint of trade clause which regulates the situation should one of them resign as a member of the close corporation. The restraint of trade clause provides that in such an instance, neither of the members will carry on the business of selling fireplaces within seven kilometres of the premises of Fireflies CC for a period of one year after resignation. Neil resigns as member of Fireflies CC and immediately opens another shop selling fireplaces just around the corner from Fireflies CC. Which ONE of the following statements is CORRECT? 1 Neil’s behaviour amounts to repudiation, because it indicates that he does not intend honouring his obligations in terms of the association agreement. 2 Neil is not in breach of contract, because he has resigned as member of Fireflies CC and in doing so is no longer bound to the terms of the association agreement. 3 Although Neil is in breach of contract, Grant cannot enforce the restraint clause unless he can prove that it is reasonable. 4 Unless Neil can show that the restraint clause is contrary to public policy, his contravention of the restraint clause will constitute breach of contract. If Neil can show that the restraint clause is contrary to public policy, the restraint clause will not be enforceable. QUESTION 8 Alex sells his car to Brian and his library of rare books to Chris. It is an express term of his contract with Brian that the car must be delivered by 6 June. The contract between Alex and Chris does not stipulate any date for the delivery of the books to Chris. Alex does not deliver the car to Brian or the books to Chris. Which ONE of the followings statements is CORRECT in respect of the legal steps that may be taken against Alex? 1 Brian and Chris may, in principle, claim delivery of the car and the books respectively. 2 Brian cannot claim delivery of the car but can only cancel the contract. 3 Chris is immediately entitled to cancel the contract for the sale of the books. 4 Brian cannot apply for an interdict to prevent Alex from selling the car to Edward at a higher price. QUESTION 9 Connie wins a gift voucher from Shine Car Fixtures. In terms of the voucher, she is entitled to a free carwash. Since she does not own a car, she cedes her right to the carwash to her friend Barry. Which ONE of the following statements is CORRECT? 1 An agreement between Connie and Shine Car Fixtures in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 2 An agreement between Connie and Barry in terms of which Barry becomes entitled to performance by Shine Car Fixtures, is a cession of rights. 3 An agreement between Connie and Barry in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 4 An agreement between Shine Car Fixtures and Barry in terms of which a new obligation is created between Shine Car Fixtures and Barry, is a cession of rights. 5 An agreement between Shine Car Fixtures and Barry in terms of which Barry becomes entitled to the performance of Shine Car Fixtures, is a cession of rights. QUESTION 10 Caleb owes Don R20 000 in respect of several debts. Caleb pays Don R10 000, but does not stipulate which debt/s he is actually paying. Which ONE of the following principles will apply in this case? 1 Capital is paid before interest. 2 Due debts are paid before debts which have not yet fallen due. 3 Onerous debts do not have preference over non-onerous debts. 4 Old debts do not have preference over new debts. PART E QUESTION 1 The law in South Africa, authoritative and persuasive, is drawn from a number of sources. These sources may include: A a single recorded and comprehensive piece of South African legislation B the codified legal systems of certain continental European countries C works of Roman-Dutch authors D judgments of local and foreign courts Which ONE of the following is CORRECT? 1 only A 2 only A and B 3 only B, C and D 4 only C and D 5 only A, C and D QUESTION 2 Winston provided in his will that on his death ownership of his farm, Green Park, which is situated close to Vereeniging, would pass to his younger son Noel and that Winston’s widow, Miriam would have the right to stay on the farm and use it as long as she lived, a so-called life-interest. During his lifetime Winston used the property for dairy farming, for growing wheat crops and for cultivating vegetables. Which ONE of the following statements is CORRECT? 1 Miriam’s right is an example of a personal servitude and is called a usufruct. 2 The farm, Green Park, is called the dominant tenement. 3 Miriam may replace the wheat fields with a dirt track racing course, for which a need exists in Vereeniging and which would be less work for her than cultivating wheat. 