1 Owen and Emma conclude a contract of sale in terms of which Owen sells a motor vehicle to Emma for R60 000. Emma pays the purchase price and Owen delivers the motor vehicle to her on the very same day.

a) Suppose Emma's uncle, a mechanic, does a routine service the day after Emma receives the vehicle, and discovers that there is something wrong with the radiator. Owen was unaware of the defect at the time of the sale and, even though Emma inspected the vehicle before purchasing it, did not discover the defect. The parties did not exclude the warranty against latent defects in their contract of sale. Which actions could be instituted by Emma under these circumstances and what can she claim?(6 marks)

b) A week later, the police inform Emma that the motor vehicle was a stolen vehicle and that the true owner was in fact Humphrey. Owen was not aware that the motor vehicle was a stolen vehicle when he received it as a gift from his brother. Was a valid contract of sale in fact concluded between Owen and Emma? Explain.(4 marks)

c) What are Emma's remedies under the circumstances outlines in b) above and what action should she utilise to institute her claims?(6 marks)