UESTION 1 (10 MARKS)

Identify the type of agent involved in the following instances. [ i.e. Estate Agent/ Auctioneer] NO MOTIVATION REQUIRED.

1.1.Papiso appoints John to sell and negotiate the purchase of a posh house from Peter.

1.2.Tom has been struggling for months to find a buyer for his farm with all the stockandimplementson it. Alan informs him that the easiest course to follow is to sell the farm and everything else at a public auction. Tom appoints Allan to conduct the sale.

1.3.Alma employed by XYZ Life Insurance Co (Pty) Ltd, concludes a life insurance policy with Smith on behalf of XYZ Insurance Co (Pty) Ltd.

1.4.Colin received a general power of attorney from Paul to act on Paul's behalf in his divorce case in the High court of Namibia.

1.5.Peter and Kativa represents ABC (Pty) Ltd as the organ of ABC (Pty) Ltd and signs a N$ 1 million contract with City of Windhoek to provide refuse collection services to the city.

Each correct answer is worth 2 marks

[10 marks]

QUESTION 2 (15 MARKS)

Mbathera trades in his old car on a new car at Special Wheels Motors. The parties agree that the price for the new vehicle is N$ 150 000 and they place a trade-in value of N$ 50 000 on the old car.Mbathera pays N$ 100 000 and drives away in his new car. Special Wheels Motors finds out later that the gear box of the old vehicle has to be repaired for N$ 10 000 and that Mbathera concealed the noise the broken gear box makes by putting some bananas in the gear box. The value of the old car is in fact not N$ 50 000, but N$ 40 000. Special Wheels Motors wants to know:

1)whether they concluded a valid contract of sale or an exchange and

2)whether it would be able to claim N$ 10 000 from Mbathera as a price reduction. Discuss fully.

QUESTION 3 (10 MARKS)

River Motors (Pty) Ltd is a dealer in vehicles from Japan. Brian buys a Nissan March under an instalment sale transaction in terms of the Credit Agreements Act 75 of 1980 (as amended) with River motors. Brian is required to pay 10% deposit of the vehicle's purchase price.

Explain the legal position in each of the following SEPARATE instances:

3.1.Brian fails to sign the agreement. (3)

3.2.Brian fails to pay the deposit.(2)

3.3.The agreement states that Brian will buy his new vehicle voetstoots. (3)

3.4.The effect of reference to section 13 of the Credit Agreements Act 75 of 1980. (2)

QUESTION 4 (10 MARKS)

4.1.Given that most aspects of the employment relationship (e.g. hours of work, sick leave, protectionagainst unfair dismissal etc.) are now regulated by the Labour Act 11 of 2007 is there any point to entering into a detailed written contract of employment?[2]

4.2.In what respects has the Labour Act 11 of 2007 limited the contractual freedom of employers and employees?[4 ]

4.3.Can a contract of employment be terminated other than by way of the dismissal of the employee, and, if so, in what circumstances?[4 ]

QUESTION 5 (5 MARKS)

Choose the correct answer from the given options in each of the following questions. Only write down the correct letter next to the corresponding question number (i.e. 5.1 (A)).

5.1Consider the following statements:

(1) J agrees to deliver his farm "Sweet Valley" to P in exchange for P's farm.

(2) J agrees to deliver his farm "Sweet Valley" to P against the payment of N$ 5 mil

(3) J agrees to deliver a game farm of P's choice against payment of N$ 5 mil.

(4) J agrees to deliver his farm "sweet Valley" to P against payment of a price to be determined by Standard Bank.

Indicate in which statements valid contracts of sale were concluded:

1. 1 & 2
2. 1 & 3
3. 1 & 4
4. 2 & 4

5.2.What does the term "voetstoots" mean?

1. An article is sold with a latent defect.
2. The article is sold "as is".
3. The contract of sale has a resolutive condition.
4. The article is as good as old as it is.

5.3.Which of the following breaches the duty of good faith in law of agency?

1. Secret profits and conflict of interest.
2. Secret profits and the doctrine of the undisclosed principal.
3. Secret profits and the incurring of liability of the principal.
4. When the agent does not account properly.

5.4.Which one of the following actions can the purchaser use if the merx has a defect which does notrender it completely useless?

1. Actio Quanti minoris
2. Actio redhibitoria
3. Rei vindicatio
4. Actio ex empti

5.5Whilst on his way to deliver bread at one of the local stores, Felix, the driver at B & B Bakery is involved in an accident. Alex's car is badly damaged as a result of the accident caused by Felix's negligent driving. Alex wants B & B Bakery to repair his car.

Consider the following statements regarding vicarious liability:

1.The employee must have acted in the course or scope of his or her duties.

2. The employee must not have been negligent in his duties.

3.The employer must have been promoting the business of his or her employee.

4. The employee must have been promoting the business of his or her employer.

Which of the above is/are NOT requirements for vicarious liability?

1. only 2
2. only 4
3. 2 and 3
4. 1 and 4