MRL3701 Exam Pack 2025 [Latest Questions and Verified Answers] ||
Mercantile Law Study Guide
Description:
MRL3701 Exam Pack updated for 2025 with verified questions and answers.
Covers mercantile law and commercial legal practices.
Keywords:
MRL3701 exam pack 2025
mercantile law study guide
MRL3701 verified answers
commercial law exam prep
MRL3701 exam questions
Part 1: General Principles of Contract Law
1. What are the five essential elements for a valid contract in South African
law?
A) Consensus, legality, physical possibility, formalities, and a joke.
B) Consensus, capacity, legality, physical possibility of performance, and certainty.
,C) An offer, a handshake, payment, legality, and a written document.
D) Intention, capacity, a witness, legality, and certainty.
2. The case of Bloom v The American Swiss Watch Company established the
principle regarding:
A) The right to claim for breach of contract.
B) The "meeting of the minds" or true agreement.
C) That an offer can be accepted by performing an act without notification.
D) The requirement for written contracts.
3. An invitation to treat is best described as:
A) A firm offer that is open for acceptance.
B) An indication that a person is willing to negotiate or receive offers.
C) The final acceptance of a contract.
D) A legally binding promise.
4. In which scenario is a contract uberrimae fidei (of the utmost good faith)
most likely required?
A) The sale of a loaf of bread.
B) An insurance contract.
C) A lease agreement for an apartment.
D) An employment contract for a cashier.
,5. The exceptio non adimpleti contractus is a defence meaning:
A) The contract was illegal from the start.
B) The contract is too vague to enforce.
C) One party is not obliged to perform because the other party has not performed.
D) The party claiming was mistaken about the terms.
6. A voetstoots clause in a contract of sale protects the seller from liability for:
A) Fraudulent misrepresentations.
B) Patent defects and latent defects that the seller was unaware of.
C) Any and all defects, even those the seller knowingly concealed.
D) Breaches of warranty.
7. What is the primary effect of a valid mora debitoris (debtor's delay)?
A) The contract is automatically cancelled.
B) The creditor is excused from performing.
C) The debtor is liable for any resulting damages and the risk of accidental
performance passes to the debtor.
D) The debtor is granted an extension automatically.
8. The remedy of specific performance is:
A) Always available as a right to the aggrieved party.
, B) An order from the court compelling a party to perform their obligations as per
the contract.
C) A monetary award for damages.
D) Only available if the contract is cancelled.
9. A resolutive condition in a contract:
A) Suspends the operation of the obligations until an uncertain future event occurs.
B) Terminates the contract upon the occurrence of an uncertain future event.
C) Makes the contract void from the beginning.
D) Is always implied by law.
10. The par delictum rule states that:
A) Both parties to an illegal contract can claim restitution.
B) Where both parties are equally at fault, the court will generally not assist either.
C) Only the innocent party can claim damages.
D) Illegal contracts are always enforceable.
Part 2: Specific Contracts (Sale, Lease, Agency)
Mercantile Law Study Guide
Description:
MRL3701 Exam Pack updated for 2025 with verified questions and answers.
Covers mercantile law and commercial legal practices.
Keywords:
MRL3701 exam pack 2025
mercantile law study guide
MRL3701 verified answers
commercial law exam prep
MRL3701 exam questions
Part 1: General Principles of Contract Law
1. What are the five essential elements for a valid contract in South African
law?
A) Consensus, legality, physical possibility, formalities, and a joke.
B) Consensus, capacity, legality, physical possibility of performance, and certainty.
,C) An offer, a handshake, payment, legality, and a written document.
D) Intention, capacity, a witness, legality, and certainty.
2. The case of Bloom v The American Swiss Watch Company established the
principle regarding:
A) The right to claim for breach of contract.
B) The "meeting of the minds" or true agreement.
C) That an offer can be accepted by performing an act without notification.
D) The requirement for written contracts.
3. An invitation to treat is best described as:
A) A firm offer that is open for acceptance.
B) An indication that a person is willing to negotiate or receive offers.
C) The final acceptance of a contract.
D) A legally binding promise.
4. In which scenario is a contract uberrimae fidei (of the utmost good faith)
most likely required?
A) The sale of a loaf of bread.
B) An insurance contract.
C) A lease agreement for an apartment.
D) An employment contract for a cashier.
,5. The exceptio non adimpleti contractus is a defence meaning:
A) The contract was illegal from the start.
B) The contract is too vague to enforce.
C) One party is not obliged to perform because the other party has not performed.
D) The party claiming was mistaken about the terms.
6. A voetstoots clause in a contract of sale protects the seller from liability for:
A) Fraudulent misrepresentations.
B) Patent defects and latent defects that the seller was unaware of.
C) Any and all defects, even those the seller knowingly concealed.
D) Breaches of warranty.
7. What is the primary effect of a valid mora debitoris (debtor's delay)?
A) The contract is automatically cancelled.
B) The creditor is excused from performing.
C) The debtor is liable for any resulting damages and the risk of accidental
performance passes to the debtor.
D) The debtor is granted an extension automatically.
8. The remedy of specific performance is:
A) Always available as a right to the aggrieved party.
, B) An order from the court compelling a party to perform their obligations as per
the contract.
C) A monetary award for damages.
D) Only available if the contract is cancelled.
9. A resolutive condition in a contract:
A) Suspends the operation of the obligations until an uncertain future event occurs.
B) Terminates the contract upon the occurrence of an uncertain future event.
C) Makes the contract void from the beginning.
D) Is always implied by law.
10. The par delictum rule states that:
A) Both parties to an illegal contract can claim restitution.
B) Where both parties are equally at fault, the court will generally not assist either.
C) Only the innocent party can claim damages.
D) Illegal contracts are always enforceable.
Part 2: Specific Contracts (Sale, Lease, Agency)
