Question1

Marked out of 2.00

Which ONE of the following statements about avoetstootsclause isCORRECT?

a.

The inclusion of avoetstootsclause in a contract of sale implies that the article is sold brand new.

b.

The inclusion of avoetstootsclause in a contract of sale will make the contract invalid

c.

Avoetstootsclause is a clause in a contract used to exclude the warranty against latent defects

d.

Avoetstootsclause is the opposite of an "as is" clause and must not be included in a contract of sale

Question2

Marked out of 2.00

T sells R her old Washing machine for N$ 1000 on 1 November. They agree that delivery will take place on 3 November, because T must collect the washing machine from her cousin. T collects it on 2 November. She leaves the machine in her garden, from where it is stolen that night.

Which of the following statements is correct?

a.

R must bear the loss

b.

R must still pay the Purchase price to T , because she should have collected the washing machine from her.

c.

T must bear the loss

d.

No contract came into existence, because T is unable to deliver the Machine

Question3

Marked out of 2.00

Johan steals a car from Benny. He then sell it to Brian for N$.50 000 because it has engine problem. He does not disclose the problems to Brian. A month later. Benny claims the car from Brian. Brian is unhappy about Benny's claim and warns to claim the purchase price back from Johan.

On which ONE of the following grounds should Brian rely in order to succeed with the actio empti against Johan?

a.

Manufacturer's liability

b.

Misrepresentation

c.

Breach of warranty against eviction

d.

Defective performance

Question4

Marked out of 2.00

Which one of the following is correct?

a.

In a warranty against eviction the seller undertakes to preserve themerxuntil delivery to the purchaser.

b.

In a contract of sale the seller agrees to deliver themerxin exchange for the purchase price.

c.

Themerxis only definite or ascertainable if it is corporeal.

d.

The only remedy for a defect which is so material as to render themerxuseless or less useful for the purpose for which it was bought, is theactio redhibitoria.

Question5

Marked out of 2.00

Mary wants to buy 20 bags of flour from Namib Mills. Which one of the following will not qualify as an acceptable purchase price?

a.

An amount to be determined by Markus, a financial advisor.

b.

N$ 35 per bag of flour.

c.

N$ 4 000

d.

20 bags of flour

Question6

Marked out of 2.00

Mary borrows a Commercial Law 1B study guide from her boyfriend Peter.Mary use this study guide to prepare for her examination. After Mary has passed Commercial Law 1B with a distinction, she decides to sell the study guide to Mbambo for N$ 30.

Which ONE of the following statements is CORRECT?

a.

A valid contract of sale was concluded between Mary and Mbambo, and ownership passed to Mbambo

b.

A valid contract of sale was concluded between Mary and Mbambo, but ownership did not pass to Mbambo

c.

No valid contract of sale was concluded between Mary and Mbambo since Mary was not the owner of the study guide.

d.

Mbambo will be able to rely on the warranty against latent defects should Peter claim the study guide.

Question7

Marked out of 2.00

Which ONE of the following statements is correct?

a.

Movables are transferred by way of registration in the name of the purchaser at the deeds office.

b.

The risk of accidental damage to themerxpasses from the seller to the purchaser after the purchaser has become the owner.

c.

There is no valid contract of sale if the seller is already the owner of the thing

d.

A Purchaser who wants to institute a claim because of a latent defect in themerxmust only prove that he or she was unaware of the defect when the contract was concluded.

Question8

Marked out of 2.00

A and B enter into an agreement in terms of which B will use A's car for a period of two weeks. After a period of two weeks, B makes an offer to A to buy A's car. They agree on terms of payment and B buys the car.

Which one of the following forms ofdelivery has taken place?

a.

Delivery with the long hand

b.

Delivery with the short hand

c.

Symbolic delivery

d.

No deliverytook place

Question9

Marked out of 2.00

G buys a Mercedes G wagon from S for N$ 500 000 as a push gift for his girlfriend. One week later G is unable to get the car going and has to have the car towed to a service station. The towing costs N$ 1 500. They tell him the gear box has seized up. It appears the problem existed even before G bought the car from S, but S was unaware of this. According to the service Station the value of the defective car is now only N$ 450 000.

