Question 1

Fill in the missing words in the paragraph below:

Persons to whom the law applies are known as legal subjects. There are two types of legal subjects; _____________________ and_____________________. The two types of legal rights are ___________rights and _____________rights. Ownership is an example of a ______________right. In terms of the ______________ doctrine, the decisions of our Courts become binding on the courts below. The reason for the Courts decision is known as the ___________________and is distinguishable from a remark made in passing which is referred to as ________________.

Question 2

Jane agrees to accompany Sipho to dinner and the movies on Friday night. However at the last minute Sipho agrees to go with Dave to watch a soccer match. Does Jane have valid grounds on which to sue Sipho for breach of contract? Explain.

Question 3

Seventeen year old widow Candice enters into a verbal contract with forty year old alcoholic Dave on Friday night while they are both sitting at the local bar to purchase his 2014 model Mercedes Benz C180 for R200 000.00. They agree that that Candice will pay the money on the following Monday to Dave at 17:00 in cash at which time he will give her the car.

Answer the following questions with reference to the above facts:

a. Discuss in detail whether or not the contact is valid based on the contractual capacity of the parties

b. On Sunday morning Dave receives an SMS from Candice reading "Just won a car, don't need yours anymore. Tks, C". Is this a valid cancellation of the contract? If not, explain what it is and what remedies would be available to Dave.

c. Discuss what the situation would be if the car was stolen out of Dave's locked garage on Sunday night.

Question 4

1. Sherry badly wants to sell her house because of rats living in her roof. She therefore plays music when Nadia comes to inspect the house and she assures Nadia that there is nothing wrong with the house. Nadia buys the house, which she would never of done had she known about the rats. a. What type of misrepresentation has taken place?

b. Advise Nadia of the remedies available to her when she discovers the rats.

Question 5

List the essential elements of a contract of sale.

6. When consent to an agreement is caused by coercion, fraud or misrepresentation, the

agreement is a contract ------------------------ whose consent was so caused.

1. valid

2. void ab initio

3. Legally enforceable

4. voidable at the option of the party.

7. A ------------------ is a contract to do or not to do something, if some event, collateral to

such contract, does or does not happen.

1. Contingent contract

2. Quasi Contract

3. Express of Implied Contract

4. Indemnity Contract

8. A person who finds goods belonging to another, and takes them into his custody, is

subject to the same responsibility as a

1. Bailor

2. Indemnifier

3. Bailee

4. Guarantor

9. If the parties to a contract agree to --------- a new contract for it, or to rescind or alter it,

the original contract, need not be performed.

3

1. Alter

2. Amend

3. Substitute

4. Modify

10. When an agreement is discovered to be void, or when a contract becomes void, any

person who has received any --------- under such agreement or contract is bound to restore

it, or to make compensation for it to the person from whom he received it.

1. Advantage

2. Benefit

3. Consideration

4. Favour