QUESTION 5

On 8 October, Siphiwe sold Mark his mobile hotdog stand for R20 000. They agree that Mark will pay Siphiwe on 10 October. Mark pays Siphiwe on 10 October. They further agree that Siphiwe will deliver the mobile hotdog stand to Mark on 20 October when he returns from Kenya. Mark fails to return from Kenya on 20 October. Siphiwe is unable to effect delivery on 20 October because he did not find Mark as agreed. Discuss the legal position between the parties and whether there is any breach of contract. [6]

QUESTION 6

You have booked a week's holiday to walk the Otter trail in the Western Cape. You made this booking eight months in advance, as you know how difficult it is to secure a booking on this route. You have paid your fee in full. A week before your departure date, you are hospitalised because of a viral infection. The agency through whom you made the booking charges you a substantial cancellation fee.

6.1 Did the agency act correctly in terms of the Consumer Protection Act 68 of 2008? Motivate your answer. (2)

6.2 Would your answer in (6.1) be different if you cancelled the booking because your partner decided to make another hiking trail on a game farm instead? In your answer, highlight factors considered when charging a cancellation fee. (5) [7]

QUESTION 7

7.1 Sifiso decides to buy a sound system from a retailer. Sifiso does not have the total purchase price, and he agrees with the retailer that he will pay the sound system off in periodic instalments. The retailer further agrees to keep the sound system for Sifiso until he has paid the entire purchase price. After Sifiso has paid the total purchase price, the retailer informs Sifiso that they have sold the sound system to another person. Discuss Sifiso's rights as a consumer in terms of the Consumer Protection Act. (7)

7.2 Solly bought a Toyota Avanza that he uses as a family car. He eventually lent his car to his brother (Tshepo), who lives in another province. Solly asks Tshepo to ensure that the car is insured at all times. Tshepo approaches ABC insurance in order to get insurance for the car. Confidential Page 8 of 8 CLA1503 OCT/NOV

7.2.1 Which essentialia of the insurance contract will have to be satisfied for Tshepo to get insurance on a car he does not own? Motivate your answer (2)

7.2.2 What form of insurance would be applicable to the above scenario? (2) [11]

QUESTION 8

Michael bought a thoroughbred racehorse from Clive with no other intention to breed with the horse. The contract of sale clearly stated that the horse was bought for breeding purposes. It later transpires that the horse was neutered (castrated), and Michael will not be able to breed with the horse. Clive was also not aware of the fact that the horse was neutered.

8.1 Explain if Michael has a claim (remedy) against Clive. (6)

8.2Would your answer in 8.1 differ if you apply the Consumer Protection Act? (3) [9]

QUESTION 9

Gugu authorised Elize (the agent) to buy an antique yellowwood cupboard for an upcoming antique festival for not more than R30 000. Elize's friend, Sylvia, has such a cupboard, and Elize buys it from her for R30 000 but gets a kickback of R10 000 from Sylvia. Gugu has now discovered the details of this transaction and wishes to know what legal action she can take.

Advise Gugu and motivate your answer. [5]