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Solve case scenario below and answer the questions that follow:

Mr David is the Manager of Real Estate for the local municipality. He is responsible for the purchase and sale of land on behalf of the municipality. Adjucent to an undeveloped parcel of municipality land are several smaller parcels of land owned by private individuals. The smaller parcels of land are undeveloped, overgrown and neglected.

Scenario (a)

A developer wishes to purchase the land - both the municipal and smaller parcels of land and offers R4 500 000 as a purchase price. The developer believes that all the land is owned by the municipality. Mr David believes the developer is purchasing only the parcel owned by the municipality and accepts the offer, thereby conclusing the contract.

Scenario (b)

Mr David sees the opportunity to make some money & enters into a contract with the developer & sells the municipal land & smaller parcels for the sum of R4 500 000, well knowing that the municipality doesn't own the smaller parcels of land & knowing that the developer is under the belief that the municipality owns all the parcels of land. Before transfer of ownership is registered, the developer who has, inter lia, already spent the following :

R200 000,00 on lodging to consolidate the various parcels of land into one parcel for the development of housing.

R100 000,00 on architectural plans for the housing development

You are approached by the municipality to provide advice as to the status of the contract in scenario (a) and scenario (b). Identify what remedies will be available to the developer. Explain your answer fully, with reference to the relevant law (25marks ).