Module: CLA1501 Commercial Law
Questions and answers to study
,Assignment 1: Second semester
QUESTION 1
Briefly differentiate between the ratio decidendi and the obiter dictum of a judgement. (4)
The ratio decidendi is the most important part of the judgment. It is the “reason for the decision” or the
conclusion reached by the judge after examining the material facts of the case. It is the ratio decidendi
which is the subject of the stare decisis doctrine.
The obiter dictum is any statement by the judge that falls outside the ratio decidendi and is not binding
on subsequent courts.
QUESTION 2
(b) Name and briefly discuss the two methods by which an original right of ownership may be
established. (5)
The two methods of acquiring an original right of ownership are:
(a) Occupation. This applies where one occupies or seizes the property belonging to no one with
the intention of becoming its owner. Such person will then acquire the right of ownership.
(b) Prescription. This applies where a possessor may become the owner of the property by means
of prescription if he or she has possessed the property openly as if he or she were the owner
for an uninterrupted period of 30 years.
QUESTION 3
List and briefly describe the two categories of legal subjects that are recognised by South African law.
(4)
1) Natural persons - a human being, from babies to adults. They all have rights.
2) Juristic persons - a legal subject (not a human being - a company i.e. Pick n Pay, university i.e.
UNISA or municipality i.e. Sedibeng municipality)
A legal subject is a human being or entity subject to the law. The law recognises two categories of
persons, namely natural persons and juristic persons. A natural person refers to a human being, while
a juristic person refers to a legal subject other than a human being, for instance, a company,
university or municipality.
QUESTION 4
Match each Roman letter in Column B with the correct alphabet in Column A. (5)
, a) (v)
b) (i)
c) (ii)
d) (iii)
e) (iv)
QUESTION 5
Indicate whether the following statement is TRUE or FALSE. Give reasons for your answer.
John, a 13 year old boy can undergo an HIV test without his guardian’s consent. (4)
TRUE – There are several statutory exceptions to the general rule that a minor may only act with
assistance from his or her guardian.
For instance, the Children’s Act 38 of 2005 provides that a child over the age of twelve may consent
to an HIV test, if he or she is of sufficient maturity and has the mental capacity to understand the
benefits, risks, social and other implications of an HIV test. John has turned twelve already. Thus,
John can lawfully undergo the test without his guardian’s consent..
QUESTION 6
Moloko wants to sell her 2012 BMW 320i to anyone who is interested in buying the car. She then
decides to advertise the car for sale in the local newspaper so that she can attract as many potential
buyers as possible. Advise her whether such an advertisement placed in the newspaper is a VALID
offer. (3)
This is not a VALID offer as the advertisement is an invitation to do business. If someone is interested
in buying the car they then contact her with an offer and only then can a contract of sale be drawn up.
(This does not constitute a valid offer.(1) The general rule is that an advertisement in itself does not
constitute an offer but an invitation to do business. Any member of the public who reacts to Moloko’s
invitation is making an offer to Moloko to buy the advertised car. If Moloko accepts the offer,
consensus is reached and a contract of sale arises.)
Total: [25]
, Assignment 2: Second Semester
QUESTION 1
Which ONE of the following sources will a South African lawyer consult on Roman law?
1 Constitution of the Republic of South Africa, 1996
2 Customary law
3 Corpus Iuris Civilis
4 South African statutory law (2).
Answer: 3 – Corpus luris Civilis. The Corpus Iuris Civilis is a codification of Roman law. This is the
primary source when our courts revert to Roman law to solve a legal problem.
QUESTION 2
Mandla picks up a guitar which someone else has thrown away, and keeps it for himself as it no
longer belongs to any other person. He becomes the owner of the guitar.
Through which ONE of the following original methods did Mandla acquire ownership?
1 Occupation
2 Prescription
3 Delivery
4 Registration
Answer: 1 - Occupation. If a person seizes property belonging to no-one, with the intention of
becoming its owner, that person acquires the right of ownership over the property. Because the guitar
had already been thrown away, no-one was the owner thereof when Mandla appropriated it. This
method of acquiring ownership is called occupation, which is one of the two original methods of
acquiring ownership.
QUESTION 3
Contracts differ from other types of agreements.
Which ONE of the following statements is CORRECT?
1 A contract cannot be entered into by more than two parties.
2 An agreement is a particular type of contract.
3 An agreement is a source of legal obligations.
4 A contract creates legally enforceable obligations. (2)
Answer: 4 - A contract creates legally enforceable obligations. A contract is an agreement concluded
with the serious intention of creating legally enforceable obligations.
QUESTION 4
Which ONE of the following is NOT a requirement for the conclusion of a valid contract?
