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CLA1502 Assignment 1 (COMPLETE ANSWERS) Semester 1 2026 - DUE March 2026

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CLA1502 Assignment 1 (COMPLETE ANSWERS) Semester 1 2026 - DUE March 2026; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.8.1..2.7.8..3.3.7.2... Ensure your success with us. .. QUESTION 1 .. 3 1.1 Discuss the common-law right of the purchaser to be protected by the seller against eviction. In your answer you must include an example of this common-law right. (6) . 3 1.2 Discuss the requirements that must be met before the transfer of ownership in movables can take place. (4) 4 ________________________________________ QUESTION 2 .. 5 3.1 What type of insurance covers theft and accidental damage? (1) .. 5 3.2 What type of insurance is life insurance? (1) .. 5 3.3 Can Roger insure his Mercedes Benz C200 with more than one insurance company? Provide reasons for your answer. (3) .. 6 3.4 During his pre-contractual statement with ABC Insurance Brokers, Roger claims to be in very good health and states that he does not have any chronic conditions, even though he actually suffers from high blood pressure and high cholesterol. Explain to Roger what the duty of good faith in insurance contracts entails and what the possible consequences of his submission can have on the validity of his life insurance contract.

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CLA1502
Assignment 1 Semester 1 2026
Unique number:
Due Date: 2026



QUESTION 1

1.1.

Under South African common law, a seller in a contract of sale gives an implied undertaking
that the purchaser will not be disturbed in her possession and enjoyment of the merx by a
third party who has a better legal title to the property. This undertaking exists automatically
in every contract of sale and does not need to be expressly stated by the parties (Kelbrick et
al., 2020).

This implied undertaking is known as the seller’s warranty against eviction. It means that
the seller guarantees that the purchaser will have undisturbed and lawful possession of the
thing sold. If a third party with a superior legal right claims the merx, the seller has a duty to
assist the purchaser in defending that claim (Kelbrick et al., 2020).

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QUESTION 1

1.1.

Under South African common law, a seller in a contract of sale gives an implied
undertaking that the purchaser will not be disturbed in her possession and enjoyment of
the merx by a third party who has a better legal title to the property. This undertaking
exists automatically in every contract of sale and does not need to be expressly stated by
the parties (Kelbrick et al., 2020).

This implied undertaking is known as the seller’s warranty against eviction. It means that
the seller guarantees that the purchaser will have undisturbed and lawful possession of
the thing sold. If a third party with a superior legal right claims the merx, the seller has a
duty to assist the purchaser in defending that claim (Kelbrick et al., 2020).

If the purchaser is sued by a third party claiming ownership, the purchaser must notify the
seller and call upon the seller to defend the action. The seller is then obliged to step in and
assist in protecting the purchaser’s possession. If the seller fails to assist and the
purchaser is evicted because the third party proves a better title, the seller is in breach of
the warranty against eviction (Kelbrick et al., 2020).

Even where the seller does not assist, the purchaser must still put up a proper and
competent defence against the third party’s claim. If the purchaser fails to defend the claim
properly, the seller may not be held liable (Kelbrick et al., 2020).




1.2

In South African law, ownership of movable property does not pass automatically upon
conclusion of a contract of sale. Certain legal requirements must be satisfied before
ownership can be transferred.

Firstly, there must be a valid underlying contract, such as a valid contract of sale. This
provides the legal cause for the transfer of ownership. Without a valid agreement,
ownership cannot pass because there would be no lawful basis for the transfer (Kelbrick et
al., 2020).

Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.

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