PVL3702 - Q & A-EXAM PACK.

Table of Contents STUDY UNIT 1: THE LAW OF CONTRACT ................................................................................... 4 1. Obligation: ................................................................................................................................. 4 2. Types of obligations ................................................................................................................. 4 3. Contract: .................................................................................................................................... 4 4. Types of agreements ............................................................................................................... 4 5. Distinguish between a contract and other obligations ........................................................ 4 6. List the requirements for the formation of a valid contract (5)........................................... 5 STUDY UNIT 2: BASIS OF A CONTRACT ...................................................................................... 5 1. What is the primary basis of contract in South African Law? ............................................ 6  Case law dealing with eth subjective Approach .............................................................. 6 2. Explain the theories of contract that have influenced the South African law of contract 7 STUDY UNIT 3: CORNERSTONES OF CONTRACT ................................................................... 8 1. Explain the concept of freedom of contract and sanctity of contract................................ 8 2. Discuss with the constitutional courts approach to the sanctity of a contract?............... 9  Barkhuizen v Napier 2007 (5) SA 323 (CC) ..................................................................... 9 STUDY UNIT 4: THE CONSUMER PROTECTION ACT ............................................................ 10 1. Discuss the Impact of the CPA ............................................................................................ 10 STUDY UNIT 5: THE IMPACT OF THE CONSTITUTION .......................................................... 11 1. Explain the effect of the constitution of RSA on contract law.......................................... 11  PACTA SUNT SERVANDA .............................................................................................. 11 FAIRNESS: BREDNKAMP CASE ........................................................................................... 12 STUDY UNIT 6 and 7: OFFER AND ACCEPTANCE................................................................... 13 Case law .......................................................................................................................................... 13 1. CRAWLEY REX ................................................................................................................. 13 2. Carlill v. Carbolic Smoke Ball Co. [1893] Q.B. 256 (C.A.). .......................................... 13 3. Bloom v The American Swiss Watch Company ............................................................ 14 1. List the requirements of a valid offer ................................................................................... 14 2. State the ways an offer may be terminated. ...................................................................... 14 3. PROBLEM TYPES QUESTION: OFFER AND ACCEPTANCE ..................................... 15 4. Problem type question: Expedition theory: Cape Explosive Works case ...................... 16 STUDY UNIT 8: PACTA DE CONTRAHENDO: OPTIONS & RIGHTS OF PREFERENCE . 17 1. Discuss and distinguish between an option and a right of pre-emption. ....................... 17 PVL3702 - Q & A-EXAM PACK. 2. Must the option meet the requirements of the main contract?........................................ 18 STUDY UNIT 10: ABSENCE OF CONSENSUS ........................................................................... 20 1. Refer to George v Fairmead (Pty) Ltd, Sonap Petroleum (SA) Ltd (SA) (Pty) Ltd v Pappadogianis, and other relevant case law in your answer .................................................. 20 STUDY UNIT 12: MISREPRESENTATION ................................................................................... 24 1. State the requirements for restitutio in integrum. .............................................................. 24 2. Refer to ‘Trotman v Edwick’ and ‘Phame v Paizes’. (10)................................................ 24 STUDY UNIT 13: DURESS .............................................................................................................. 27 1. State the requirements for duress as set out in “Broodryk v Smuts”. (5)...................... 27 2. Problem type question ....................................................................................................... 27 (A) On what basis will Sipho be able to attack the contract? Briefly discuss with reference to the court’s requirements or elements of the cause of action in question. (5) 27 (B) Peter’s defence against Sipho’s action for rescission of the contract is that he, in fact, acted lawfully. Will Sipho be successful with an action for rescission of the contract in the circumstances? Substantiate. (4).................................................................................. 28 (C) Will Sipho successfully be able to claim damages from Peter in the circumstances? Discuss. (1) ................................................................................................................................. 28 UNDUE INFLUENCE 14: UNDUE INFLUENCE ........................................................................... 29 1. State the requirements for undue influence. (3)............................................................... 29 2. PROBLEM TYPE QUESTION .............................................................................................. 29 STUDY UNIT 15: COMMERCIAL BRIBERY ................................................................................. 30 1. State the elements for commercial bribery as held in Extel Industrial (Pty) Ltd v Crown Mills (Pty) Ltd. ................................................................................................................................. 30 STUDY UNIT 17 and 18 : LEGALITY: ILLEGAL CONTRACTS THAT ARE VOID. ................ 30 1. JAJBHAY V CASSIM AND OTHER RELEVANT CASE LAW. [15] ................................ 30 2. State the test to determine if a restraint of trade clause is enforceable (Basson test). 31 STUDY UNIT 19: FORMALITIES .................................................................................................... 32 1. formalities ................................................................................................................................ 32 2. Discuss X’s position with reference to Sa Sentrale Kooperatiewe Graanmaatskappy Bpk v Shifren. .................................................................................................................................. 33 STUDY UNIT 20: POSSIBILITY ...................................................................................................... 34 1. Distinguish between initial impossibility of performance, supervening impossibility of performance, and prevention of performance. .......................................................................... 34 STUDY UNIT 23: TERMS ................................................................................................................. 34 1. Distinguish briefly between Essentialia, Naturalia and Incidentalia of a contract and give examples of each. .................................................................................................................. 35 2. Discuss fully with reference to “Minister van Landbou v Scholtz”. Don’t discuss the Aedilitian remedies for the latent defects. .................................................................................. 35 3. Ticket cases ............................................................................................................................ 36 STUDY UNIT 24: INTERPRETATION ............................................................................................ 37 1. Explain briefly what you understand by the Parol Evidence Rule. (6)........................... 37 STUDY UNIT 25-39: BREACH AND REMEDIES FOR BREACH .............................................. 38 1. List the five forms of breach of contract .............................................................................. 38 2. Problem type question on Mora ........................................................................................... 38 3. Positive malperformance: BK tooling ...................................................................................... 39 4. Damages ..................................................................................................................................... 40 STUDY UNIT 1: THE LAW OF CONTRACT You need to be able to define the following concepts 1. Obligation: An obligation is a juristic bond in terms of which the party or parties on the 1 side have a right to performance & the party or parties on the other side have a duty to render that performance. In other words it’s a legal relationship between 2 or more Legal Subjects. 2. Types of obligations  Civil obligation is an enforceable agreement can be enforced in a court of law.  Natural obligation does have some legal effect: it’s a legal relationship as opposed to a moral relationship. 3. Contract: A contract is an agreement entered into with the intention of creating an obligation or obligations. A contract is therefore a fact, an event. 4. Types of agreements  Agreements creating obligations [ general agreements ] : agreements of this nature are nothing but contracts.  Agreements extinguishing a debt : terminates the obligation .e.g. release from a debt  Real agreements: is an agreement whereby a right is transferred. E.g. when you buy a house  Gentleman’s agreements’: are not enforceable because there is no animus contrhendi they are binding in honour only. 5. Distinguish between a contract and other obligations 6. List the requirements for the formation of a valid contract (5) 1. There must be agreement (consensus) or ostensible agreement between the parties. 2. The parties must have capacity to act. 3. The performance must be possible at the time the contract was entered into. 4. The conclusion of the contract, the performance & the object of the contracting parties must be lawful (contract must in other words be legal). 5. Constitutive formalities must be complied with. 6. The contents or consequences of a contract must be ascertained or be readily ascertainable, there must in other words be, certainty as to the obligations to be created by the contract. STUDY UNIT 2: BASIS OF A CONTRACT