2023
CLA1501 COMMERCIAL LAW 1A
REVISION QUESTIONS & ANSWERS
2023
BMSA TUTORS
MEL
,1. Which ONE of the options provided below will complete the sentence CORRECTLY?
Richard, who stays in Pretoria, buys six bottles of scarce red wine from Abram, the owner of a
prominent wine estate in Stellenbosch, at R140 a bottle. These bottles are to be transported to
Pretoria by a courier company. Richard has given security for the payment of the purchase
price. Richard acquires ownership of the six bottles of wine at the...
1 delivery of the six bottles of wine.
2 payment of the full purchase price.
3 conclusion of the contract of sale.
4 payment of the full purchase price after delivery of the six bottles of wine.
2. Rebecca goes to Bakone Café to buy a tin of fish. After taking the money, Wilfred, the shop
owner, takes the fish from the shelf behind him and gives it to Rebecca.
Which ONE of the following forms of delivery has taken place?
1 delivery with the shorthand
2 deliveries with the long hand
3 symbolic deliveries
4 actual deliveries
3. Jake, a motivational speaker, rents a room from Bushy to use as a consultation room. Jake and
Bushy agree about the rent but forget to discuss the date on which the rent must be paid. Jake’s
consultations go well for the first two weeks until Bushy’s son, Mawethu, brings some items into
the room alleging that his father gave him permission to use part of the room as a tuckshop.
Which ONE of the following statements is CORRECT?
1 Bushy has performed his duty to deliver the room to Jake by merely putting the room at
Jake’s disposal.
2 There is no contract of lease between Jake and Bushy because they did not agree about the
date of payment of the rent.
,3 There is a contract of lease between Jake and Bushy because they have agreed about
the rent to be paid by Jake.
4. Tshepo rents a flat from her friend Lettie. The lease is not for a fixed period and Tshepo has
to pay a monthly rental to Lettie. Since crime is high in the urban area, Tshepo installs a
security gate at the front door of the flat. A year after the commencement of the lease, Tshepo
becomes aware that Lettie no longer has a valid title to the flat.
Which ONE of the following statements regarding the termination of a contract of a lease is
CORRECT?
1 Although the installation of a security gate is a useful improvement, Tshepo will not be entitled
to remove it before she vacates the flat, since it is for the safety of future tenants.
2 Tshepo may terminate the contract of lease, since Lettie, who is the lessor, does not have
a valid title to the flat.
3 Tshepo may terminate the contract by giving Lettie notice of termination which will only
become effective if it comes to the actual knowledge of Lettie.
4 If Tshepo dies as a result of heart failure, the contract of lease between her and
Lettie will automatically terminate.
5. On his way home from work Brian is involved in a collision. He reports the accident to
his insurance company and they inform him that they choose to repair his car rather than
to compensate him. He also has to pay R1 000 because he bears a proportion of the loss
himself. The insurance company also informs him that he has no choice but to comply, as
these terms were agreed to in the insurance contract he concluded with the company two years
before.
Which ONE of the following statements reflects Brian's legal position CORRECTLY?
1 Even if the parties to the insurance contract agreed, the insurance company may not legally
oblige Brian to have the car repaired instead of compensating him, nor have him pay a certain
amount in order to bear a portion of the loss himself.
2 There is no principle in insurance law that allows the insurance company to have the
insured pay a certain amount in order to bear a portion of the loss himself.
3 There is no principle in insurance law that allows the insurance company to reserve the right to
decide to have the risk-object repaired, instead of compensating the insured.
, 4 If the parties to an insurance contract agreed thereto, the insurance company may have
the insured pay a certain amount in order to bear a portion of the loss himself and may
reserve the right to have the risk-object repaired, instead of compensating the insured.
6. A month after he applied for discharge from the Police Force as a result of depression, Tutu
took out a life and disability policy with Giant Life Insurance. When Tutu completed the proposal
form he answered “no” to the question whether he had suffered from depression at any stage
in his life. Tutu now wants to claim in terms of the policy.
Which ONE of the following statements is INCORRECT?
1 Giant Life Insurance may refuse to pay the claim because of Tutu’s misrepresentation.
2 Giant Life Insurance may terminate the contract because of non-disclosure by Tutu.
3 The p o l i c y is void because the misrepresentation was likely to have affected the
assessment of risk.
4 This life insurance policy is voidable because of the breach of the duty of good faith
by Tutu.
7. Lauren is desperate to get a job. She reads in the Daily News that Mrs Clinton is looking for
a new personal assistant. She contacts Mrs Clinton on the same day and Mrs Clinton
tells Lauren that she can start working on Monday. Conditions accompanying the
advertisement state that the prospective personal assistant will work on a voluntary basis
for the first two months.
Which ONE of the essentialia of the contract of employment is absent from the above set of
facts?
1 control by the employee
2 subordination of the employee
3 work for the employee
4 remuneration of the employee
8. While on his way to deliver wheat to the local co-operative society, Frederick, a driver who
works on Mr Pretorius’s farm, is involved in an accident. Manuel’s car is badly damaged as
a result of the accident caused by Frederick’s negligent driving. Manuel wants Mr Pretorius to
pay for the repairs to his car.
