BUSL6222 LU2
BUSL6222 LU2 – IAS10 Events after
the reporting period
Chapter 1 (1.3.3) – Legal Rights
1.3.3.Legal Rights
Two types of rights:
1. Personal rights
o Rights that one person can exercise only against specific people / rights
against persons
o Eg. X contracts to sell a textbook to Y, X has the personal right to claim
payment from Y and Y has the personal right to delivery of the book from X
after payment. This means that they can only enforce their respective rights
against each other (and no one else)
2. Real rights
o Can be forced against the whole world.
o Rights in things that can be enforced against everyone
o Eg. Ownership
Chapter 4 – Contractual capacity
4.1 Requirements for a valid contract
1. Contractual capacity
2. Agreement
3. Legality
4. Possibility of performance
5. Formalities
6. Certainty
All requirements must be met for it to be a legally binding / valid contract. If all requirements
aren’t met, the contract is void.
4.2 Who has contractual capacity?
Natural persons are able to enter into valid contracts unaided as they have contractual
capacity.
4.3 What is contractual capacity?
= legal ability to enter into a contract.
A child has the capacity to be liable in terms of criminal law from the age of 12. Contractual
capacity differs for:
- Minors - Mentally ill persons
- Married persons - Insolvent
1
, BUSL6222 LU2
4.4.1 Contractual capacity regarding minors
Who is a minor?
Person below the age of 18 years of age.
How can a minor reach majority and turn into a major?
- Turn 18 years of age
- Marriage (even to another minor – if this marriage ends, both minors remain majors)
- Emancipation
Emancipation
Emancipation means the minor has been freed from parental authority.
In South Africa, a minor can be emancipated by a court or through tacit emancipation where
a guardian implicitly allows the minor to act as an adult without formal declaration. Although
less common today due to the age of majority now being 18 (previously 21), tacit
emancipation is still possible.
To determine if tacit emancipation has occurred, several factors must be considered
together, including:
- Guardian–minor relationship: Did the guardian consciously allow the minor to live
independently?
- Living arrangements: Is the minor living apart from their parents or guardian?
- Financial independence: Does the minor earn a living and support themselves
financially (not just through a part-time job)?
- Bank account ownership: Operating a personal bank account suggests
independence.
No single factor is enough to prove emancipation all must be assessed holistically, and the
burden of proof lies with the person claiming tacit emancipation.
Guardianship
= refers to the admin part of taking care of a child.
A guardian must:
- Look after the child’s property or money
- Give or refuse permission for the child to enter into contracts
- Help the child in legal matters or official settings
- Agree (or not) to the child’s marriage or adoption
- Help the child when applying for a passport
The guardian can be:
- Biological Parents – these are the natural guardians
o The biological mom always has full guardianship rights
- If the mom is a minor – her guardian becomes the guardian of the child
- Biological Father:
2
BUSL6222 LU2 – IAS10 Events after
the reporting period
Chapter 1 (1.3.3) – Legal Rights
1.3.3.Legal Rights
Two types of rights:
1. Personal rights
o Rights that one person can exercise only against specific people / rights
against persons
o Eg. X contracts to sell a textbook to Y, X has the personal right to claim
payment from Y and Y has the personal right to delivery of the book from X
after payment. This means that they can only enforce their respective rights
against each other (and no one else)
2. Real rights
o Can be forced against the whole world.
o Rights in things that can be enforced against everyone
o Eg. Ownership
Chapter 4 – Contractual capacity
4.1 Requirements for a valid contract
1. Contractual capacity
2. Agreement
3. Legality
4. Possibility of performance
5. Formalities
6. Certainty
All requirements must be met for it to be a legally binding / valid contract. If all requirements
aren’t met, the contract is void.
4.2 Who has contractual capacity?
Natural persons are able to enter into valid contracts unaided as they have contractual
capacity.
4.3 What is contractual capacity?
= legal ability to enter into a contract.
A child has the capacity to be liable in terms of criminal law from the age of 12. Contractual
capacity differs for:
- Minors - Mentally ill persons
- Married persons - Insolvent
1
, BUSL6222 LU2
4.4.1 Contractual capacity regarding minors
Who is a minor?
Person below the age of 18 years of age.
How can a minor reach majority and turn into a major?
- Turn 18 years of age
- Marriage (even to another minor – if this marriage ends, both minors remain majors)
- Emancipation
Emancipation
Emancipation means the minor has been freed from parental authority.
In South Africa, a minor can be emancipated by a court or through tacit emancipation where
a guardian implicitly allows the minor to act as an adult without formal declaration. Although
less common today due to the age of majority now being 18 (previously 21), tacit
emancipation is still possible.
To determine if tacit emancipation has occurred, several factors must be considered
together, including:
- Guardian–minor relationship: Did the guardian consciously allow the minor to live
independently?
- Living arrangements: Is the minor living apart from their parents or guardian?
- Financial independence: Does the minor earn a living and support themselves
financially (not just through a part-time job)?
- Bank account ownership: Operating a personal bank account suggests
independence.
No single factor is enough to prove emancipation all must be assessed holistically, and the
burden of proof lies with the person claiming tacit emancipation.
Guardianship
= refers to the admin part of taking care of a child.
A guardian must:
- Look after the child’s property or money
- Give or refuse permission for the child to enter into contracts
- Help the child in legal matters or official settings
- Agree (or not) to the child’s marriage or adoption
- Help the child when applying for a passport
The guardian can be:
- Biological Parents – these are the natural guardians
o The biological mom always has full guardianship rights
- If the mom is a minor – her guardian becomes the guardian of the child
- Biological Father:
2
