Thandi agrees to lease out her Camps Bay apartment, in which she previously lived, to Vanessa for R20 000 per month rental.

They agree to a two year lease starting on 1 July 2015.

1. Vanessa opens a beauty salon in the flat which causes the neighbours to complain to Thandi because of the noise.

When Thandi speaks to Vanessa she tells Thandi that as long as she is paying the rent on time she can do what she likes.

Advise Thandi.

2. Vanessa pays her rent on time every month until December when she does not pay on the 1st as agreed. Thandi wanted the money for Christmas so she comes to you for advise as she has another tenant ready to pay and move in and her brother has offered to evict Vanessa. Is Thandi entitled to cancel the lease and evict Vanessa?

3.Three months into the lease Thandi sells the apartment to Dave who wants to move in himself. He sends a notice to Vanessa on 1 September advising that he is the new owner and cancelling the lease with effect from 30 September.

Advise Vanessa of her rights.

4.Kobus wants to buy the tyre fitment centre owned by his arch-rival Jaco. He is convinced that Jaco would never sell to him out of spite so he appoints Gawie as his agent with the specific instruction that Gawie must not disclose to Jaco that he is acting as an agent.

Gawie successfully negotiates a purchase agreement and then drops the bombshell on Jaco that he was in fact acting as Kobus's agent.

5. What is this type of arrangement called?

6. Jaco comes to you for advise. What would you tell him?

7. List three ways that agency may be terminated.

8. Explain the difference between a Special and a General Power of Attorney

9. Briefly explain the difference between indemnity and non-indemnity insurance.

10.John meets Sally in a bar one night. She tells him that she is a professional stunt pilot.

11. John thinks it may be a good investment to take out a R5 million policy on her life. May he do this?

Explain why or why not.

12. Sally decides to take out insurance on her aeroplane. The policy application form does not ask what she uses the plane for. Three months later the plane is damaged in an accident while she is performing a stunt.

The insurer refuses to pay because the plane P a g e | 8 DC/Mancosa/RFG/WB0815 was involved in a stunt at the time of the accident.

Discuss whether the insurer was entitled to refuse to pay Sally's claim.

13."The common law position in respect of suretyship is that the creditor must first proceed against the debtor unless the surety waives their right in this regard".

In light of the above discuss the benefit of excussion and the instances when this defence may not be available