Answer all the following questions.

Question 1 (20 marks)

Read the following scenario and answer the question that follows:

'Within community of property' marriages

On 10 January 2020, Mr M married Mrs M in community of property. On 31 March 2021, his wife institutes divorce proceedings against him. Mrs M subsequently requests her attorneys to draft a settlement agreement dissolving their joint estate.

The settlement agreement provides that Mrs M will acquire all the assets of the joint estate and Mr M will not obtain any assets from the joint estate. However, Mr M will be liable for all debts during the course of their marriage.

On 21 April 2021, Mrs M invites Mr M to their house, to sign the settlement agreement. Upon Mr M's arrival at their home, Mrs M puts a gun to Mr M's head and tells him to sign the settlement agreement. Mr M fears for his life and signs the settlement agreement.

Mr M approaches you, his lawyer, as he wants to understand the validity of the settlement agreement.

Required:

Advise Mr M on the validity of the settlement agreement and whether it is binding on him. Substantiate your answer, by referring to the relevant case law.

Question 2 (10 marks)

Read the following scenario and answer the question that follows:

Broken car windows

Ms A buys a car from Mr J for an amount of R80 000.00. On 5 January 2020, they sign a contract of sale and agree that the car will be delivered in good condition.

On 2 February 2020, Mr J delivers the car to Ms A, but all the windows are broken.

Ms A takes possession of the car and makes a payment of R60 000.00 to Mr J. Mr J approaches Ms A to make a payment for the outstanding amount of R20 000.00.

Required:

Comprehensively discuss whether Ms A should make the full payment to Mr J, as agreed upon on 5 January 2020. Provide adequate reasons for your answer.

Question 3 (20 marks)

Read the following scenario and answer the question that follows:

Gazebo erection payment

Ms T leases a house to Mr F. Three months into the lease term, Mr F decides that he wants to erect a gazebo in the garden. Without letting Ms T know of his intentions, as far as the gazebo is concerned, Mr F contracts a subcontractor to design and erect the gazebo.

On completion of the job, the subcontractor presents Mr F with an invoice, for services rendered, to the amount of R28 000.00. Mr F indicates that he is not the owner of the property and that the subcontractor should address the invoice directly to Ms T.

Required:

Discuss the legal position pertaining to these facts in full, paying particular attention to the liability of Ms T and/or Mr F to make payment to the subcontractor. Substantiate your answer, by referring to relevant case law.

Question 4 (20 marks)

Read the following scenario and answer the question that follows:

Benefits under common law

Mr Z makes an application to C Bank ("the Bank") for a personal loan. Owing to the fact that Mr Z is not an existing client of the Bank, and that the Bank is unsure of Mr Z's creditworthiness, Mr Z requests his sister, Ms P, who is an attorney, to stand surety for him in relation to the loan.

The Bank approves the loan on the basis of Ms P's surety and the agreements (i.e. the loan agreement and the suretyship agreement) are drawn up by the Bank's in-house legal counsel.

When the time comes for Ms P to sign the suretyship agreement, she notices a clause of the agreement that provides the following:

"The surety hereby waives all benefits available to her under the common law and confirms that she understands the nature and purport of such waiver."

Being an attorney, Ms P is very unhappy with this clause and demands that it is removed from the agreement, before she signs it.

Required:

Assume that the Bank agrees to Ms P's demand and deletes the clause from the suretyship agreement, and that Ms P, eventually, signs the agreement.

On 31 October 2020, one day after the instalment under the loan agreement became due and payable to the Bank by Mr Z, the Bank sends one of its employees around to Ms P's workplace, to demand payment for the relevant instalment by Ms P herself, in terms of the suretyship agreement.

Discuss Ms P's legal position under these circumstances. In your answer, discuss how the suretyship agreement between the Bank and Ms P may be terminated.