22 ASSIGNMENT 2 Unique number: 530786 Submission date: 21 September 2020 QUESTION 1After 12 years in a business partnership, which sells tyres, Timothy wants to terminate Timothy and Polly's business partnership. Since Timothy's business partner, Polly, will be entitled to half the assets of the partnership at the time of the termination, he concludes a contract with a professional killer, Mr Assassin, in terms of which he will pay Mr Assassin the amount of R10 000 to kill Polly. The next day Polly 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 Timothy 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 Polly must be killed by Mr Assassin, not die of natural causes. (2) QUESTION 2Marcel is very excited. He has just heard that he has won a new jeep. He phones Ryan and tells him the good news. Marcel offers to give his old jeep to Ryan, who gladly accepts the offer. They agree that Marcel will deliver the old jeep to Ryan once he has received his new jeep. Which ONE of the following statements regarding the validity of the agreement between Marcel and Ryan is CORRECT? 1 A valid contract has been concluded. 2 The agreement between them is not a contract, because no price has been specified. 3 A valid contract will only arise once Marcel has received his new jeep. 4 The agreement is void, because it is not contained in a written document. (2) QUESTION 3 Tumi owes Peter R20 000 and he asks Rafa to stand surety for his debt. Rafa asks for your advice. He says he is not certain whether: A if the suretyship contract is in writing, he is the only person who can sign it B the suretyship contract must be in writing C the suretyship contract can be concluded orally or in writingD the surety or his agent can sign the suretyship contract CLA1501/101/3/2020 23 Advise Rafa on which of the above statements are CORRECT? 1 only A and C 2 only A and B 3 only B and D 4 only C and D (2) QUESTION 4 Choose ONE word from the options provided below to complete the following sentence CORRECTLY."............ are terms which the law attaches to every contract of a particular class." 1 Essentialia2 Naturalia3 Incidentalia 4 None of the above (2) QUESTION 5 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. (2) QUESTION 6Charlie and Melby conclude a contract of sale in terms of which Plot 200 is sold to Melby for R200 000. Charlie's secretary types the written agreement the following day and erroneously indicates the price as R20 000. Charlie and Melby sign the agreement without checking it. Which ONE of the following statements is CORRECT? 1 Because the agreement is in writing, the parol evidence rule will exclude evidence regarding an oral agreement concluded prior to the written agreement. 2 Because oral contracts of sale for the alienation of land are not valid, the parties will be bound to the price of R20 000. 3 Thewrittencontract is void because of mistake. Evidence of the oral contract will be admissible in terms of the general principles involved in the interpretation of contracts.4 The writtencontract may be rectified. The parol evidence rule will not exclude evidence of the parties' true intention, where the written contract does not reflect this. (2) 24 QUESTION 7Sarah and Cello conclude a written agreement for the sale of a three-piece cutlery set. At a later stage Cello discovers that he accidentally wrote "a four-piece cutlery set". Which ONE of the following statements is CORRECT? 1 Cello will have to deliver a four-piece cutlery set because the mistake occurred as a result of his negligence. 2 Cello will have to deliver a four-piece cutlery set because the parol evidence rule precludes him from relying on the intended agreement. 3 Cello can apply for the rectification of the agreement. 4 The contract between the parties is void for uncertainty. (2) QUESTION 8Themba and Kwena conclude a contract of sale for the property 25 Meerhof Gardens, which belongs to Kwena. Their contract stipulates that Themba must pay an amount of R50 000 as deposit on the purchase price within two days of Kwena's acceptance of the offer. The money must be paid into Kwena's bank account, and Kwena must provide Themba with the name of his bank, the account number and the branch code. Four days after Kwena has accepted Themba's offer, Kwena still has not provided the required information to Themba. Which ONE of the following statements is CORRECT? 1 Themba has committed breach of contract in the form of mora debitoris, as he has not paid the deposit. 2 Kwena has committed breach of contract in the form of mora creditoris, as he has neglected to give his co-operation to enable Themba to fulfil his obligation with regard to the deposit. 3 As Themba spent the R50 000 before he received the necessary information from Kwena, supervening impossibility of performance has occurred, and their contract is terminated. 4 Kwena is entitled to cancel the contract if he has given Themba notice of intention to cancel the contract and a reasonable time to comply with his obligation to pay the deposit. (2) QUESTION 9Which ONE of the following statements is CORRECT? 1 Repudiation is a form of breach of contract which always entitles the innocent party to cancel the contract. 2 Repudiation is a form of breach of contract which never entitles the innocent party to cancel the contract. 3 Although repudiation is a form of breach of contract, it does not necessarily entitle the innocent party to cancel the contract. 4 Repudiation is not a form of breach of contract. (2) CLA1501/101/3/2020 25 QUESTION 10 June works for Ananda 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 Ananda's business, for a period of five years after she has left the employment of Ananda. After working for Ananda 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 Jacksone complex as Ananda's salon. June accepts the offer. Which ONE of the following statements is INCORRECT? 1 June committed breach of contract when she accepted the offer from Maria, and Ananda is entitled to a relief. 2 Ananda can apply for a prohibitory interdict to stop June from working in contravention of their restraint of trade agreement. 3 Ananda can apply for an interdict even if June was offered the job by Maria. 4 Ananda cannot apply for an interdict because June stayed home for two years without earning a salary.