Commercial Law 1C
CLA1503
Department of Mercantile Law
Assignment 01 for 2021 (compulsory)
Unique Number: 707622
Due: 13 May 2021
QUESTION 1
Moses enters into a contract of sale with Xolile to buy a new truck from him (Xolile) one
month after Simon’s death.
Answer the following questions:
(i) Distinguish between a time clause and a condition. (2)
(ii) Describe the legality of the contractual relationship between Moses and Xolile. (3)
(iii) Name and describe the type of clause applicable in this case. (2)
[7]
Answer:
(i) A time clause determines a specific time when or the period within which the contract
will either become operative or be dissolved. The moment must be specified or determined
or ascertainable or determinable. In other words it must be certain that the moment or
event will take place. It is certain that Simon will die although it is uncertain when he will
die. The moment for performance is therefore determinable.
A condition on the other hand, is a contractual term which renders the operation and
consequences of the contract dependent on the occurrence, or non-occurrence, of a
specified uncertain future event. The future event must be specified and there must be no
doubt which event will render the obligation operative or terminate them but it must be
uncertain whether the event will indeed occur. It is certain that Simon’s death will occur and
therefore it cannot be a condition.
CLA1503
Department of Mercantile Law
Assignment 01 for 2021 (compulsory)
Unique Number: 707622
Due: 13 May 2021
QUESTION 1
Moses enters into a contract of sale with Xolile to buy a new truck from him (Xolile) one
month after Simon’s death.
Answer the following questions:
(i) Distinguish between a time clause and a condition. (2)
(ii) Describe the legality of the contractual relationship between Moses and Xolile. (3)
(iii) Name and describe the type of clause applicable in this case. (2)
[7]
Answer:
(i) A time clause determines a specific time when or the period within which the contract
will either become operative or be dissolved. The moment must be specified or determined
or ascertainable or determinable. In other words it must be certain that the moment or
event will take place. It is certain that Simon will die although it is uncertain when he will
die. The moment for performance is therefore determinable.
A condition on the other hand, is a contractual term which renders the operation and
consequences of the contract dependent on the occurrence, or non-occurrence, of a
specified uncertain future event. The future event must be specified and there must be no
doubt which event will render the obligation operative or terminate them but it must be
uncertain whether the event will indeed occur. It is certain that Simon’s death will occur and
therefore it cannot be a condition.
