CLA 1503 ASSIGNMENT 2

Question 1a) The formalities required by both parties (Moloko and Mamba) include the compliance of legislation relating to the contract of sale for the purchase of a piece of land. Whereby, as per the Alienation of Land Act 68 of 1981, no contract is valid for the alienation of land unless it is contained in a contract of alienation signed by the parties to the contract or their agents acting on instructions written by the principles. Thus, Moloko and Mamba need to create and complete a contract of alienation signed by both parties. Furthermore, these formalities also include the condition in which Mamba must first be granted approval for a mortgage bond by Bruto Bank. Thus, if this was an oral agreement between Moloko and Mamba and it precedes the written agreement, it must be determined from the contract whether the parties intended reduction to writing to be a requirement for validity or mere proof of their oral contract. If writing is a requirement for the validity of the contract, the ‘contract’ remains invalid until it is put in writing in the contract between Moloko and Mamba. Question 1b) The contract between Moloko and Mamba contains a suspensive condition. A suspensive condition is a contractual term which suspends the operation of the contractual obligations in terms of the contract until the condition has been fulfilled. Even though a contractual relationship exists, if this condition is not met the contract is deemed invalid. In the case of the contract of sale for the purchase of land between Moloko and Mamba, the suspensive condition is the approval of a mortgage bond from Bruto Bank for Mamba. If this condition is met, neither party can resile. However, if this condition is not met, the contract between Moloko and Mamba will be terminated. This study source was downloaded by from CourseH on :09:32 GMT -05:00 This st