Business Law

Question 1: Identify whether the following contracts are valid, void or voidable and provide reasons for your answer.

The following will assist with answering the question:

Valid contract - fulfills all the requirements of a contract and is enforceable in a court of law

Void contract - is not a contract at all and has no legal effect in a court of law and cannot be enforced

Voidable contract -A contract which may appear to be valid and has all the requirements necessary to be enforceable BUT has some defect/s which could cause one or both parties to invalidate the contract. OR an agreement which is enforceable by law at the option of one or more of the parties.

Unenforceable contract - A contract which cannot be enforced in a court of law because of: contractual terms are not clear/ambiguous AND Statute of Limitations( requires lawsuits to be filed within a certain period of time following a breach). A contract is valid but unenforceable if no legal action can be brought on it. Although the contract does not impose legal obligations, it may impose a natural obligation.

QUESTIONS

Q 1.1.9 Chesney (16) purchases a motorcycle without his fathers knowledge. He then proceeds to drive the motorcycle to and from school and stores it in his fathers garage. His father notices the new motorcycle and does not say anything.

Q.1.1.10 Andiswa wakes up after a wild night out and vaguely remembers signing a contract for the purchase of a new pair of luxury sunglasses. She has the sunglasses in her possession, but she has no idea which company she contracted with or how much she is expected to pay over the coming weeks.

Q.1.1.11 Amandla purchases additional stock to sell after being threatened that her contract with ABC Sales will automatically terminate if she fails to do so.

Q.1.1.12 Mihlali (16) has a large following on Instagram and is often contacted by companies with offers of brand endorsement deals. Mihlalis guardian, Phile is proud of her and assists her with obtaining her own office to expand on her career as an influencer. Mihlali later enters into a deal with Ponds Beauty for the payment of R1 000 in exchange for her posting their product on her Instagram.

Q.1.1.13 Lelethu is in a longterm relationship with a man 30 years her senior. She is eager to please him as she is afraid he will leave her if she does not. As such, she does not hesitate to sell her Rolex watch to him at half the price when he requests that she do so.