MNN3701 EXAM PACK STUDY GUIDE 2025/2026
VERIFIED QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <LATEST VERSION>
MNN3701: Advanced Commercial Law - Simulated Exam Pack & Study Guide
Topic 1: Introduction to South African Commercial Law & The Law of Sale
1. What is the definition of a contract of sale?
Answer: A contract of sale is an agreement in terms of which one party (the seller) undertakes
to deliver a thing (merx) to another party (the buyer), who in turn undertakes to pay a price in
money for it. The essential elements are: agreement, merx, and a price in money.
2. Distinguish between a contract of sale and a contract of exchange.
Answer: In a sale, the price must be in money. In an exchange (or barter), one thing is swapped
for another, and no money is involved as the price.
3. What is the lex commissoria?
Answer: It is an express or implied term in a contract of sale that if the buyer fails to pay the
purchase price by a certain date, the contract will be automatically cancelled, or the seller may
,reclaim the goods. Its enforceability is limited by the Conventional Penalties Act and the
Constitution.
4. Explain the "passing of risk" in a sale.
Answer: Once a sale is complete (perfecta), risk passes automatically to the buyer. This means
that if the merx is destroyed or damaged through no fault of either party after the sale is
perfecta, the buyer remains liable for the price. Risk typically passes when the contract is
concluded, unless the parties agree otherwise (e.g., risk passes on delivery).
5. When is a sale considered perfecta?
Answer: A sale is perfecta when the following conditions are met: (a) the parties have reached
consensus; (b) the merx is determined or determinable; and (c) the purchase price is
determined or determinable. It is at this point that risk generally passes to the buyer.
6. What are the legal effects of a sale that is not yet perfecta?
Answer: If a sale is not perfecta, risk remains with the seller. The buyer cannot sue for delivery
of the merx, and the seller cannot sue for the price, only for damages if the buyer breaches.
7. Differentiate between a sale with a suspensive condition and a sale with a resolutive
condition.
Answer: A suspensive condition delays the creation of obligations until an uncertain future
event occurs (e.g., "sale subject to the buyer obtaining a loan"). A resolutive condition
terminates existing obligations if an uncertain future event occurs (e.g., "you may use the car
until I return from overseas").
, 8. What is an emptio rei speratae?
Answer: It is the sale of a thing hoped for (e.g., the future harvest of a crop). It is a sale subject
to a suspensive condition that the thing will come into existence. If it does not, the contract falls
away.
9. What is an emptio spei?
Answer: It is the sale of a hope or chance (e.g., the cast of a net). The buyer pays for the chance
itself, regardless of the outcome. If the chance fails to materialize, the sale is still valid, and the
price is not recoverable.
10. What are the seller's essential obligations in a contract of sale?
Answer: The seller is obliged to: (1) Deliver the merx to the buyer; (2) Warrant against eviction
(guarantee undisturbed possession); and (3) Warrant against latent defects.
Topic 2: The Voetstoots Clause & Latent Defects
11. What is a latent defect?
Answer: A latent defect is a fault or imperfection in the merx that is not visible or discoverable
upon a reasonable inspection by an ordinary person.
12. What is a patent defect?
Answer: A patent defect is a fault or imperfection that is visible or discoverable upon a
reasonable inspection. The buyer purchases the merx with all patent defects, and has no
recourse against the seller.
VERIFIED QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES || 100%
GUARANTEED PASS <LATEST VERSION>
MNN3701: Advanced Commercial Law - Simulated Exam Pack & Study Guide
Topic 1: Introduction to South African Commercial Law & The Law of Sale
1. What is the definition of a contract of sale?
Answer: A contract of sale is an agreement in terms of which one party (the seller) undertakes
to deliver a thing (merx) to another party (the buyer), who in turn undertakes to pay a price in
money for it. The essential elements are: agreement, merx, and a price in money.
2. Distinguish between a contract of sale and a contract of exchange.
Answer: In a sale, the price must be in money. In an exchange (or barter), one thing is swapped
for another, and no money is involved as the price.
3. What is the lex commissoria?
Answer: It is an express or implied term in a contract of sale that if the buyer fails to pay the
purchase price by a certain date, the contract will be automatically cancelled, or the seller may
,reclaim the goods. Its enforceability is limited by the Conventional Penalties Act and the
Constitution.
4. Explain the "passing of risk" in a sale.
Answer: Once a sale is complete (perfecta), risk passes automatically to the buyer. This means
that if the merx is destroyed or damaged through no fault of either party after the sale is
perfecta, the buyer remains liable for the price. Risk typically passes when the contract is
concluded, unless the parties agree otherwise (e.g., risk passes on delivery).
5. When is a sale considered perfecta?
Answer: A sale is perfecta when the following conditions are met: (a) the parties have reached
consensus; (b) the merx is determined or determinable; and (c) the purchase price is
determined or determinable. It is at this point that risk generally passes to the buyer.
6. What are the legal effects of a sale that is not yet perfecta?
Answer: If a sale is not perfecta, risk remains with the seller. The buyer cannot sue for delivery
of the merx, and the seller cannot sue for the price, only for damages if the buyer breaches.
7. Differentiate between a sale with a suspensive condition and a sale with a resolutive
condition.
Answer: A suspensive condition delays the creation of obligations until an uncertain future
event occurs (e.g., "sale subject to the buyer obtaining a loan"). A resolutive condition
terminates existing obligations if an uncertain future event occurs (e.g., "you may use the car
until I return from overseas").
, 8. What is an emptio rei speratae?
Answer: It is the sale of a thing hoped for (e.g., the future harvest of a crop). It is a sale subject
to a suspensive condition that the thing will come into existence. If it does not, the contract falls
away.
9. What is an emptio spei?
Answer: It is the sale of a hope or chance (e.g., the cast of a net). The buyer pays for the chance
itself, regardless of the outcome. If the chance fails to materialize, the sale is still valid, and the
price is not recoverable.
10. What are the seller's essential obligations in a contract of sale?
Answer: The seller is obliged to: (1) Deliver the merx to the buyer; (2) Warrant against eviction
(guarantee undisturbed possession); and (3) Warrant against latent defects.
Topic 2: The Voetstoots Clause & Latent Defects
11. What is a latent defect?
Answer: A latent defect is a fault or imperfection in the merx that is not visible or discoverable
upon a reasonable inspection by an ordinary person.
12. What is a patent defect?
Answer: A patent defect is a fault or imperfection that is visible or discoverable upon a
reasonable inspection. The buyer purchases the merx with all patent defects, and has no
recourse against the seller.
