Read the case study below and answer the questions that follow. The law of contract acts as a golden thread throughout all elements concerned with daily business transactions. Agreements are constantly being entered into for various purposes. A contract is binding in law and each party must deliver and perform according to their obligations as mutually agreed upon in the contract. Hydroshiny Inc is owned by siblings Leon and Kate. The business is based in Durban. Leon manages the company's financial elements, and his sister Kate manages the procurement aspects. The business currently employs one (1) hairdresser. The business also offers a mobile hair and nail salon. Kate wishes to improve the profit margin, as it has been extremely difficult for the business post-COVID-19. Kate has researched and heard about a new innovative hair styling tool with multiple functions. Kate is certain that this will attract new customers to their salon. She pitches the idea to Leon and they both agree to source the hair styling tool and sell it to their customers.

Question 2 (25 Marks) Kate regularly purchases items for the salon from online sites. She sees an advert for a sound system, which she believes would be a great addition to the salon. She contacts the seller and requests to view the item. The seller agrees, and tells Kate that the sound system is sold as is. Kate purchases the sound system for R2 500.00. She then takes the sound system back to the salon. She attempts to connect her USB in the designated port, however, she notices that there is rust around the port. She emails the seller and he blatantly responds on email that it is not his problem anymore, and that the USB port has not been working for many years. The sound system cannot operate without a USB. Kate wishes to understand her remedies in law for the sale of defective items. 2.1 You must fully discuss the TWO (2) remedies, which specifically relate to latent defects. (20 Marks) V Pieterse, Aretha, Mohammed, Nompilo Jennifer, Manaledi, JM,Edwina, Athi 2.2 Determine which remedy would be best suited to Kates legal problem, and provide reasoning based on the facts above as to why this would be most applicable to Kate. (5 Marks)