COMMERCIAL LAW ASSIGNMENT 1 2026
, COMMERCIAL LAW ASSIGNMENT 1 2026
Table of Contents
QUESTION 1 ............................................................................................................. 3
QUESTION 2.1 .......................................................................................................... 3
Question 2.2 ............................................................................................................... 4
QUESTION 3 ............................................................................................................. 5
QUESTION 4.1 Identification of Parties ..................................................................... 6
QUESTION 4.2: Whether the Agreement Constitutes a Stipulatio Alteri .................... 7
QUESTION 4.3: Legal Effect of Lindiwe's Acceptance ............................................... 7
Question 5.1: Application of the NCA to GreenGro's Credit Agreements ................... 9
Question 5.2: Protection Offered for the R150 000 Short-Term Loan ....................... 10
Question 5.3: Application to the R300 000 Mortgage Loan and Interest Rate Complaint
................................................................................................................................. 11
QUESTION 6 ........................................................................................................... 13
Question 7.1: Advise Amira on Revocation of Kabelo's Authority and Liability for
Expenses ................................................................................................................. 15
Question 7.2: Whether Kabelo Had Authority After Resigning as a Director ............ 17
Question 8: Legal Consequences of a Contract Concluded by an Undisclosed
Principal ................................................................................................................... 19
References ............................................................................................................... 23
, COMMERCIAL LAW ASSIGNMENT 1 2026
QUESTION 1
Scenario 1:
Branch of Government: The Legislature (Parliament)
Justification: In South Africa, the legislative authority at the national level is vested in
Parliament, which consists of the National Assembly and the National Council of
Provinces (NCOP) according to Ntlailane and Maseng (2024). The core function of the
legislature is to consider, debate, amend, and pass bills. Therefore, the function of
debating and passing a new law regulating digital privacy is a legislative act.
Scenario 2:
Branch of Government: The Executive
Justification: While Parliament passes the bill, it only becomes an Act of Parliament
once the President signs it. The President is the head of the national executive.
Signing a bill into law is not a legislative function (as the law has already been passed),
but rather an executive function of assenting to the legislation and initiating the
enforcement of that law (Boadu, 2022). The President’s role here is to execute and
implement the legislative will.
Scenario 3:
Branch of Government: The Judiciary
Justification: The function of interpreting the law and determining whether legislation
is consistent with the Constitution is vested in the courts. The judiciary is the
independent arbiter of legal disputes (Dlanga, 2024). When Alex challenges the
constitutionality of a law in the High Court, they are invoking the judicial authority of
the Republic to test the law against the Constitution, which is the supreme law of the
land.
QUESTION 2.1
Court: The Regional Division of the Magistrates' Court
Reasons:
Thabo's claim for R350 000 falls squarely within the monetary jurisdiction of the
Regional Magistrates' Court. In South Africa, the Magistrates' Courts are divided into
, COMMERCIAL LAW ASSIGNMENT 1 2026
Table of Contents
QUESTION 1 ............................................................................................................. 3
QUESTION 2.1 .......................................................................................................... 3
Question 2.2 ............................................................................................................... 4
QUESTION 3 ............................................................................................................. 5
QUESTION 4.1 Identification of Parties ..................................................................... 6
QUESTION 4.2: Whether the Agreement Constitutes a Stipulatio Alteri .................... 7
QUESTION 4.3: Legal Effect of Lindiwe's Acceptance ............................................... 7
Question 5.1: Application of the NCA to GreenGro's Credit Agreements ................... 9
Question 5.2: Protection Offered for the R150 000 Short-Term Loan ....................... 10
Question 5.3: Application to the R300 000 Mortgage Loan and Interest Rate Complaint
................................................................................................................................. 11
QUESTION 6 ........................................................................................................... 13
Question 7.1: Advise Amira on Revocation of Kabelo's Authority and Liability for
Expenses ................................................................................................................. 15
Question 7.2: Whether Kabelo Had Authority After Resigning as a Director ............ 17
Question 8: Legal Consequences of a Contract Concluded by an Undisclosed
Principal ................................................................................................................... 19
References ............................................................................................................... 23
, COMMERCIAL LAW ASSIGNMENT 1 2026
QUESTION 1
Scenario 1:
Branch of Government: The Legislature (Parliament)
Justification: In South Africa, the legislative authority at the national level is vested in
Parliament, which consists of the National Assembly and the National Council of
Provinces (NCOP) according to Ntlailane and Maseng (2024). The core function of the
legislature is to consider, debate, amend, and pass bills. Therefore, the function of
debating and passing a new law regulating digital privacy is a legislative act.
Scenario 2:
Branch of Government: The Executive
Justification: While Parliament passes the bill, it only becomes an Act of Parliament
once the President signs it. The President is the head of the national executive.
Signing a bill into law is not a legislative function (as the law has already been passed),
but rather an executive function of assenting to the legislation and initiating the
enforcement of that law (Boadu, 2022). The President’s role here is to execute and
implement the legislative will.
Scenario 3:
Branch of Government: The Judiciary
Justification: The function of interpreting the law and determining whether legislation
is consistent with the Constitution is vested in the courts. The judiciary is the
independent arbiter of legal disputes (Dlanga, 2024). When Alex challenges the
constitutionality of a law in the High Court, they are invoking the judicial authority of
the Republic to test the law against the Constitution, which is the supreme law of the
land.
QUESTION 2.1
Court: The Regional Division of the Magistrates' Court
Reasons:
Thabo's claim for R350 000 falls squarely within the monetary jurisdiction of the
Regional Magistrates' Court. In South Africa, the Magistrates' Courts are divided into