HFL1501 Assignment 2 Semester 1 2023 (735179)

HFL1501 Assignment 2 Semester 1 2023 Answers, guidelines, workings and references ........................................................................................ QUESTION 1 Write a short paragraph on the relationship between consensus and the law of contract. In your answer, explain what consensus entails and how it impacts on a contract. Your paragraph should be written in your own words and be based on your understanding of this topic as discussed in the HFL1501 Study Guide. (3) [3] QUESTION 2 Read the following scenarios and identify whether the contract described in each is valid, void or voidable. In each instance, also indicate which factor (potentially) influences consensus: 2.1 John buys two tickets to a movie from Andile. John is under the impression that he is buying the tickets from a woman named “Ayanda”. (2) 2.2 Tshidi kidnaps Rabelani’s daughter and uses this as leverage to force Rabelani to sell his house to Tshidi at a ridiculously low price. (2) 2.3 Maggie tries to convince Lelo to buy her three-year-old fridge. Maggie lies to Lelo and tells her that the fridge was bought last month and that it was only used for two days. Based on this false information, Lelo buys the fridge from Maggie. (2) [6] 2 QUESTION 3 Indicate whether the performance in the agreement concluded in each of the following scenarios represents specific performance or unspecified performance: 3.1 Owen gets drunk and accidentally fires his pistol near the fence separating his farm from Mzu’s farm. The bullet from Owen’s weapon kills Mzu’s prized bull. The bull has won awards at two local competitions. Owen undertakes to compensate Mzu for his loss. He will pay Mzu the amount an independent appraiser determines as the value of the bull at the time of its death. (1) 3.2 S’bu agrees to buy from Andane three 1-once Kruger Rand gold coins minted in 2022 at the gold price and currency exchange rate applicable on 14 March 2023. (1) [2] QUESTION 4 Indicate whether each of the agreements in the following scenarios contains a resolutive term, a resolutive condition, a suspensive term, or a suspensive condition: 4.1 Riza agrees to lease his house to Mathapelo for the month of August 2021. (1) 4.2 Naledi agrees to employ Jacobus full time from March 2021, but only if Jacobus passes his matric examination. (1) 4.3 Thomas undertakes to take his fiancée on a luxury cruise around the Mediterranean if Thomas wins the lottery. (1) [3] QUESTION 5 The following statements regarding the contract of purchase and sale are all false. In each instance, explain why this is so: 5.1 The delivery of the thing sold is required for a contract of sale to be valid. (1) 5.2 A seller has to be the owner of the thing sold for the contract of sale to be valid. (1) 5.3 The inclusion of a voetstoots clause in a contract of sale has the effect that a seller may not be held liable for any defects found in the object of sale after the agreement is concluded. (1) 5.4 Under modern South African law, the requirement that both the seller and the purchaser must act in good faith has remained unaltered from the original Roman law prescripts. (1) 5.5 The Consumer Protection Act 68 of 2008 is applicable to all sales agreements concluded in South Africa. (1) [5] 3 QUESTION 6 Answer the following questions on the modern developments regarding the law of contract in South Africa: 6.1 Explain why freedom of contract is not always beneficial to all contracting parties. (3) 6.2 Consider the case of Everfresh Market Virginia (Pty) Ltd v Shoprite Checkers (Pty) Ltd 2012 (1) SA 256 (CC). Did the decision in this case have a significant impact on the role of the principle of good faith in South African contract law? Explain your answer. (3) [6]