Which one of the following statements is correct?

a.

G may claim N$ 501 500 from S on returning the car to S

b.

G may claim N$ 500 000 from S on returning the car to S

c.

G may claim N$ 450 000 from S on returning the car to S

d.

G has no remedy because S did not know about the defect.

Question10

Marked out of 2.00

Consider the following statements:

A. J agrees to deliver his farm "Askiesbos" to P in exchange for P's farm.

B.J agrees to deliver his farm " Askiesbos" to P against the payment of N$ 5 million

C.J agrees to deliver a game farm of P's choice against payment of N$ 5 million.

D.J agrees to deliver his farm "Askiesbos" to P against payment of a price to be determined by the FNB Bank.

Indicate in which statements valid contracts of sale were concluded:

a.

A & C

b.

A & B

c.

B & D

d.

A & D

Question11

Marked out of 2.00

Phil is mandated by John to find and buy him a 2017 Ford Ranger WildTrak with low mileage. Phil gives the details to Mark, who then sells the car to Phil. What kind of sale took place between Phil and Mark?

a.

Sale by sample

b.

Sale in Execution

c.

Sale by description

d.

Sale or Return

Question12

Marked out of 2.00

Consider the following requirements

A. Agreement on purchase price.

B. Agreement regarding warranty against latent defects.

C. Agreement regarding themerx.

D. Agreement that themerxbe delivered.

E. Performance in terms of the contract must be lawful.

F. Parties must have contractual capacity.

Which of the above are the general requirements of a contract of sale?

a.

E & F

b.

All as listed

c.

C & D

d.

A & B

Question13

Marked out of 2.00

Flag question

Which of the following statements concerning the purchase price as a requirement for the conclusion of a sale contract is INCORRECT?

a.

Price can paid per unit or global sum

b.

Price must be set by the purchaser and the seller

c.

Price can be partly in money and partly in goods

d.

Price must be fixed or determinable

Question14

Marked out of 2.00

Which one below is not a remedy for a purchaser when a seller fails to deliver a thing purchased in a contract of sale?

a.

Cancellation

b.

None of the given options

c.

Actio quanti minoris

d.

Actio empti

Question15

Marked out of 2.00

ONE of the following is not a duty of the seller in a contract of sale?

a.

To accept when a thing is put at his or her disposal to exercise control over it

b.

To pay the purchase price

c.

To pay transfer duty as and when it is required

d.

To ensure that eviction never takes place

Question16

Marked out of 2.00

It is not necessary that the initial payment (deposit) must first be paid before the creditagreement will be valid

Select one:

True

False

Question17

Marked out of 2.00

The Credit Agreements Act 75 of 1980 applies to the sale or lease of any movable goods as as long as the agreement is concluded for 3 months or longer.

Select one:

True

False

Question18

Marked out of 2.00

For the Credit Agreement Act 75 of 1980 to apply the purchase price must be paid in installmentat any time in the future.

Select one:

True

False

Question19

Marked out of 2.00

If a thing is sold as spes (hope) that it will materialise in the future, the contract is not perfecta

Select one:

True

False

Question20

Marked out of 2.00

Ownership can pass through delivery of thing alone to the purchaser

Select one:

True

false

Question21

Marked out of 2.00

The requirement that there must bemerxmeans that there must be physical existence of the thing at the time of the conclusion of the contract.

Select one:

True

False

Question22

Marked out of 2.00

The duties of the purchaser are more important than that of the seller for the purpose of establishing the existence of a contract of sale

Select one:

True

False

Question23

Marked out of 2.00

Sometimes delivery can take place if the thing is just merely pointed to the purchaser by the seller

Select one:

True

False

Question24

Marked out of 2.00

The seller has a duty to guarantee the purchaser for latent defects.

Select one:

True

false