QUESTION 1

Brutus decides to surprise his girlfriend and baby momma Zwivhuya with a brand new vehicle as a combined push gift and early valentine's gift. He phones Mercedes Mercurius Polokwane and requests an A45 AMG. He transfers 50% of the purchase price as deposit and informs the sales representative that he will finish the balance on Monday when comes to the collect the car. The dealership as per its custom wraps the car with a big ribbon and places a card with a congratulations message on the bonnet of the car. On Monday morning as Brutus pulls into the dealership a crazy gunman who identifies himself as CJ unloads a full magazine of his AK 47 into the showroom and damages most of the vehicles. After the commotion ended CJ was captured and arrested. The salesman then informed Brutus that his car was damaged but still insist on Brutus paying the remaining balance.

Fully discuss, whether Brutus is liable to pay for the damaged car (15)

QUESTION 2

Telo wants to buy a penthouse in an upcoming development in Cape Town. She approaches her bank for a mortgage bond. Thabz (the bank consultant) who is assisting her, finds her very attractive and is enchanted by her smile and the conversation that they are having as he assists her and fails to see that the system has flagged her name as being a potentially blacklisted client. Preoccupied with asking her out on a date on valentine's day he does not ask her if she understands the terms of loan as he is of the opinion that she is a literate person and must therefore fully understand. Six months down the line Telo begins to default on her payments.

Fully discuss the legality of this credit agreement (20)

Question 3

John vhuli gate is a first-year student at the University of Venda staying in a privately owned residence. He had never been unsupervised and away from home; consequently, he engages in marijuana and alcohol abuse due to the influence of his current girlfriend Zodwa. His lifestyle becomes so uncontrollable that he has even been lagging behind on his rentals. Frustrated with unanswered demands for payment, his landlord who owns a towing company tows the vehicle that john uses and has it secured at an undisclosed location. He informs him that he will only release the vehicle once John pays the R30 000 that he is owing him in rental arrears. John begins to panic as he will not have that kind of money by the time, he finishes his exams in February. He is even terrified of his strict parents who are pastors by profession as the car belongs to them.

He approaches you for advice on whether his landlord has acted lawfully as he is contemplating opening a case of theft. Fully advise him on the legality of the landlord's actions. (15)

[TOTAL 50]