Ms Arabiana Knight owns a number of racehorses which she keeps on her farm in the KwaZuluNatal midlands. She has just purchased a new pedigree racehorse. The horse is pitchblack with a distinctive white patch on its face (a blaze) and all four legs also have the same distinctive white colouring just above the hooves (socks). The horse is valued at R5 000 000. She named the horse Black Jet. Ms Knight has plans to visit her family overseas for a period of 6 months.

Ms Knight was looking for a new manager for her farm because her previous manager had relocated to the Cape. She was advised of a manager (Mr SmartAlec) who was desperately looking for a job. Ms Knight arranged for an interview with Mr SmartAlec, who had

an impressive curriculum vitae and had worked on many different farms. During the interview Mr SmartAlec was not very forthcoming regarding his last employment. Ms Knight did not do any background checks on him and hired him immediately due to her pressing need to go on holiday.

The day before Ms Knight left for her overseas trip she met with Mr SmartAlec and advised that he was now in charge of the farm and handed him the keys and access to all the documentation he might require. She stated that he must take care of everything as carefully as he would if it all belonged to him.

Ms Musthavit is a rival racehorse owner who owns one of the neighbouring farms. She did not know Ms Knight very well but had noticed that Ms Knight had not been around for a few months and so she went to Ms Knight's farm to snoop around. She noticed Mr SmartAlec on the farm with the horses and also immediately noticed Black Jet as he was clearly a winning horse and she was very keen to try and buy him. She spoke to Mr SmartAlec about Black Jet.

Ms Musthavit to Mr SmartAlec: "Wow! That is an amazing horse- he is a fine specimen of a racehorse."

Mr SmartAlec (noticing that Ms Musthavit was rather attractive and hoping that she would agree to go to dinner with him) to Ms Musthavit: "I have an eye for fine racehorses and I am in charge of Black Jet and all you can see." (He waved the bunch of keys to Ms Musthavit).

Ms Musthavit to Mr SmartAlec: "Well I must have him - you know I have always wanted such a fine horse. I will pay anything...how's R3 000 000.....perhaps we can celebrate over dinner tonight?"

Mr SmartAlec thought of his dream to settle in the Bahamas and pictures of the good life in the Bahamas flashed before his eyes. He immediately agreed. Ms Musthavit then arranged for Black Jet to be transported immediately to her farm and within the hour had transferred R3 000 000 into Mr SmartAlec's bank account.

After her holiday Ms Knight returned home and found that Mr SmartAlec had left the farm and had left the country. She did a visit around the farm and found that Jet Black was not in his stable. She was distraught. A few weeks later, she attended the local horse race. There she spotted Black Jet. She made a few enquiries and was told that the owner is Ms Musthavit. Ms Knight immediately informed Ms Musthavit that Black Jet was hers and demanded him back. Ms Musthavit refused to hand him over. She claimed that she had bought Black Jet from Mr SmartAlec and so Black Jet was hers. She also said that if she was forced to hand Black Jet back to Ms Knight, she wanted to be paid R3 000 000 plus interest as compensation for her financial loss.

a) Ms Knight wants to bring the rei vindicatio against Ms Musthavit. Advise Ms Knight of the requirements for the rei vindicatio. (25 marks)

b) Advise Ms Musthavit of all the defences available against the rei vindicatio and which of these defences might succeed. Do not discuss estoppel in this question. (15 marks)

c) Advise Ms Musthavit of the limitation of estoppel as well as her chances of success against Ms Knight if she raises estoppel.

(30 marks)

END OF ASSIGNMENT