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.1.1.1 Lilith is a car manufacturer who, since the COVIDpandemic, came upon hard times. She was subsequently placed under courtordered sequestration and Jabulani was appointed as her trustee. Lilith loves her job and decides to continue her work without Jabulanis knowledge in the belief that it will benefit the insolvent estate.

Q.1.1.2 Koos (19) opens up a savings account with 123 Bank.

Q.1.1.3 Xolani and Nathan, both of whom are 6 years old, enter into a contract on the school playground where Nathan agrees to sell his new cell phone to Xolani for R450.

Q.1.1.4 Carlos (16) grows out his beard and dresses in a suit and approaches 22 Motors for the purchase of a motorcycle without his mothers knowledge. 22 Motors sells him the motorcycle, assuming they are contracting with a 25year old man.

Q.1.1.5 Sesethu takes out a home loan and requests that her husband sign on as surety. He agrees and does so in writing and signs the surety agreement. Sesethu fails to attach her signature to the surety agreement.

Q.1.1.6 Aphiwe (16) is a divorcee and decides to purchase new furniture for her home without the consent of her parents.

Q.1.1.7 Mbali sells a small bag of cocaine to an unknown purchaser for R600.

Q.1.1.8 Elias and Farhanna are married in community of property. They both agree that their old lounge suite should be sold to purchase an updated version. While Farhanna is at work, Elias arranges for the sale and delivery of the old lounge suite to Cash Crusaders.