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PVL3702 EXAM PACK 2024/2024 QUESTIONS WITH COMPLETE ANSWERS, PREPARED FOR EXAM REVISION. CONTAINS QUESTIONS FROM RECENT PAST EXAM PAPERS WITH RESPECTIVE ANSWERS.

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Door: djsimzadjsimza • 5 dagen geleden

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,UNIVERSITY EXAMINATIONS




May/June 2024


PVL3702

Law of Contract

100 Marks
10 May 2024
08h00-11h00 (3 Hours)



First examiner: Adv R Ismail (First Examiner)
Second examiner: Professor CJ Pretorius (Second Examiner)



This paper consists of 9 pages.




This is a closed-book examination


THIS IS A TAKE-HOME EXAM



PLEASE READ THE FOLLOWING VERY IMPORTANT INFORMATION CAREFULLY BEFORE ANSWERING
THE EXAMINATION QUESTIONS.

,QUESTION 1

Jack wants to sell his Yamaha speedboat. He approaches Jill, who sells speedboats
for a living, and asks her if she is interested in buying his Yamaha speedboat. Jill
signs a written offer and submits it to Jack for the Yamaha speedboat for R200 000,
in a document titled “Contract of Sale.” The offer sets out all the relevant terms, and
includes the following clause:

“This offer is irrevocable and expires at noon on 5 March 2024, and upon signature
by the seller will indicate his acceptance, as well as the conclusion of a valid contract
of sale.”

On 4 March 2024 Jack signs the contract of sale document and he inserts the date
of his signature therein, but he forgets to immediately inform Jill that he has done so.
Only on 8 March 2024, Jack informs Jill of his acceptance. Jill indicates to Jack that
her offer lapsed on 5 March 2024, and that Jack did not inform her of his acceptance
timeously. Jill further informs Jack that she no longer wants to purchase the Yamaha
speedboat. Jack approaches you for legal advice. Do a detailed analysis and
application of the offer and acceptance requirements and advise Jack if there is a
legally binding contract between him and Jill. You must also advise Jack about his
concern that he only informed Jill after 5 March 2024, that he accepted Jill’s offer.
Discuss
fully. Do not apply the Consumer Protection Act 68 of 2008 to this question.
[20]



QUESTION 2

Craig and Pamela are friends, and they jointly own a very expensive painting, in equal
shares. Pamela is involved in a serious car accident and is hospitalised for six months.
During this time, she was heavily medicated because of the pain she constantly
experienced due to her injuries. The medication often made her drowsy for long
periods of time. On one occasion when Craig visited her in hospital, he presented her
with a document and requested that she sign it. Craig explained to Pamela that it was
a contractual document to appoint a service provider they were going to use, for the
safe keeping of the painting they jointly owned, and he indicated that he had already
signed the document. Pamela in her drowsy state did not read the document and she
signed it. When she got discharged from hospital and regained her strength, she
learnt that the document she signed gave full ownership rights of the painting to Craig
without Pamela receiving any compensation, and it had nothing to do with appointing
a service provider to keep the painting safe. Assume that the written agreement that
both parties signed complied with any applicable formalities that was required to grant
full ownership rights of the painting to Craig. Pamela approaches you for legal advice.
Apply the will theory and the direct reliance theory and advise Pamela whether she

, was bound by the written document that they both signed. Discuss fully and refer to
case law in your answer. Do not apply the Consumer Protection Act 68 of
2008. [20]

2009. QUESTION 3

Mike and Mary who are married, own a hardware business jointly, in equal shares.
Mike has been actively operating the business for many years whilst Mary has been
taking care of the home and looking after the children. As such Mary has had very
little exposure to the business, but she trusts Mike as they have been married for
many years. One day Mike convinces Mary to transfer full ownership of the business
to him, which Mary does. A few months later, Mike informs Mary that he is in love with
Carol and that he plans to build a life with her. Mary wants to cancel the contract she
concluded with Mike for the transfer of the business to him. Based on this contract,
Mary was paid R50 000, but the market value of the business was R900 000. Assume
that any formalities that may be applicable to this transaction, were complied with.
Advise Mary on an appropriate cause of action that she can pursue to seek to cancel
the contract, and whether she will be successful. Discuss fully and refer to case law
in your answer. Do not discuss the law relating to misrepresentation for this question.
Do not apply the
Consumer Protection Act 68 of 2008. [20]


QUESTION 4

The police receive a few leads from the public that X has been involved in selling
crayfish illegally, for large sums of money. In accordance with the Marine Life Act 25
of 2008, it is illegal to sell crayfish without obtaining a license from the Minister of
Wildlife and Marine Affairs. This Act also provides that the sale of crayfish by any
person or entity without possessing the requisite license, is deemed void, and that
such person may be liable to a fine or an appropriate prison sentence. The police in
the area decide to set a trap for X, and they place an order to purchase 100 kilograms
of crayfish from X for R200 000. The police make this payment to X, and he (X)
delivers the 100 kilograms of crayfish to them. X is subsequently arrested and
charged with contravening the Act because he admitted that he never ever had the
requisite license to sell crayfish, and he knew that it was illegal to sell crayfish without
a license. In a subsequent civil trial, X seeks to claim back the 100 kilograms of
crayfish he delivered to the police. In the same trial, the police on the other hand are
claiming back the R200 000 that they paid to X, to be returned to the State. Discuss
fully if either party or both parties will succeed with their respective claims. Refer to
case law in your answer. Do not apply the Consumer
Protection Act 68 of 2008. [20]



QUESTION 5

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