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MRL2601 Assignment 2 - Grade achieved: 18/20

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Assignment 2 contains answers and references

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  • October 9, 2024
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  • 2024/2025
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MRL ASSIGNMENT 2


BY


[TAVIA KIM PARKS]
(12540110)


SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE DEGREE
LLB


IN THE


DEPARTMENT OF MERCANTILE LAW


SCHOOL OF LAW
UNIVERSITY OF SOUTH AFRICA


SUPERVISOR: PROF J GELDENHUYS


(ASSIGNMENT NUMBER 02)


MODULE CODE: MRL2601


UNIQUE CODE: 347800


2024

, Question 1



1.1) In order to prove the estoppel, Office Supplies Ltd would have to prove in
accordance with the case of Aquarius Maritime (Pty) Ltd v MV Agatis and Others:



The three elements which the promisee is required to prove were said to be trite,
namely (a) that the promisor made a clear and unequivocal promise; (b) that the
promisee acted in reliance on the promise; and (c) that as a result of the reliance the
promisee suffered detriment.1

Additionally, Office Supplies Ltd can prove that the misrepresented company either
intentionally or due to negligence, that the individual concerned had the necessary
power to represent the company. The misrepresentation was made by the company (in
this case Furnmax (Pty) Ltd) and the third party (Office Supplies Ltd) was prejudiced by
this misrepresentation and was induced to deal with the induvial due to the
misrepresentation.2



The case of Freeman and Lockyer v Buckhurst Part Properties (Mangal) Ltd the court
held that estoppel could not rise from Articles which refers to the Memorandum of
Incorporation in terms of the current Companies Act, due to Furnmax (Pty) Ltd’s
directors having knowledge of Lesedi’s contract, allowed him (a director) to act as the
managing director which resulted in culpable representation that he had the authority
to act.3



The contract (promise) Lesedi had with Office Supplies Ltd was to deliver the office
equipment and then they receive payment. Lesedi created the conduct that lead Office
Supplies to believe something false to be factual. In order for Office Supplies Ltd to
prove representation, there must be a very clear and unmistakable statement such as
a promise (or in this case a contract) from Lesedi to them which created the expectation
which is mentioned in the case of Africast (Pty) Ltd v Pangbourne Properties Ltd ‘must
be a misrepresentation of a fact; ie, the estoppel denier must be shown to have initially
told or insinuated by conduct, a falsehood or induced a reasonable belief in a
falsehood.’4 Representation can be implied with Lesedi’s two previous contracts with

1 Aquarius Maritime (Pty) Ltd v MV Agatis and Others [2015] ZAWCHC 62 (15 May 2015) [58].
2 Unisa, Entrepreneurial Law: Study Guide for MRL2601 (University of Pretoria 2022) 47.
3 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480.
4 Africast (Pty) Ltd v Pangbourne Properties Ltd [2013] 2 All SA 574 (GSJ) [45].

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