Question 4 lMarks: 35] Claire sells a piece of land to Dianne for R500 000. Both parties agree that the price is to be paid by way ofa deposit of R100 000 within seven days of signing the contract, and the balance of R400 000 on registration of transfer of the property into Dianne's name. Dianne is required to lodge a bank guarantee for payment of the balance before Claire can be called upon to give transfer. No date for lodgement of the guarantee or for transfer of the property is agreed upon. Dianne pays the deposit within the stipulated time period and informs Claire that it might take up to one month for the lodgement ofthe guarantee to take place. To Dianne's delight, the lodgement takes place within a week and the balance is ready to be transferred to Claire. Claire, however, delays the transfer, and later admits that she does not wish to go through with the transfer, withdrawing from the contract. {1.4. 1 {1.4.2 {1.4.3 Identify the type of formalities required by the above transaction and justify your answer. Imagine that, while waiting for the bank guarantee to pay out (before the property has been transferred in the Deeds office], the piece of land, together with the house on it, burns down as a result ofa bushfire. Dianne indicates that she no longer wants to sale to continue as she will then bear the loss. Advise Dianne whether the passing of risk has occurred or not, even although the property has not yet been transferred. Justify your answer. Identify and explain the type of breach that has occurred. In your answer, discuss the test used to establish whether certain behaviour constitutes this type of breach of contract. Substantiate your answer with reference to the facts. (3} l4} l5} {1.4.4 Imagine that the bank guarantee for the balance of the purchase price is ready to be paid out to Claire. However, every time the conveyancing attorneys attempt to contact Claire for her to sign the transfer documents, she is uncontactable, although when they are able to get hold of her she insists that she wishes to go ahead with the sale. Five months have passed and the attorneys have still not