Law of Contract Exam Questions With Appropriate
Solutions.
Apply the three different types of impossibility that may
be applicable to a contract, noting the consequences of each
type of impossibility - accurate answers-• Subjective impossibility - a
SPECIFIC PARTY is unable to perform not anyone else
• Objective impossibility - NOBODY is able to perform
What is the difference between an agreement and a contract? - accurate
answers-Agreement:
1. An agreement is the act of coming to a mutual decision or arrangement
2. parties are bound only in honor and not in law; no intention for legal
obligation
Contract:
1. A contract is an agreement entered into by 2 or more parties with the
intention of creating a legal obligation recognized as binding in law.
what does Animus contrahendi mean? - accurate answers-serious intention to
create legally enforceable obligations.
emphasize on the phrase "legally binding agreements that are not contracts" -
accurate answers-1. Some binding contracts are not agreements because the
intention behind making that agreement may not be able to create obligations.
2. Some agreements destroy obligations, or honour them by transferring
rights
what are the legally binding agreements that are not contracts: - accurate
answers-1. Obligatory agreements: creates obligations- sale and lease
contracts
2. Absolving agreements takes away or destroys obligations
3. Real/ transfer agreements: a transferring of rights takes place. (Not a
contract, only a transfer of rights agreement)
explain legally binding agreements that are more than just contracts. -
accurate answers-some legally binding agreements that create obligations
cannot be regarded as just contracts, as they contain elements that separate
them in a different category.
,describe marriage in the context of legally binding agreements that are more
than just agreements. - accurate answers-1. Sui generis agreement (means of
its own kind or in class of itself)
2. Gives rise to a relationship that confers on the parties a status of a public
character
describe judgment by consent in relation to legally binding agreements that
are more than just agreements. - accurate answers-1. Parties can have a
settlement agreement and then ask the court to give judgement to give effect
to their agreement.
2. Has dual character:
>Firstly, it becomes a judicial act that is backed by the force of the law and is
enforceable like any other court judgement.
>Secondly, it remains a binding contract between the parties to it despite it
being backed by court.
what are the key things to remember in relation to the notion and nature of a
contract? - accurate answers->The law of contract is thus a body of legal rules
relating to the conclusion of agreements that have animus contrahendi and
consequences that flow from them. i.e. rights and duties
>And the goal of contrahendi law is to provide a legal framework within which
people can transact business and exchange resources secure in the knowledge
that the law will uphold their agreements.
what are the 5 requirements for a valid contract? - accurate answers-
COCAFOLEPOCE
1. Contractual capacity: parties must have capacity to contract
2. Formalities: where the agreement is required to be in a certain form
(writing and signed), the formalities must be observed
3. Legality: the agreement must be lawful
4. Possibility: the obligations undertaken must be capable of performance
5. Certainty: agreement must have a definite or determinable content, so that
the obligations can be ascertained and enforced
,what must also be present when discussing the requirements for a valid
contract? - accurate answers-1. consensus: meeting of minds on all material
aspects
2. animus contrahendi: serious intention to create legally enforceable
obligations.
what is the nature and characteristics of a valid contract? - accurate answers-
>A valid contract is a juristic act- "an act to which the law attaches
consequences intended by the parties."
> A valid contract is bilateral- there must be at least 2 parties
-to give something (dare)
-to do something (focere)
-refrain from doing something (non forcere)
Does South African law recognize a unilateral promise as binding? - accurate
answers-No.
what are the key points from the requirements of a valid contract? - accurate
answers-1. Most valid contracts entails reciprocity- are party's performance is
owed in exchange for the others performance
2. A valid contract can be oral or in writing- although recommended to reduce
them to writing because oral is difficult to prove.
3. A valid contract need not have a name.
compare the laws of contract to other branches of the law of obligation -
accurate answers-the law of contract forms part of private law; specifically the
law of obligation.
what is the concept of obligation? - accurate answers->An obligation is a legal
bond between two or more parties, obliging the one (the debtor) to either
give, do or refrain from doing something to or for the other (the creditor).
>Obligation therefore comprises of a right and a corresponding duty i.e. the
right of a creditor to demand performance by the debtor (owes) and the duty
of the debtor to make performance.
>The right created by an obligation is a personal right. i.e. enforceable against
a particular person
, >unlike a real right, ownership, which is enforceable against the whole world.
what are the two types of obligations? - accurate answers->Natural:
obligations can be natural, creating a moral relationship which has some legal
effect but can't be enforced i.e. Gambling agreement.
>Civil: obligations can be civil, creating a legal relationship which has legal
effect and is consequently enforceable by a certain in a court of law. i.e.
agreement of sale.
what are the three laws of obligation? - accurate answers->Contract:
An Agreement entered into by 2 or more people with the intention of creating
a legal obligation.
>Delict:
A wrongful and culpable act that causes harm/ damage to a person,
personality or property.
>Unjustified enrichment:
Benefits that have been conferred upon a party at the expense of another
without a recognizable legal ground for the transfer of the benefit
differentiate or contrast the concepts of contract, enrichment and delict -
accurate answers->Contract:
* What creates obligation: Agreements creates obligation.
*What does it lead to: Contracts leads to the parties willingly fulfilling
obligations
*Remedy sekked or how does obligation end: performance or non-
performance terminates obligations.
*Source of the obligation: Self- imposed
>Enrichment:
* What creates obligation: Law creates the obligation
*What does it lead to: Unjustified increases in the estate of one the parties at
the expense of the other and leads to obligation.
*Remedy sekked or how does obligation end: restitution for the enrichment or
the return of enrichment.
