Read the scenario below and answer the questions that follow. South Africa has experienced an increased amount of loadshedding in the past year, which has resulted in high levels of frustration especially for business owners. Coffee Brew King is owned by Jackson. Jackson has been losing a significant amount of business due to the constant electricity interruptions. His coffee shop is well known for the free Wi-Fi and gourmet coffees. Jackson wishes to mitigate the problem by installing a high-powered generator which would allow his business to function at optimal capacity. He sources PowerTools Inc, a company operating within Cape Town to assist him with the process. PowerTools Inc is owned by 16 year old Jared Naidoo. Jared's father Malcom passed away 3 years ago and has given the entire business to Jared. Jared currently resides with his mother. Answer ALL the questions in this section. QUESTION ONE Jackson seeks your advice as he wishes to ensure that the contractual relationship between both parties are sound in law. 1.1 You are required to fully advise Jackson as to what constitutes a valid contract in law. In your discussion (16 Marks) you must also provide practical examples for each element which you have listed. 1.2 Can Jared contract in law? Discuss fully. (4 Marks) QUESTION TWO (20 Marks) Jackson has decided that he will invite guests and possible investors to a 'Caviar and Coffee' themed night which will be hosted at his shop. He engages the services of Magical C' Foods to cater the caviar for the event. Jackson is anxious because he needs to ensure that the investors he invites are impressed by his shop. Three days before the event, the manager of Magical C' Foods alerts Jackson that there is no stock of caviar in the surrounding areas, and her suppliers are out of stock due to the fact that there is e-coli in the fishing area which they sometimes source their caviar from. Jackson is furious as he does not have an alternative appetizer for the event. Jackson decides to cancel his event based on the unexpected shortcomings. He subsequently informs Magical C' Foods that he will be instituting legal action against them. The manager of Magical C' Foods states that it was impossible to perform their obligations as the shortcoming was extraordinary in nature. You are required to provide legal advice to Jackson on his problem. You are expected to outline the relevant law, cite applicable case law, and provide a legal opinion on the above problem. QUESTION TWO (20 Marks) Jackson has decided that he will invite guests and possible investors to a 'Caviar and Coffee' themed night which will be hosted at his shop. He engages the services of Magical C' Foods to cater the caviar for the event. Jackson is anxious because he needs to ensure that the investors he invites are impressed by his shop. Three days before the event, the manager of Magical C' Foods alerts Jackson that there is no stock of caviar in the surrounding areas, and her suppliers are out of stock due to the fact that there is e-coli in the fishing area which they sometimes source their caviar from. Jackson is furious as he does not have an alternative appetizer for the event. Jackson decides to cancel his event based on the unexpected shortcomings. He subsequently informs Magical C' Foods that he will be instituting legal action against them. The manager of Magical C' Foods states that it was impossible to perform their obligations as the shortcoming was extraordinary in nature. You are required to provide legal advice to Jackson on his problem. You are expected to outline the relevant law, cite applicable case law, and provide a legal opinion on the above problem. QUESTION THREE Jackson has been struggling financially and decides to lease a portion of his premises to Lacy who owns a bubble tea shop. Lacy is satisfied with the premises and signs the lease agreement. Three months into the lease agreement, Jackson notices that Lacy has employed a nail technician who offers nail services in the shop. Lacy has installed a plug point and a small table at the corner of the bubble tea shop. Jackson approaches Lacy about his observation, and she states that she is not in breach of her lease agreement as she is only using the premises which she has leased and nothing more. She further notes that she has done Jackson a favour by installing a plug point as the shop only had one plug point initially. Jackson is angry, as the plug point installation has created visible damage to the walls, and there are wires which are not safely secured. 3.1 Distinguish between the various duties of both the lessee and lessor. You are required to provide a practical example for each duty listed. 3.2 Jackson is unsettled about Lacy's new business venture in the leased premises. Advise Jackson fully regarding the legal stance on the above scenario. You must refer to case law in your discussion. QUESTION FOUR There has been a copious amount of criminal activity in the area which has in turn created panic for many shop owners. Jackson has decided that he needs to insure his business premises immediately. 4.1 Advise Jackson as to the various types of insurance which are available, and which type of insurance would be most suited to his needs. Jackson approaches an insurance company to indemnify his business. The insurance company requests that Jackson declare that he has all certification regarding the installation of gas cylinders, stoves and all electrical equipment in his shop. Jackson knows that he has not contracted certified gas installers, and has rather cut costs by doing the installation himself. He nonetheless states that he is in possession of the certificates. 4.2 You are required to evaluate the above scenario and discuss Jackson's actions in terms of the legal duties and implications which an insured bears upon taking out insurance. You are also required to cite the applicable case law. QUESTION FIVE Selena works at Jackson 's coffee shop as a singer. She performs every day from 5pm until 7pm. Selena also received a uniform with Jackson's shop information to wear during her performance. Selena was given a contract from Jackson for a period of 2 years, and she is often invited to join staff parties and social events which are hosted by Jackson. Selena submits invoices and charges VAT as she belongs to a closed corporation which has two (2) other people in it. 5.1 You are required to list the differences between an employee and an independent contractor. (6 Marks) 5.2 Based on the set of facts above determine as to whether Selena is an employee or an independent (15 Marks) contractor. Justify your answer fully. You are required to cite the applicable case law. (9 Marks)