4 Noel is entitled to the dairy products and vegetables produced on the farm. QUESTION 3 Mpho owns a smallholding of ten acres. Neil, Mpho’s neighbour, owns a smallholding called “Prosperity”. Neil has abundant grazing on his smallholding. Since May 1968 Mpho has been driving his flock of sheep onto Neil’s plot during the winter months. Neil has allowed Mpho’s practice. Neil has now given Mpho a letter in which he forbids him to make use of the grazing in future, as from May 2000. Mpho is of the opinion that he has obtained certain rights by means of prescription. Which ONE of the following statements is CORRECT? 1 Mpho has obtained a personal servitude in respect of grazing, by means of prescription. 2 Mpho has obtained a real right of occupation by means of prescription for the winter months. 3 Mpho has obtained a usufruct in respect of grazing by means of prescription. 4 Mpho has obtained a praedial servitude in respect of grazing by means of prescription. QUESTION 4 Which ONE of the following is NOT a requirement for the conclusion of a valid contract? 1 The contract must be permitted by law. 2 Each party to the contract must have capacity to act. 3 There must be consensus between the parties. 4 The contract must be in writing, signed and dated. 5 It must be physically possible to perform in terms of the contract. QUESTION 5 Mr and Mrs Party invite 250 guests to the wedding reception of their daughter. They agree with Good Food Caterers that the cost of the reception will be calculated at R100 per guest. For that reason Mr and Mrs Party state expressly on the wedding invitation that no children are invited to the reception. No less than 20 children attend the reception. Good Food Caterers charge Mr and Mrs Party extra for the 20 additional guests. Which ONE of the following statements is CORRECT? 1 Mr and Mrs Party may not claim the additional costs from the uninvited children, because, as minors, they are not liable for performance in terms of the contract, unless their parents or guardians ratify the contract. 2 Mr and Mrs Party may claim the additional costs from the parents or guardians of the children, because by bringing extra children to the reception contrary to the express statement in the offer (invitation) that children were not invited, they committed breach of contract. 3 Mr and Mrs Party may refuse to pay Good Food Caterers the additional amount for the uninvited children, since they made a mistake as to the number of guests who would attend the reception, and so did not agree to the additional expenses. 4 Mr and Mrs Party may not claim the additional costs from the parents or guardians of the (uninvited) children, since the invitation constitutes only a social arrangement and not a contract, and failure to abide by its conditions does not amount to breach of contract. QUESTION 6 Shaun studies B Com at Unisa. While writing an examination he sees a beautiful girl, Sandy, 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 the next Friday at 6 o'clock in front of Sterland. Shaun arrives at Sterland on the agreed time, but Sandy 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 Sandy for not honouring their appointment. Only later Shaun learns that Sandy's car broke down on her way to Sterland. Which ONE of the options provided below will complete the following sentence CORRECTLY? Shaun’s appointment with Sandy 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 Sandy to honour their appointment. 4 it was not juridically possible for Sandy to honour their appointment. QUESTION 7 Which ONE of the following could have an influence on a natural person’s legal capacity? 1 mental deficiency 2 being under the influence of alcohol or drugs 3 having been declared a prodigal by the High Court 4 all of the above 5 none of the above QUESTION 8 Taffy, a twelve year old boy, enters into an agreement with Roelf, in terms of which Taffy sells his computer to Roelf. Roelf pays Taffy R2 000 for the computer which he will collect at Taffy’s home during that same afternoon. Taffy uses the money to buy himself video games to the value of R1 000 and school uniforms for R400 to replace the ones he has outgrown. When Roelf arrives at Taffy’s home, Taffy refuses to give him the computer. Which ONE of the following statements is CORRECT? 1 Taffy is liable to Roelf for performance, because the contract is enforceable. 2 Taffy will not be liable to give up the video games to Roelf or repay him the R1 000 which the video games are worth. 