Study Guide: Law of Purchase and Sale (South African Context)
1. Introduction to the Law of Purchase and Sale
- Governs contracts of sale.
- A contract involves the seller delivering the merx (item) and the buyer paying the price.
Example:
Sarah sells her house to Michael after agreeing on terms. Transfer of keys = completion of sale.
2. Historical Background
- Based on Roman-Dutch common law.
- Roman law required mutual consensus to buy and sell.
- Influences South African contract law.
- Regulated by:
- National Credit Act (credit sales)
- Alienation of Land Act (immovable property).
3. Nature of a Contract of Sale
- Seller must transfer rights and ownership.
- Signing does not transfer ownership; only a personal right is granted.
- Hidden intent (e.g., donation disguised as sale) = true intent upheld.
- Contract is void if seller does not own the item and both parties know it.
- Must agree on nature, object, and price.
4. Essentialia of a Valid Contract
1. Intention to Buy and Sell
2. Merx (specific or generic, movable/immovable/material/incorporeal).
- Illegal goods = invalid contract.
3. Purchase Price (agreed, certain, in money or dominant in money).
5. Practice Questions
- John & Peter (Kidney): X Invalid - sale of organs is illegal.
1. Introduction to the Law of Purchase and Sale
- Governs contracts of sale.
- A contract involves the seller delivering the merx (item) and the buyer paying the price.
Example:
Sarah sells her house to Michael after agreeing on terms. Transfer of keys = completion of sale.
2. Historical Background
- Based on Roman-Dutch common law.
- Roman law required mutual consensus to buy and sell.
- Influences South African contract law.
- Regulated by:
- National Credit Act (credit sales)
- Alienation of Land Act (immovable property).
3. Nature of a Contract of Sale
- Seller must transfer rights and ownership.
- Signing does not transfer ownership; only a personal right is granted.
- Hidden intent (e.g., donation disguised as sale) = true intent upheld.
- Contract is void if seller does not own the item and both parties know it.
- Must agree on nature, object, and price.
4. Essentialia of a Valid Contract
1. Intention to Buy and Sell
2. Merx (specific or generic, movable/immovable/material/incorporeal).
- Illegal goods = invalid contract.
3. Purchase Price (agreed, certain, in money or dominant in money).
5. Practice Questions
- John & Peter (Kidney): X Invalid - sale of organs is illegal.
