Exam (elaborations)
MANCOSA Business law past papers
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- Business law
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- Management College Of Southern Africa (MANCOSA)
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FINAL ONLINE SUMMATIVE ASSESSMENTBachelor of Commerce in Accounting
Bachelor of Commerce in Entrepreneurship
Bachelor of Commerce in Digital Marketing
Bachelor of Commerce in Retail Management
Bachelor of Commerce in Project Management
PROGRAMME
Bachelor of Commerce in International Business
Bachelor of Commerce in Financial Management
Bachelor of Commerce in Marketing Management
Bachelor of Commerce in Supply Chain Management
Bachelor of Commerce in Information and Technology Management
MODULE Business Law
YEAR Two (2)
INTAKE January 2024 Semester 1
DATE 20 June 2024
,SECTION A [100 MARKS]
Read the scenario below and answer ALL the questions that follow.
The law of contract is fundamental in order to promote confidence and clarity in both business and personal dealings. It
gives parties a structure for creating legally enforceable agreements, guaranteeing that rights, responsibilities, and
remedies are clear. The law of contract encourages economic stability by upholding contracts, which encourages
investment and corporate expansion. In addition, it maintains equity by ensuring that each party fulfils their commitments.
The law of contract is essential to upholding social order within the confines of the legal system, advancing justice, and
facilitating transactions.
Mark is an entrepreneur who owns an events company in Durban called Events For You Inc. Events For You Inc gained
acclaim for orchestrating unforgettable weddings in Durban. Mark's ambition to expand beyond local borders
necessitated meticulous planning and execution. His vision aimed to establish Events For You Inc as a premier luxury
wedding brand worldwide. With strategic partnerships in place, Mark initiated promotional campaigns targeting affluent
clientele. Collaborations with influencers and strategic use of social media platforms amplified brand visibility. Events For
You Inc exclusive wedding series generated significant interest, attracting inquiries from global couples seeking
extraordinary experiences. Mark has recently noticed Cameron’s work on social media. Cameron is a 16-year-old
influencer who reviews the finest cuisine in Durban. Cameron resides with his aunt Theresa, who is also his legal
guardian. Mark thinks Cameron could assist in promoting his company.
(Singh; 2024)
QUESTION 1 (10 Marks)
Mark seeks your advice as he wants to understand the necessary legalities.
1.1 Discuss the term ‘Consensus Ad Idem’ in law. You are required to provide examples to illustrate your (5 Marks)
understanding of the term.
1.2 Can Cameron contract in law? Discuss fully. (5 Marks)
QUESTION 2 (25 Marks)
Mark is always looking for equipment to add to his events catalogue. He notices a self-operated photo booth
on marketplace going for a great price of R 1500.00. The advert is appealing stating that the photo booth
uses “state of the art” technology. Mark makes an offer to the seller, and the seller agrees. Mark is delighted
as this addition will boost the popularity of his business. He is excited to use the camera at his first wedding.
During the wedding the guests complain that the camera is defective and prints pictures that are distorted.
Mark is embarrassed and has to deal with angry clients. After consulting a professional it is discovered that
the paper and ink mechanism tray has a crack that is not visible to the naked eye. This is the reason that
the prints are not clear. Mark does some enquiries; however, nobody has stock of a new printing and ink
mechanism as it is now outdated.
Mark wishes to understand his remedies in law for the sale of defective items.
2.1 You are required to fully discuss the TWO (2) remedies respectively, which specifically relate to latent (14 Marks)
defects.
2.2 Determine which remedy would be best suited to Mark’s legal problem and provide detailed reasoning (11 Marks)
based on the facts above as to why this would be most applicable to Mark
,QUESTION 3 (25 Marks)
Mark hires Tracey to assist with photography, however he soon realises that the demand for photography is
not significant. Mark conducts an analysis of his customers’ needs and realises that there is no longer a
need for photography services as people are now opting for high tech drone footage for weddings.
Mark is a licensed drone pilot, so he has decided that he will offer drone wedding footage services as a part
of his package.
Mark decides that it would be the best option to terminate her contractual agreement.
3.1 You are required to list TEN (10) ways in which an employment contract may terminate. You must (20 Marks)
thereafter provide a full discussion for each point, which you have listed.
3.2 Is Mark legally allowed to terminate Tracey’s contract based on the above set of facts? Apply the (5 Marks)
relevant principles, which you have discussed above, and provide a detailed explanation.
QUESTION 4 (15 Marks)
Mark has an innovative idea. He wants to include a catering component into his business. He invites local
businesses, media houses and social media influencers to his event called “A night of Saffron”. What sets
Mark apart from other catering businesses will be his uniquely crafted Saffron dishes. These dishes are
meant to exhibit a ‘taste of Durban’. He contracts with Spices Galore to supply him with Saffron so that his
wife Samantha can prepare the dishes. On the morning of the event, Samantha is eagerly awaiting her final
ingredient to finish off her dishes, when she receives a call from the owner of Saffron Galore to apologise
stating that they are unable to source the saffron due to their local supplier in Durban not having stock of
saffron. The owner notes that Samantha can check in Pietermaritzburg for saffron as she has heard from a
friend that saffron is plentiful in that area as the manufacturer has a store. The owner of Saffron Galore
stated that it was impossible to perform their obligations as the shortcoming was extraordinary in nature.
Mark and Samantha are angry as they have a legally binding contract with Saffron Galore.
You are required to provide legal advice to Mark and Samantha on their problem. You are expected to
outline the relevant law, cite applicable case law, and provide a legal opinion on the above problem.
, QUESTION 5 (25 Marks)
Mark and Samantha’s son Tyron has recently obtained his driver’s license. They believe that it would be a
great idea for him to take a gap year from studying and work in their business. They decide that Tyron will
be employed as a chauffeur to transport the bride and groom in their luxury vehicle. The insurance broker
enquires with Mark about the designated driver for the luxury vehicle. Mark mentions that he will be the sole
driver. Mark also mentions that the vehicle will be used for personal purposes, aiming for a more affordable
monthly premium. As a result of Mark's 35 years of driving experience, the insurance company classifies
him as a low-risk driver, which aligns with his intention to maintain the vehicle's use for personal needs only.
However, whilst en route to the bridal couple's home, Tyron unfortunately collides into his cousin Jacob’s
vehicle. Jacob’s vehicle is extensively damaged. Due to the fact that Tyron is Jacob’s younger cousin, he
decides not to take any legal action against him.
A few months later, Tyron receives a legal notice from Jacob’s insurance company ABC insurers stating that
they are pursuing legal action to recover the costs of the damage on Jacob’s car.
5.1 Tyron is angry as he notes that his cousin Jacob expressly stated that he would not sue him. He further (10 Marks)
states that the insurance company has no legal standing in this matter.
Based on the facts presented to you above, comment critically on whether the insurance company has legal
standing in this matter. You must cite the applicable doctrine.
5.2 Samantha’s sister Tammy is an insurance broker. She tells Tyron not to worry as she will ask the head of (5 Marks)
the legal department who happens to be her neighbour to disregard this matter, as she has a personal
interest in it. Evaluate the actions of Tammy.
5.3 Mark has been diligent in the payment of his premiums. He also has never claimed from his insurance (10 Marks)
since inception of his contract.
You are appointed to assess the facts of the matter and propose a recommendation to the insurance
company. Based on the facts presented above fully discuss as to whether the insurance company ought to
honour the agreement to indemnify Mark against the damage.
END OF PAPER
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