3 Taffy is not liable to repay Roelf the R400 he spent on school uniforms, but his parents will be, because as his guardians they are responsible for payment of Taffy’s necessities and are enriched by this amount. 4 Taffy is not liable in terms of the contract. The contract is void because it was concluded without the assistance of Taffy’s parents. QUESTION 9 Which ONE of the following contracts IS NOT legally impossible in terms of the common law? 1 Anna lends money to Barry, for him to divorce from his wife and so that he can marry her. 2 Betty is angry because someone parked in her parking bay. She pays the car guard R10 to damage the wipers of the car. 3 Sam and Birgit are engaged. They include a clause in their antenuptial contract to the effect that Sam makes Birgit his heir. 4 Jeff and Joe decide to run a brothel and draw up an agreement on how they will divide the profits. QUESTION 10 Which ONE of the following contracts between Mr Fox and Mrs Angel will be legally possible to perform? 1 Mr Fox undertakes to have all Mrs Angel’s speeding tickets quashed in return for her husband’s rugby tickets for the season. 2 Mr Fox accepts a wager from Mrs Angel in terms of which he undertakes to pay her R20 000 if the horse Dream Catcher wins the Durban July Cup. 3 Mr Fox agrees with Mrs Angel to murder her husband, who is having an affair with Miss Small, his secretary, for R 10 000. 4 Mr Fox sells hundred square kilometres of ocean just off Mossel Bay to Mrs Angel for R500 000 to be registered in terms of title deed no T/ 456 in the Cape Town Deeds office. PART F QUESTION 1 In respect of which ONE of the following contracts does legislation NOT require any formalities? 1 contracts of lease for less than ten years 2 contracts for the alienation of land 3 contracts of suretyship 4 antenuptial contracts QUESTION 2 Neil and Kate have decided to start a retail business together. They have already discussed and reached agreement on the duties of each of them and the division of the profits. They decided that Kate would write down everything on which they reached agreement and supply each of them with a copy of the contract. However, just as Kate starts writing, Neil changes his mind about the contract and informs Kate that he no longer wants to be involved in the business. Which ONE of the following statements regarding the validity of the agreement between Neil and Kate is CORRECT? 1 A valid contract has come into existence and Neil is bound to it. 2 A valid contract has not yet come into existence and Neil is still entitled to withdraw. 3 A valid contract has not yet come into existence, but nevertheless Neil cannot withdraw at this stage. 4 A valid contract will not have been concluded if the intention of the parties was that they would only be bound by the written document, and not the oral agreement. parties will determine whether a valid contract has been concluded or not. QUESTION 3 Rudi and Charles agree that Rudi will transport five head of cattle to Brits for Charles, provided that Rudi can arrange to borrow Rian’s truck for two days. The proviso that Rudi must be able to borrow the truck for two days is known as a.... 1 modus. 2 resolutive time clause. 3 warranty. 4 suspensive condition. QUESTION 4 Lindiwe donates a large property in Johannesburg to the Care for Kids Foundation, a charitable organisation. In terms of the contract of donation the Care for Kids Foundation is obliged to erect a child care centre on the premises. The Care for Kids Foundation feels, however, that the property is better suited to the construction of a hospital for HIV/AIDS patients and proceeds with this. Which ONE of the following statements is CORRECT? 1 The Care for Kids Foundation has become the owner of the property and is free to use the property for any purpose. 2 The Care for Kids Foundation Charity has committed breach of contract because it has not complied with the modus. 3 The Care for Kids Foundation has committed breach of contract because it has not complied with the suspensive condition. 4 The Care for Kids Foundation has committed breach of contract because it has not complied with the supposition under which the donation was made. QUESTION 5 Which ONE of the following statements is CORRECT? The parol evidence rule... 1 operates in respect of evidence which aims to prove that a contract is void. 2 does not exclude evidence of agreements reached after conclusion of the written contract. 3 operates in the case of all contracts. 4 is also called the integration rule because both written and unwritten terms of the contract are integrated when the contract is interpreted. QUESTION 6 Penelope and Hugh conclude a written agreement for the sale of a three piece lounge suite. At a later stage Hugh discovers that he accidentally wrote “a four piece lounge suite”. Which ONE of the following statements is CORRECT? 