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CLA1502 Assignment 1 (QUALITY ANSWERS) Semester 1 2026

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This document provides detailed workings, clear explanations, and well-structured solutions for the CLA1502 Assignment 1 (QUALITY ANSWERS) Semester 1 2026 - For assistance call or Whats-App us on 0.8.1..2.7.8..3.3.7.2.... 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



This document includes:

 Helpful answers and guidelines
 Detailed explanations and/ or calculations
 References




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, QUESTION 1

1.1.

Under South African common law, the seller 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 protection operates
automatically in every contract of sale and does not have to be expressly included by
the parties (Kelbrick et al., 2020).

This implied undertaking is known as the seller’s warranty against eviction. The
warranty means that if a third party with a superior legal claim deprives the
purchaser of the merx, either wholly or partially, the seller is obliged to assist the
purchaser and protect her rights (Kelbrick et al., 2020). Eviction may occur when the
purchaser is legally dispossessed of the property by someone who proves a stronger
right of ownership.

If the purchaser is threatened with eviction, she must notify the seller and allow the
seller the opportunity to defend the claim. The seller must then take steps to protect
the purchaser’s possession. Should the seller fail to assist, the purchaser is still
required to raise a proper and competent defence against the third party’s claim. If
eviction ultimately takes place and the seller did not fulfil his obligation, the seller will
be regarded as having breached the warranty against eviction (Kelbrick et al., 2020).

Where eviction occurs, the purchaser may cancel the contract and claim restitution
of the purchase price, as well as damages suffered as a result of the eviction,
provided the requirements for such a claim are met (Kelbrick et al., 2020).

1.2

In South African law, the transfer of ownership of movables does not occur merely
because a contract of sale has been concluded. Certain legal requirements must first
be satisfied.

Firstly, there must be a valid underlying legal cause (iusta causa), such as a valid
contract of sale, donation or exchange. The agreement must be legally enforceable
and comply with the general requirements of a valid contract (Kelbrick et al., 2020).


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