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LPL4801 - Law of Sale & Lease Exam Pack
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LPL4801 - Law of Sale & Lease Exam Pack
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MCQ1) TUT 2021 S1 A2 MCQ - A
QUESTION 1
X hired from Y certain premises for a period of two years for the purpose of conducting a ski
resort thereon in the Maluti mountains in the Eastern Cape. After three months, the pleasure
resort is completely destroyed in a heavy snow storm. Why is X entitled to stop paying the rent?
1 Because Y breaches the lease agreement.
2 Because structural changes to the leased premises form part of the lessor’s obligation,
and the lessor is obliged the rebuild the ski-resort.
3 Because Y fails to maintain the leased premises in the condition in which they were
when the contract was concluded.
4 Because X does not have use and enjoyment of the leased thing anymore.
5 Because the Rental Housing Act 50 of 1999 entitles X to do so. (1)
Feedback:
The correct answer is (4). As a naturalia of a lease agreement, the lessee is wholly released
from the obligation to pay the rent if he or she is prevented by vis maior or casus fortuitus from
having the full use and enjoyment of the thing. The snow storm would qualify as a vis maior as
it is a superior power of force that cannot be resisted or controlled (see Study Guide 1, study
unit 11, paragraph 11.1). Options 1 and 3 are incorrect as there is no breach of the lease
agreement by Y as Y did not fail to maintain the leased premises in a condition in which they
were when the contract was concluded (see Study Guide 1, study unit 8, paragraphs 8.2-8.3).
Option 2 is incorrect because a lessor is not required to make structural changes to the leased
premises, he is only obliged to repair structural defects (see Study Guide 1, study unit 8,
paragraph 8.2). Option 5 is incorrect because the legal position is governed by common law
principles (i.e. naturalia of the contract) and not by the Rental Housing Act 50 of 1999.
2) TUT 2021 S1 A2 MCQ - A
QUESTION 2
The rule involved in your answer to question 1 is an expression of a general contractual
principle applicable to all contracts and not only the contract of lease. What is this rule?
1 Positive malperformance.
2 Mora debitoris.
3 Supervening impossibility of performance.
4 Mora creditoris.
5 Repudiation.
Feedback:
The correct answer is (3). As the remission of rent is claimed after a vis maior, the general
contractual principle applicable is supervening impossibility of performance. All the other
options are examples of a breach of contract and therefore incorrect (see Study Guide 1, study
unit 12, paragraph 11.5
3) TUT 2021 S1 A2 MCQ - A
QUESTION 3
Which one of the following statements is CORRECT?
1 No formalities are required for the conclusion of a valid contract of lease unless
,prescribed by statute.
2 A long lease can be described as a lease which has been entered into for a period of
not less than five years.
3 The Rental Housing Act 50 of 1999 is aimed at the protection of lessors against
exploitation and victimisation by lessees.
4 The Formalities in respect of Leases of Land Act 18 of 1969 provides that a long lease
must be registered.
5 A lessee may be evicted whenever it suits the lessor. (1)
Feedback:
The correct answer is (1). In line with the general principles of the law of contract, no formalities
are required for the conclusion of a valid contract of lease unless prescribed (see Study
Guide 1, study unit 1, paragraph 1.2.3). Option 2 is incorrect because for a lease agreement to
qualify as a long lease is must be for more than 10 years (see Study Guide 1, study unit 10,
paragraph 10.2.1). Option 3 is incorrect because the Rental Housing Act 50 of 1999 is aimed at
the protection of lessees (i.e. tenants) and not lessors (i.e landlords) (see Study Guide 1, study
unit 19, paragraph 19.2.1). Option 4 is incorrect because the Formalities in respect of Leases of
Land Act 18 of 1969 does not require that a long lease must be registered but does require the
registration of a long lease to establish the lessee's real right against third parties (see Study
Guide 1, study unit 10, paragraph 10.2). Option 5 is incorrect because there are various legal
requirements that must be met before a lessor may evict a lessee (see Study Guide 1, study
unit 14, paragraph 14.7 as an example).
4) TUT 2021 S1 A2 MCQ - A
QUESTION 4
Job, a mechanic, rents a house from Theko. Job and Theko sign a two-year contract of lease in
terms of which Job is prohibited from using the house for business purposes without Theko’s
prior consent. Job moves into the house and, without Theko’s knowledge, converts part of it into
a workshop to repair cars. Job’s neighbours are alarmed about his business activities and the
potential decrease in the value of their houses. Because of their complaints, and the fact that
Job fell into arrears with the rent, Theko sells the house to Fisto. Which ONE of the following
statements is CORRECT?
1 Fisto will be bound to the contract of lease with Job due to the maxim “huur gaat
voor koop”.
2 Fisto will not be bound to the contract of lease with Job if he was not aware of the
existence thereof at the time when ownership passed to him.
3 To recover arrear rent, Fisto may attach and sell Jerry's cars which have been brought
to Job for repairs, even though Jerry has informed Fisto that he was the owner of the
cars.
4 To recover arrear rent, Fisto may attach and sell a television set that belongs to Job,
but is in the possession of Jack, a friend of Job.