CLA1501 COMMERCIAL LAW 1A
REVISION QUESTIONS & ANSWERS
2023
BMSA TUTORS
MEL
,1. Which ONE of the options provided below will complete the sentence CORRECTLY?
Richard, who stays in Pretoria, buys six bottles of scarce red wine from Abram, the owner of a
prominent wine estate in Stellenbosch, at R140 a bottle. These bottles are to be transported to
Pretoria by a courier company. Richard has given security for the payment of the purchase
price. Richard acquires ownership of the six bottles of wine at the...
1 delivery of the six bottles of wine.
2 payment of the full purchase price.
3 conclusion of the contract of sale.
4 payment of the full purchase price after delivery of the six bottles of wine.
2. Rebecca goes to Bakone Café to buy a tin of fish. After taking the money, Wilfred, the shop
owner, takes the fish from the shelf behind him and gives it to Rebecca.
Which ONE of the following forms of delivery has taken place?
1 delivery with the shorthand
2 deliveries with the long hand
3 symbolic deliveries
4 actual deliveries
3. Jake, a motivational speaker, rents a room from Bushy to use as a consultation room. Jake and
Bushy agree about the rent but forget to discuss the date on which the rent must be paid. Jake’s
consultations go well for the first two weeks until Bushy’s son, Mawethu, brings some items into
the room alleging that his father gave him permission to use part of the room as a tuckshop.
Which ONE of the following statements is CORRECT?
1 Bushy has performed his duty to deliver the room to Jake by merely putting the room at
Jake’s disposal.
2 There is no contract of lease between Jake and Bushy because they did not agree about the
date of payment of the rent.
,3 There is a contract of lease between Jake and Bushy because they have agreed about
the rent to be paid by Jake.
4. Tshepo rents a flat from her friend Lettie. The lease is not for a fixed period and Tshepo has
to pay a monthly rental to Lettie. Since crime is high in the urban area, Tshepo installs a
security gate at the front door of the flat. A year after the commencement of the lease, Tshepo
becomes aware that Lettie no longer has a valid title to the flat.
Which ONE of the following statements regarding the termination of a contract of a lease is
CORRECT?
1 Although the installation of a security gate is a useful improvement, Tshepo will not be entitled
to remove it before she vacates the flat, since it is for the safety of future tenants.
2 Tshepo may terminate the contract of lease, since Lettie, who is the lessor, does not have
a valid title to the flat.
3 Tshepo may terminate the contract by giving Lettie notice of termination which will only
become effective if it comes to the actual knowledge of Lettie.
4 If Tshepo dies as a result of heart failure, the contract of lease between her and
Lettie will automatically terminate.
5. On his way home from work Brian is involved in a collision. He reports the accident to
his insurance company and they inform him that they choose to repair his car rather than
to compensate him. He also has to pay R1 000 because he bears a proportion of the loss
himself. The insurance company also informs him that he has no choice but to comply, as
these terms were agreed to in the insurance contract he concluded with the company two years
before.
Which ONE of the following statements reflects Brian's legal position CORRECTLY?
1 Even if the parties to the insurance contract agreed, the insurance company may not legally
oblige Brian to have the car repaired instead of compensating him, nor have him pay a certain
amount in order to bear a portion of the loss himself.
2 There is no principle in insurance law that allows the insurance company to have the
insured pay a certain amount in order to bear a portion of the loss himself.
3 There is no principle in insurance law that allows the insurance company to reserve the right to
decide to have the risk-object repaired, instead of compensating the insured.
, 4 If the parties to an insurance contract agreed thereto, the insurance company may have
the insured pay a certain amount in order to bear a portion of the loss himself and may
reserve the right to have the risk-object repaired, instead of compensating the insured.
6. A month after he applied for discharge from the Police Force as a result of depression, Tutu
took out a life and disability policy with Giant Life Insurance. When Tutu completed the proposal
form he answered “no” to the question whether he had suffered from depression at any stage
in his life. Tutu now wants to claim in terms of the policy.
Which ONE of the following statements is INCORRECT?
1 Giant Life Insurance may refuse to pay the claim because of Tutu’s misrepresentation.
2 Giant Life Insurance may terminate the contract because of non-disclosure by Tutu.
3 The p o l i c y is void because the misrepresentation was likely to have affected the
assessment of risk.
4 This life insurance policy is voidable because of the breach of the duty of good faith
by Tutu.
7. Lauren is desperate to get a job. She reads in the Daily News that Mrs Clinton is looking for
a new personal assistant. She contacts Mrs Clinton on the same day and Mrs Clinton
tells Lauren that she can start working on Monday. Conditions accompanying the
advertisement state that the prospective personal assistant will work on a voluntary basis
for the first two months.
Which ONE of the essentialia of the contract of employment is absent from the above set of
facts?
1 control by the employee
2 subordination of the employee
3 work for the employee
4 remuneration of the employee
8. While on his way to deliver wheat to the local co-operative society, Frederick, a driver who
works on Mr Pretorius’s farm, is involved in an accident. Manuel’s car is badly damaged as
a result of the accident caused by Frederick’s negligent driving. Manuel wants Mr Pretorius to
pay for the repairs to his car.