*Source of the obligation: Imposed by law
Solutions.
Apply the three different types of impossibility that may
be applicable to a contract, noting the consequences of each
type of impossibility - accurate answers-• Subjective impossibility - a
SPECIFIC PARTY is unable to perform not anyone else
• Objective impossibility - NOBODY is able to perform
What is the difference between an agreement and a contract? - accurate
answers-Agreement:
1. An agreement is the act of coming to a mutual decision or arrangement
2. parties are bound only in honor and not in law; no intention for legal
obligation
Contract:
1. A contract is an agreement entered into by 2 or more parties with the
intention of creating a legal obligation recognized as binding in law.
what does Animus contrahendi mean? - accurate answers-serious intention to
create legally enforceable obligations.
emphasize on the phrase "legally binding agreements that are not contracts" -
accurate answers-1. Some binding contracts are not agreements because the
intention behind making that agreement may not be able to create obligations.
2. Some agreements destroy obligations, or honour them by transferring
rights
what are the legally binding agreements that are not contracts: - accurate
answers-1. Obligatory agreements: creates obligations- sale and lease
contracts
2. Absolving agreements takes away or destroys obligations
3. Real/ transfer agreements: a transferring of rights takes place. (Not a
contract, only a transfer of rights agreement)
explain legally binding agreements that are more than just contracts. -
accurate answers-some legally binding agreements that create obligations
cannot be regarded as just contracts, as they contain elements that separate
them in a different category.
,describe marriage in the context of legally binding agreements that are more
than just agreements. - accurate answers-1. Sui generis agreement (means of
its own kind or in class of itself)
2. Gives rise to a relationship that confers on the parties a status of a public
character
describe judgment by consent in relation to legally binding agreements that
are more than just agreements. - accurate answers-1. Parties can have a
settlement agreement and then ask the court to give judgement to give effect
to their agreement.
2. Has dual character:
>Firstly, it becomes a judicial act that is backed by the force of the law and is
enforceable like any other court judgement.
>Secondly, it remains a binding contract between the parties to it despite it
being backed by court.
what are the key things to remember in relation to the notion and nature of a
contract? - accurate answers->The law of contract is thus a body of legal rules
relating to the conclusion of agreements that have animus contrahendi and
consequences that flow from them. i.e. rights and duties
>And the goal of contrahendi law is to provide a legal framework within which
people can transact business and exchange resources secure in the knowledge
that the law will uphold their agreements.
what are the 5 requirements for a valid contract? - accurate answers-
COCAFOLEPOCE
1. Contractual capacity: parties must have capacity to contract
2. Formalities: where the agreement is required to be in a certain form
(writing and signed), the formalities must be observed
3. Legality: the agreement must be lawful
4. Possibility: the obligations undertaken must be capable of performance
5. Certainty: agreement must have a definite or determinable content, so that
the obligations can be ascertained and enforced
,what must also be present when discussing the requirements for a valid
contract? - accurate answers-1. consensus: meeting of minds on all material
aspects
2. animus contrahendi: serious intention to create legally enforceable
obligations.
what is the nature and characteristics of a valid contract? - accurate answers-
>A valid contract is a juristic act- "an act to which the law attaches
consequences intended by the parties."
> A valid contract is bilateral- there must be at least 2 parties
-to give something (dare)
-to do something (focere)
-refrain from doing something (non forcere)
Does South African law recognize a unilateral promise as binding? - accurate
answers-No.
what are the key points from the requirements of a valid contract? - accurate
answers-1. Most valid contracts entails reciprocity- are party's performance is
owed in exchange for the others performance
2. A valid contract can be oral or in writing- although recommended to reduce
them to writing because oral is difficult to prove.
3. A valid contract need not have a name.
compare the laws of contract to other branches of the law of obligation -
accurate answers-the law of contract forms part of private law; specifically the
law of obligation.
what is the concept of obligation? - accurate answers->An obligation is a legal
bond between two or more parties, obliging the one (the debtor) to either
give, do or refrain from doing something to or for the other (the creditor).
>Obligation therefore comprises of a right and a corresponding duty i.e. the
right of a creditor to demand performance by the debtor (owes) and the duty
of the debtor to make performance.
>The right created by an obligation is a personal right. i.e. enforceable against
a particular person
, >unlike a real right, ownership, which is enforceable against the whole world.
what are the two types of obligations? - accurate answers->Natural:
obligations can be natural, creating a moral relationship which has some legal
effect but can't be enforced i.e. Gambling agreement.
>Civil: obligations can be civil, creating a legal relationship which has legal
effect and is consequently enforceable by a certain in a court of law. i.e.
agreement of sale.
what are the three laws of obligation? - accurate answers->Contract:
An Agreement entered into by 2 or more people with the intention of creating
a legal obligation.
>Delict:
A wrongful and culpable act that causes harm/ damage to a person,
personality or property.
>Unjustified enrichment:
Benefits that have been conferred upon a party at the expense of another
without a recognizable legal ground for the transfer of the benefit
differentiate or contrast the concepts of contract, enrichment and delict -
accurate answers->Contract:
* What creates obligation: Agreements creates obligation.
*What does it lead to: Contracts leads to the parties willingly fulfilling
obligations
*Remedy sekked or how does obligation end: performance or non-
performance terminates obligations.
*Source of the obligation: Self- imposed
>Enrichment:
* What creates obligation: Law creates the obligation
*What does it lead to: Unjustified increases in the estate of one the parties at
the expense of the other and leads to obligation.
*Remedy sekked or how does obligation end: restitution for the enrichment or
the return of enrichment.
*Source of the obligation: Imposed by law