1 The contract must be permitted by law.
2 Each party to the contract must have capacity to act.
3 There must be consensus between the parties.
Questions and answers to study
,Assignment 1: Second semester
QUESTION 1
Briefly differentiate between the ratio decidendi and the obiter dictum of a judgement. (4)
The ratio decidendi is the most important part of the judgment. It is the “reason for the decision” or the
conclusion reached by the judge after examining the material facts of the case. It is the ratio decidendi
which is the subject of the stare decisis doctrine.
The obiter dictum is any statement by the judge that falls outside the ratio decidendi and is not binding
on subsequent courts.
QUESTION 2
(b) Name and briefly discuss the two methods by which an original right of ownership may be
established. (5)
The two methods of acquiring an original right of ownership are:
(a) Occupation. This applies where one occupies or seizes the property belonging to no one with
the intention of becoming its owner. Such person will then acquire the right of ownership.
(b) Prescription. This applies where a possessor may become the owner of the property by means
of prescription if he or she has possessed the property openly as if he or she were the owner
for an uninterrupted period of 30 years.
QUESTION 3
List and briefly describe the two categories of legal subjects that are recognised by South African law.
(4)
1) Natural persons - a human being, from babies to adults. They all have rights.
2) Juristic persons - a legal subject (not a human being - a company i.e. Pick n Pay, university i.e.
UNISA or municipality i.e. Sedibeng municipality)
A legal subject is a human being or entity subject to the law. The law recognises two categories of
persons, namely natural persons and juristic persons. A natural person refers to a human being, while
a juristic person refers to a legal subject other than a human being, for instance, a company,
university or municipality.
QUESTION 4
Match each Roman letter in Column B with the correct alphabet in Column A. (5)
, a) (v)
b) (i)
c) (ii)
d) (iii)
e) (iv)
QUESTION 5
Indicate whether the following statement is TRUE or FALSE. Give reasons for your answer.
John, a 13 year old boy can undergo an HIV test without his guardian’s consent. (4)
TRUE – There are several statutory exceptions to the general rule that a minor may only act with
assistance from his or her guardian.
For instance, the Children’s Act 38 of 2005 provides that a child over the age of twelve may consent
to an HIV test, if he or she is of sufficient maturity and has the mental capacity to understand the
benefits, risks, social and other implications of an HIV test. John has turned twelve already. Thus,
John can lawfully undergo the test without his guardian’s consent..
QUESTION 6
Moloko wants to sell her 2012 BMW 320i to anyone who is interested in buying the car. She then
decides to advertise the car for sale in the local newspaper so that she can attract as many potential
buyers as possible. Advise her whether such an advertisement placed in the newspaper is a VALID
offer. (3)
This is not a VALID offer as the advertisement is an invitation to do business. If someone is interested
in buying the car they then contact her with an offer and only then can a contract of sale be drawn up.
(This does not constitute a valid offer.(1) The general rule is that an advertisement in itself does not
constitute an offer but an invitation to do business. Any member of the public who reacts to Moloko’s
invitation is making an offer to Moloko to buy the advertised car. If Moloko accepts the offer,
consensus is reached and a contract of sale arises.)
Total: [25]
, Assignment 2: Second Semester
QUESTION 1
Which ONE of the following sources will a South African lawyer consult on Roman law?
1 Constitution of the Republic of South Africa, 1996
2 Customary law
3 Corpus Iuris Civilis
4 South African statutory law (2).
Answer: 3 – Corpus luris Civilis. The Corpus Iuris Civilis is a codification of Roman law. This is the
primary source when our courts revert to Roman law to solve a legal problem.
QUESTION 2
Mandla picks up a guitar which someone else has thrown away, and keeps it for himself as it no
longer belongs to any other person. He becomes the owner of the guitar.
Through which ONE of the following original methods did Mandla acquire ownership?
1 Occupation
2 Prescription
3 Delivery
4 Registration
Answer: 1 - Occupation. If a person seizes property belonging to no-one, with the intention of
becoming its owner, that person acquires the right of ownership over the property. Because the guitar
had already been thrown away, no-one was the owner thereof when Mandla appropriated it. This
method of acquiring ownership is called occupation, which is one of the two original methods of
acquiring ownership.
QUESTION 3
Contracts differ from other types of agreements.
Which ONE of the following statements is CORRECT?
1 A contract cannot be entered into by more than two parties.
2 An agreement is a particular type of contract.
3 An agreement is a source of legal obligations.
4 A contract creates legally enforceable obligations. (2)
Answer: 4 - A contract creates legally enforceable obligations. A contract is an agreement concluded
with the serious intention of creating legally enforceable obligations.
QUESTION 4
Which ONE of the following is NOT a requirement for the conclusion of a valid contract?
1 The contract must be permitted by law.
2 Each party to the contract must have capacity to act.
3 There must be consensus between the parties.
