LPL4801 - MCQ Exampack

OCTOBER/NOVEMBER 2009 CONTRACT OF SALE QUESTION 1 Which one of the following statements is CORRECT? √(1)The undertaking to deliver a thing and the undertaking to pay a price are the two essentialia of a contract of sale. (2) The undertaking to deliver a thing by the owner and the undertaking to pay a price are the two essentialia of a contract of sale. (3) A valid contract of sale only comes into being once the contract of sale is perfecta. (4) A valid contract only comes into being once the purchase price is paid and the thing sold is delivered. (5) None of the above. (2) QUESTION 2 John orders a dining room suite from Mike for R15 000. The parties agree that Mike will make the suite from stinkwood which John will provide. This is an example of: (1) a locatio conductio rei speratae. (2) an emptio rei speratae. (3) an emptio spei √ (4)a locatio conductio operis. (5) a locatio conductio operarum. (2) QUESTION 3 John orders a suit from his tailor, who quotes John an amount of R3 000 to make the suit. This is an example of: (1) a locatio conductio rei speratae. √ (2)an emptio rei speratae. (3) an emptio spei (4) a locatio conductio operis. (5) a locatio conductio operarum. (2) QUESTION 4 Which case would you consult to determine which type(s) of contract John concluded in questions 2 and 3? (1) Minister van Landbou Tegniese Dienste v Scholtz 1971 (3) SA 188 (A). (2) Kroonstad Westelike Boere-Ko-operatiewe Vereniging Bpk v Botha and Another 1964 (3) SA 561 (A) Lpl4801 mcq GSM 2 √ (3)SA Wood Turning Mills (Pty) Ltd v Price Bros (Pty) Ltd 1962 (4) SA 263 (T) (4) Dibley v Furter 1961 (4) SA 73 (C). (5) Phame (Pty) Ltd v Paizes 1973 (3) SA 397 (A). (2) QUESTION 5 X (Pty) Ltd orders 10 Toyota Corolla 1.6 GLE vehicles from Toyota at R170 000 per vehicle. The vehicles are to be manufactured and delivered within six months. This is an example of: (a) an emptio rei speratae. (b) an emptio spei. (c) an emptio ad mensuram. (d) an alternative sale. (e) a generic sale. (1) (a) and (c). (2) (b) and (c). (3) (b) and (d). √ (4) (a) and (e). (5) (b) and (e). (2) QUESTION 6 Which one of the following statements on section 2(1) of the Alienation of Land Act 68 of 1981 is INCORRECT? (1) Signing a deed of alienation with initials is a valid signature. (2) A street address is sufficient to identify the land in a deed of alienation. (3) A term which only contains information need not be in writing in a deed of alienation. √ (4) A principal can validly ratify a deed of alienation which was entered into by a person who did not have the necessary written authority when he signed the deed of alienation. (5) The document in which authority is granted to an agent need apparently not be signed by the principal. (2) QUESTION 7 Which one of the following statements on the Alienation of Land Act 68 of 1981 is INCORRECT? (1) The doctrine of the undisclosed principal cannot find application in regard to the alienation of land. √ (2) When a company acts through its organs in purchasing land, the organs act as agents of the company and require written authority to act on behalf of the company. (3) Section 2 of the Act does not apply to sales of land by public auction. (4) Waiver of a right in a deed of alienation is not a variation of the deed and need not Lpl4801 mcq GSM 3 be in writing. (5) A cancelled deed of alienation may be informally revived by the parties; that is to say it need not be in writing. (2) QUESTION 8 Section 29(A) of the Alienation of Land Act 68 of 1981 is INCORRECT? (1) Section 29(A) does not apply where the purchase price of the land, or the price offered for the land, exceeds R250 000, or such higher amount as the Minister may prescribe. (2) Section 29(A) does not apply where the purchaser or prospective purchaser is a trust or a person other than a natural person. (3) Section 29(A) does not apply where the purchaser has purchased the land at a publicly advertised auction. √ (4) Section 29(A) does not apply where the purchaser and seller previously entered into a deed of alienation in respect of the same land. (5) Section 29(A) does not apply where the purchaser purchases the land by exercising an option which was open for exercise for a period of at least 5 days. (2) (2) THE FOLLOWING FACTS APPLY TO QUESTIONS 9-11 John sells his motor vehicle to Mary for R50 000, to be delivered to her at the end of the month. Mary is, however, concerned that in the present economic climate she may be retrenched soon. The parties agree that should she be retrenched within three months of conclusion of the contract, the contract will lapse and they will return the performances. While the vehicle is still in his possession, John is involved in a collision with the vehicle when he speeds through a red traffic light (robot). The cost of repairs to the vehicle is R20 000. John tenders delivery of the damaged vehicle to Mary at the end of the month. QUESTION 9 Which one of the following statements is CORRECT? (1) The sale is not perfecta because it is subject to a suspensive condition. (2) The sale is perfecta even though it is subject to a suspensive condition. (3) The sale is not perfecta because it is subject to a resolutive condition. √ (4) The sale is perfecta even though it is subject to a resolutive condition. (5) None of the above (2) QUESTION 10 If the contract had contained a term giving Mary the right to return the vehicle after a month if she is not satisfied with it we are dealing with: (1) a contractual term which is contra bonos mores and unenforceable.