5 Fisto may not sue Job for breach of the lease agreement, since the contract of lease was
concluded between Job and Theko, and not between Job and Fisto. (1)
Feedback:
The correct answer is (1). Fisto will be bound to the contract of lease with Job because of the
“huur gaat voor koop” rule (see Study Guide 1, study unit 10, paragraph 10.3). As such,
option (2) is incorrect. Option (3) is also incorrect because goods of third parties are not subject
to the lessor’s tacit hypothec and cannot be attached and sold to recover arrear rent due by the
lessee where such goods are only temporarily on the rental premises and where the lessor is
,aware that the goods are that of a third party (see Study Guide 1, study unit 15,
paragraph 15.2.2.3). Option (4) is incorrect because the goods of a third party will only be
subject to the lessor’s tacit hypothec if the goods are brought onto the leased property for the
use of the lessee (see again Study Guide 1, study unit 15, paragraph 15.2.2.3). Option (5) is
incorrect because in terms of the “huur gaat voor koop” maxim, the new owner (the purchaser)
steps into the shoes of the original lessor (the seller) which means that the new owner may sue
the lessee for breach of the lease agreement (see again Study Guide 1, study unit 10,
paragraph 10.3).
5) TUT 2021 S1 A2 MCQ - A
QUESTION 5
S sells her Vespa scooter to P for R25 000. The parties agree that the Vespa will be delivered
and paid the next day, without any further contractual arrangements between the parties. The
next day P waits at his house, with the R25 000 cash, for S to deliver the Vespa, but S fails to
show up, because she is waiting at her house for P. Which of the following statement/s is/are
CORRECT?
1 S has breached her duty to deliver the Vespa to P’s house.
2 P has committed mora creditoris by failing to fetch the Vespa from S.
3 P has committed mora debitoris by failing to pay S R25 000.
4 (1) and (3) are correct.
5 (2) and (3) are correct. (1)
Feedback:
The correct answer is (5). Option 1 is incorrect as the seller is not obliged to seek out the
purchaser to give delivery but must only place the sold thing at the disposal of the buyer unless
agreed otherwise. S has placed the Vespa at the disposal of the P as she is ready to give
delivery to P at her house (see Study Guide 2, study unit 5, paragraph 5.1). Option 2 is correct
because unless agreed otherwise, the purchaser must take delivery of the thing and if he fails
to take delivery of the sold thing he falls into mora creditoris (Study Guide 2, study unit 8,
paragraph 8.3). Option 3 is also correct because unless agreed otherwise, the purchaser is
obliged to pay the purchase price to purchaser as agreed (in this case to S on the next day) and P's
failure to do so would constitute a contract breach in the form of mora debitoris (see Study
Guide 2, study unit 8, paragraph 8.2). As options 2 and 3 are correct, option 4 is incorrect and
the correct answer is (5).
6) TUT 2021 S1 A2 MCQ - A
QUESTION 6
Which ONE of the following statements regarding section 2(1) of the Alienation of Land Act 68
of 1981 is INCORRECT?
1 For a deed of alienation to be rectified it must prima facie comply with the requirements
of the Act.
2 Signing a deed of alienation with initials is a valid signature.
3 A term which only contains information need not be in writing in a deed of alienation.
4 A principal can validly ratify a deed of alienation which was entered into by a
person who did not have the necessary written authority when he signed the
deed of alienation.
5 A street address is sufficient to identify land in a deed of alienation. (1)
Feedback:
, The correct answer is (4). A principal cannot validly ratify a deed of alienation which was
entered into by a person who did not have the necessary authority when he signed the deed of
alienation (see Study Guide 3, study unit 1 paragraph 1.2.6.2). All the other options are true
(see Study Guide 3, study unit 1).
7) TUT 2021 S1 A2 MCQ - A
QUESTION 7
Missoni wants to buy 20 metres of silk material from Sensations Factory. Which of the following
will NOT qualify as a valid purchase price?
1 200 kilograms of wool.
2 3 months advertising space in “House and Home” magazine.
3 The amount of money determined by Harry, an independent financial adviser.
4 All of the above.
5 Only (1) and (2) above. (1)
Feedback:
The correct answer is (5). Option 3 does qualify as a valid purchase price as the price
may be determined by a third party (see Study Guide 2, study unit 2, paragraph 2.3.5).
Options 1 and 2 do not qualify as a valid purchase price as it is not expressed in an
accepted unit of currency (for example in rand and cents) (see Study Guide 2, study unit
2, paragraph 2.3.1).
8) TUT 2021 S1 A2 MCQ - A
QUESTION 8
William buys a motorbike from Motor World (Pty) Ltd for R35,000. One week later, as William is
driving to work; the motorbike makes a loud noise and comes to a stop. William is unable to get
the motorbike started again and has to have the bike transported to a garage. The transport
costs are R1,500. There he is told that the engine has seized. It appears that problems with the
engine existed even before William bought the bike but that Motor World was unaware of this.
Had William known of the defect, he would never have bought the motorbike. Should the
garage be correct about the pre-existing defects, which common law remedy does William
have?
1 William may have the contract declared void due to Motor World’s misrepresentation.
2 William may keep the motorbike and claim R35,000 from Motor World, based on the
warranty against eviction.
3 William has no remedy because Motor World did not know about the defect at the time
of conclusion of the sale agreement.
4 William may claim R36,500 from Motor World on returning the motorbike, based
on the actio redhibitoria.
5 William may have the motorbike repaired at the cost of Motor World. (1)
Feedback:
The correct answer is (4). The facts of the case deals with the seller’s aedilitian liability for latent
defects (see generally Study Guide 2, study unit 6, paragraph 6.5). The requirements for this
liability has been met, namely (1) there is a defect in the article (there are problems with the
engine), (2) the defect is not insignificant (the entire engine seized), (3) the purchaser was
unaware of the defect (William did not know of the defect), (4) the defect must be latent (this is
probably the case as neither William nor Motor World knew of the defect and the motorbike did
work at the time of the sale), (5) the defect must have existed at contract conclusion (this
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