PVL3702 EXAM PACK
2025
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|44660598
LAW OF CONTRACT
STUDY UNIT 1
1. Distinguish between a contract and unjustified enrichment. (5)
A contract is an agreement entered into with the intention of creating an obligation or obligations. A
contract is therefore a fact, an event. From a contract, arises an obligation or obligations.
Undue enrichment is a principle of our law that no-one should unjustifiedly be enriched at the
expense of another.
Here undue enrichment means that there is no valid legal ground for the one's obtaining a benefit at
the expense of the other.
2. State the requirements for the formation of a valid contract. (5)
(1) There must be agreement (consensus) or ostensible agreement between the parties.
(2) The parties must have capacity to act.
(3) The performance must be possible at the time the contract is entered into.
(4) The conclusion of the contract, the performance and the object of the contracting parties must
be lawful (the contract must in other words be legal).
(5) Constitutive formalities must be complied with.
3. Distinguish civil obligations from natural obligations. (5)
Whereas a civil obligation may be enforced directly by recourse to a court of law, a natural
obligation may not.
A natural obligation does, however, have some legal effect:
, lOMoARcPSD|44660598
it is a legal relationship as opposed to a merely moral relationship, and just as in the case of a civil
obligation, it can be validly discharged, is capable of indirect enforcement by way of set-off and can
serve as the basis of an accessory contract such as suretyship.
An example of a natural obligation is a contractual obligation that requires a minor who acted
without the necessary consent, to perform something, or an obligation which requires the payment
of a wagering or gambling debt.
4. Distinguish between a contract and an obligation. (5)
A contract is an agreement entered into with the intention of creating an obligation or obligations. A
contract is therefore a fact, an event. A contract is, however, not a simple fact but rather a legal fact,
that is a fact or set of facts to which the law attaches consequences. Obligations thus arise from legal
facts.
From a contract, arises an obligation or obligations. An obligation is a juristic bond in terms of which
the party or parties on the one side have a right to a performance and the party or parties on the
other side have a duty to render that performance. In other words it is a legal relationship between
two or more legal subjects.
5. Distinguish between agreements creating obligations, agreements extinguishing debts and real
agreements. (5)
• Agreements creating obligations (contracts)
Agreements of this nature are nothing but contracts. This is by far the most important of the three
agreements
• Agreements extinguishing a debt
An agreement extinguishing a debt is one in terms of which an obligation is terminated, for example
release or discharge. Discharge is achieved by the debtor's performing what he has undertaken to
perform with the consequence that the obligation concerned is terminated in a natural way.
, lOMoARcPSD|44660598
• Real agreements
A real agreement is an agreement whereby a right is transferred. Real rights, for example ownership,
are transferred by delivery (movable property) or registration.
• Overlapping of obligationary, extinguishing and real agreements
Obligationary, extinguishing and real agreements may sometimes overlap to a greater or lesser
extent.
For example, suppose D walks into a cafe, puts his R5 on the counter and points to a packet of
sweets. The proprietor takes his money and hands over the sweets.
6. Explain the difference between a void contract and a voidable contract. (5)
Misrepresentation, duress or undue influence, can only render a contract voidable, because in such
a case there is consensus, so that the contract cannot be void, but the consent has been obtained in
an improper manner, rendering the contract assailable.
A void contract creates no obligations.
A contract which is merely voidable does create obligations, and these obligations then exist until
the contracting party who has the election (choice) decides to terminate them.
He is not, however, obliged to terminate them and if he does not, the obligations continue to exist
unaffected.
STUDY UNIT 2 1.
2025
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:
, lOMoARcPSD|44660598
LAW OF CONTRACT
STUDY UNIT 1
1. Distinguish between a contract and unjustified enrichment. (5)
A contract is an agreement entered into with the intention of creating an obligation or obligations. A
contract is therefore a fact, an event. From a contract, arises an obligation or obligations.
Undue enrichment is a principle of our law that no-one should unjustifiedly be enriched at the
expense of another.
Here undue enrichment means that there is no valid legal ground for the one's obtaining a benefit at
the expense of the other.
2. State the requirements for the formation of a valid contract. (5)
(1) There must be agreement (consensus) or ostensible agreement between the parties.
(2) The parties must have capacity to act.
(3) The performance must be possible at the time the contract is entered into.
(4) The conclusion of the contract, the performance and the object of the contracting parties must
be lawful (the contract must in other words be legal).
(5) Constitutive formalities must be complied with.
3. Distinguish civil obligations from natural obligations. (5)
Whereas a civil obligation may be enforced directly by recourse to a court of law, a natural
obligation may not.
A natural obligation does, however, have some legal effect:
, lOMoARcPSD|44660598
it is a legal relationship as opposed to a merely moral relationship, and just as in the case of a civil
obligation, it can be validly discharged, is capable of indirect enforcement by way of set-off and can
serve as the basis of an accessory contract such as suretyship.
An example of a natural obligation is a contractual obligation that requires a minor who acted
without the necessary consent, to perform something, or an obligation which requires the payment
of a wagering or gambling debt.
4. Distinguish between a contract and an obligation. (5)
A contract is an agreement entered into with the intention of creating an obligation or obligations. A
contract is therefore a fact, an event. A contract is, however, not a simple fact but rather a legal fact,
that is a fact or set of facts to which the law attaches consequences. Obligations thus arise from legal
facts.
From a contract, arises an obligation or obligations. An obligation is a juristic bond in terms of which
the party or parties on the one side have a right to a performance and the party or parties on the
other side have a duty to render that performance. In other words it is a legal relationship between
two or more legal subjects.
5. Distinguish between agreements creating obligations, agreements extinguishing debts and real
agreements. (5)
• Agreements creating obligations (contracts)
Agreements of this nature are nothing but contracts. This is by far the most important of the three
agreements
• Agreements extinguishing a debt
An agreement extinguishing a debt is one in terms of which an obligation is terminated, for example
release or discharge. Discharge is achieved by the debtor's performing what he has undertaken to
perform with the consequence that the obligation concerned is terminated in a natural way.
, lOMoARcPSD|44660598
• Real agreements
A real agreement is an agreement whereby a right is transferred. Real rights, for example ownership,
are transferred by delivery (movable property) or registration.
• Overlapping of obligationary, extinguishing and real agreements
Obligationary, extinguishing and real agreements may sometimes overlap to a greater or lesser
extent.
For example, suppose D walks into a cafe, puts his R5 on the counter and points to a packet of
sweets. The proprietor takes his money and hands over the sweets.
6. Explain the difference between a void contract and a voidable contract. (5)
Misrepresentation, duress or undue influence, can only render a contract voidable, because in such
a case there is consensus, so that the contract cannot be void, but the consent has been obtained in
an improper manner, rendering the contract assailable.
A void contract creates no obligations.
A contract which is merely voidable does create obligations, and these obligations then exist until
the contracting party who has the election (choice) decides to terminate them.
He is not, however, obliged to terminate them and if he does not, the obligations continue to exist
unaffected.
STUDY UNIT 2 1.
