201-1-2019
Question 1
An absolving agreement is an agreement
1 only creating obligations.
2 whereby a right is transferred.
3 an example of which is cession.
4 extinguishing or discharging obligations.
5 that cannot entail the transfer of ownership of property.
Option 1, 2 and 4 are descriptions of legally binding agreements. Option 1 is the
description of obligationary agreements, option 2 of real agreements and option
4 of absolving agreements. Cession is an example of a real agreement and not an
absolving agreement (option 3). An absolving agreement can entail the transfer of
ownership of property (option 5).
, Question 3
The auction of a Porsche Carrera (a type of sports car) is advertised in the
newspaper: The auction is to take place on 1 May. On 1 May X, the auctioneer,
announces before the start of the auction that the auction will be subject to
reserve and that the successful bidder must pay the price cash on delivery. Y is
the highest bidder. Which statement is INCORRECT?
1 X may validly call off the auction any time before the start of the auction on 1
May.
2 Y is not bound by the condition that the successful bidder must pay the price
cash on delivery because this condition has not been announced in the
advertisement.
3 X may not change the conditions of the auction after the first bona fide bid has
been made.
4 Y may retract his bid before the hammer falls, because Y makes an offer to buy
the car by bidding.
5 X may refuse to accept Y’s offer if Y’s bid is lower than the reserve price. (1)
The facts of this problem indicate that we are dealing with an auction subject to
conditions and its legal consequences. All the options are correct except option 2.
Y is bound.
Question 1
An absolving agreement is an agreement
1 only creating obligations.
2 whereby a right is transferred.
3 an example of which is cession.
4 extinguishing or discharging obligations.
5 that cannot entail the transfer of ownership of property.
Option 1, 2 and 4 are descriptions of legally binding agreements. Option 1 is the
description of obligationary agreements, option 2 of real agreements and option
4 of absolving agreements. Cession is an example of a real agreement and not an
absolving agreement (option 3). An absolving agreement can entail the transfer of
ownership of property (option 5).
, Question 3
The auction of a Porsche Carrera (a type of sports car) is advertised in the
newspaper: The auction is to take place on 1 May. On 1 May X, the auctioneer,
announces before the start of the auction that the auction will be subject to
reserve and that the successful bidder must pay the price cash on delivery. Y is
the highest bidder. Which statement is INCORRECT?
1 X may validly call off the auction any time before the start of the auction on 1
May.
2 Y is not bound by the condition that the successful bidder must pay the price
cash on delivery because this condition has not been announced in the
advertisement.
3 X may not change the conditions of the auction after the first bona fide bid has
been made.
4 Y may retract his bid before the hammer falls, because Y makes an offer to buy
the car by bidding.
5 X may refuse to accept Y’s offer if Y’s bid is lower than the reserve price. (1)
The facts of this problem indicate that we are dealing with an auction subject to
conditions and its legal consequences. All the options are correct except option 2.
Y is bound.