1 Hugh will have to deliver a four piece suite because the mistake occurred as a result of his negligence. 2 Hugh will have to deliver a four piece suite because the parol evidence rule precludes him from relying on the intended agreement. 3 Hugh can apply for the rectification of the agreement. 4 The contract between the parties is void for uncertainty. QUESTION 7 Example 1 Roger agrees to repair Johan's truck. However, before Roger can do so, the truck is burnt out owing to an electrical short-circuit. Johan was not aware of any defect in the electrical system of the truck. Example 2 Thomas agrees to repair Ann's computer. On the day before Ann must deliver the computer to Thomas, Ann intentionally drops the computer for the purpose of claiming insurance on it. Which ONE of the options below best describes the relationship between these two examples? 1 Example 1 is an instance of prevention of performance by the creditor, and example 2 is an instance of initial impossibility of performance. 2 Example 2 is a case of repudiation and example 1 a case of negligence. 3 Example 1 is a case of supervening impossibility of performance, and example 2 is an instance of prevention of performance. 4 In example 1, Johan will be held liable because he was negligent in not having the electrical system repaired and, in example 2, Ann will be held liable for her intentional destruction of the computer. QUESTION 8 June works for Clare as a hairdresser. A restraint of trade agreement is included in their contract of employment. This agreement stipulates that June may not work for any rival business within a radius of five kilometres from Clare’s business, for a period of five years after she has left the employment of Clare. After working for Clare for three years, June resigns to take care of her family. After staying at home for the next two years, June is offered a job by Maria, also a hairdresser, in the same centre as Clare’s salon. June accepts the offer. Which ONE of the following statements is INCORRECT? 1 June committed breach contract when she accepted the offer from Maria, and Clare is entitled to a relief. 2 Clare can apply for a prohibitory interdict to stop June from working in contravention of their restraint of trade agreement. 3 Clare can apply for an interdict even if June was offered the job by Maria. 4 Clare cannot apply for an interdict because June stayed home for two years without earning a salary. QUESTION 9 Sam and Benny enter into a contract in terms of which Sam undertakes to supply and install certain equipment for refrigeration purposes in a fishing vessel owned by Benny. The equipment is guaranteed against defective workmanship and material for a period of twelve months. Three weeks after the installation of the equipment, the equipment malfunctions and cannot be repaired by Sam. Benny cancels the contract and tenders to return certain items supplied by Sam in their present condition. Benny is unable to tender the return of the balance of the materials, because these were lost at sea when the vessel sank during a storm. Which ONE of the following statements is CORRECT? 1 Benny is not entitled to cancel the contract and claim back the money that he paid for the equipment, because he is unable to return all the equipment to Sam. 2 Benny does not have to tender return of all the equipment before he can claim the money he paid to Sam, because it was not Benny's fault that part of the equipment was lost at sea. 3 Benny is entitled to cancel the contract and claim back part of the money that he paid for the equipment, in proportion to the part of the equipment that he is able to return. 4 Since restitution is still possible, Benny is not entitled to cancel the contract, but can only claim a reduction in the price of the equipment. QUESTION 10 Jabu buys a motor vehicle from Sharks General Motors on hire purchase. Jabu must pay the price and interest in instalments, over a period of 56 months. Jabu obtains a loan from Freedom Bank to finance the transaction. Freedom Bank pays Sharks General Motors the cash price of the vehicle and Sharks General Motors transfer their rights to the hire purchase agreement to Freedom Bank. Consequently Jabu must pay the purchase price, and interest, to Freedom Bank. Which ONE of the following legal instruments was implemented in the above set of facts? 1 delegation 2 settlement 3 cession 4 merger [Show More]

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