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LJU4804 Assignment 2 (ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED

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Achieve a distinction with this comprehensive and well-organized set of LJU4804 Assignment 2 (ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED. Ensure accuracy and excellence in your submission!!!! Maria Petrus and John Paulus met at high school in Windhoek, Namibia in 1979. They got married in December 1982 while on holiday in Botswana. At the time of entering into the marriage, both Mr and Mrs Paulus were Namibian citizens and Mrs Paulus was domiciled in Namibia as well. Mr Paulus established a domicile of choice in Sheffield, England in 1980 when he assumed permanent employment at a steel factory. He was domiciled there at the time of concluding his marriage to Maria as well. Mr and Mrs Paulus stayed in England until 1990 when Mr Paulus obtained a full-time position at a factory in Rosslyn, South Africa. In January 1991, the parties immigrated to Pretoria, South Africa, and established a domicile there. Two children were born from the marriage and Mrs Paulus stayed at home to look after them. In 2017, Mrs Paulus instituted divorce proceedings against Mr Paulus in the North Gauteng High Court. 1.1 Which legal system applies to the inherent validity of the parties’ marriage in terms of the South African rules of private international law? (2) 1.2 Assume that Maria was 17 years old at the time of entering into the marriage and that the parties went to Botswana to evade the rules of Namibian law that required parental consent for a minor to enter into a marriage. Would your answer to question 1.1 be the same? (5) Assume for purposes of questions 1.3 – 1.6 that the marriage is found to be inherently and formally valid. 1.3 Assume that redistribution of assets is classified as a divorce matter in English law and that divorce matters are also governed by the law of the forum in terms of the rules of English private international law. As you know, redistribution is classified as a proprietary consequence of marriage under South African law. Which legal system should be applied to the redistribution of the parties’ assets if via media classification is followed? (Note: you have to explain what via media classification is; provide the classification tables and reach a conclusion as to the applicable law). (15) 1.4 Mr Paulus executed a will in Germany in which he granted a power of appointment of a final beneficiary to Mrs Paulus. At the time of execution of the will, he was domiciled in England He retained his Namibian citizenship throughout his life. Mrs Paulus executed this power of appointment in a will drafted in England while also domiciled there. Mrs Paulus’s will was formally invalid in terms of all its possible testing systems, but formally valid in terms of German law. Was the power of appointment validly executed in terms of the Wills Act 7 of 1953? (4) 1.5 Which legal system would govern a maintenance claim by Mrs Paulus? (2) 1.6 The connecting factor for proprietary consequences of marriage needs reform. This point was also raised in the case of Sadiku v Sadiku (Case 30498/06 unreported). Discuss this case and proposals for reform of the connecting factor with reference to your prescribed reading material in this regard. (12) [40] QUESTION 2 Telefax (Pty) Ltd, a telecommunications company incorporated in South Africa, and Graphics Ltd, a company incorporated in England, concluded an international sales contract in January 2020. The contract contained a clause directing all disputes arising from it to settlement by means of arbitration, in Sandton, South Africa under the AFSA International Arbitration Rules. The contract contained no choice of law clause. A dispute arose between the parties in June 2020 and Graphics instituted a claim against Telefax in the South Gauteng High Court. 2.1 Advise Telefax on the relevant provisions of the International Arbitration Act 15 of 2017 and its Schedules in respect of Graphics’ conduct in contravention of the arbitration clause. 2.1 If the court follows the objective approach, how would it go about determining the proper law of the contract? (Note: also refer to the prescribed article by Fredericks 2003 SA Merc LJ 63). (10) Assume that Japanese law is found to be the proper law of the contract. Japan is a CISG contracting state. Should the court apply the CISG to the parties’ dispute? (Note: refer to your prescribed article by Wethmar-Lemmer 2008 De Jure 419) (5) = Discuss the primary responsibilities of the buyer and seller under the Incoterm as included in the contract. (Note: refer to your relevant prescribed reading material from Van Niekerk and Schulze). (5) (7) 2.2 How would an arbitral tribunal establish the substantive law to be applied to the dispute in compliance with the Arbitration Act and its Schedules? Discuss the relevant provision(s). (3) [10] QUESTION 3 Instructions: Read the set of facts and answer the questions that follow. Fish and More (Pty) Ltd is a South African company with its principal place of business in Durban. Sushi (Ltd) is a company incorporated in terms of the laws of New Zealand with its principal place of business in Auckland. Fish and More purchased a large consignment of mussels from Sushi. The parties never gave any thought to the governing law of their contract. Their contract provided that the goods had to be delivered CIF (Incoterms 2010) Durban and payment had to be effected into Sushi’s bank account held at ASB Bank, Auckland. The contract contained an arbitration clause, directing that all disputes had to be referred to arbitration by the London Court of International Arbitration (LCIA). Upon inspection of the goods shortly after arrival at their warehouse, Fish and More found that they contained higher levels of cadmium than mussels of other suppliers they frequently ordered from. Fish and More refused payment for the goods and Sushi delivered its notice of arbitration. Catch (Pty) Ltd is a company incorporated in South Africa with its central administration and principal place of business in Johannesburg. Catch imports seafood and sells it to many upmarket restaurants across South Africa. Sakana (KK) is a company incorporated in Japan with its central administration and principal place of business in Tokyo, Japan. Sakana exports seafood worldwide. Catch and Sakana concluded an international sales contract in terms of which Catch purchased a large consignment of bluefin tuna from Sakana for the purchase price of € 1 million. Payment had to be effected by means of an electronic funds transfer into Sakana’s bank account held at Norinchukin Bank, Tokyo. The goods had to be shipped FOB (ICC Incoterms 2020) Tokyo. The goods were shipped as per the agreement. Catch arranged for transport of the fish to their cold storage facility in Johannesburg. Upon inspection of the goods, Catch found that the fish was rotten. Catch refused to make payment for the fish, arguing that the fish was not adequately packed. However, upon further inspection, it transpired that the shipping freezer container was not kept cold enough while the fish was shipped. Sakana made several further demands for payment and thereafter instituted a claim against Catch in the South Gauteng High Court. 3.1 New Zealand is a CISG contracting state. Should the court apply the CISG to the parties’ dispute if the law of New Zealand is found to be the proper law of the contract? (5) 3.2 What is the method of payment that affords both parties to an international sales contract the best protection? Explain your answer. (5) 3.3 Assume that the CISG is indeed found to be applicable. Advise Fish and More on whether they would possibly be successful in arguing that Sushi committed a fundamental breach of contract due to the non-conformity of goods. (8) 3.4 Explain the parties’ responsibilities in terms of the Incoterm included in the contract. (5) 3.5 If Sushi were successful in obtaining an arbitral award against Fish and More, what would their chances be of its successful recognition and enforcement of the award in South Africa? Explain. (7) Maria Petrus and John Paulus met at high school in Windhoek, Namibia in 1979. They got married in December 1982 while on holiday in Botswana. At the time of entering into the marriage, both Mr and Mrs Paulus were Namibian citizens and Mrs Paulus was domiciled in Namibia as well. Mr Paulus established a domicile of choice in Sheffield, England in 1980 when he assumed permanent employment at a steel factory. He was domiciled there at the time of concluding his marriage to Maria as well. Mr and Mrs Paulus stayed in England until 1990 when Mr Paulus obtained a full-time position at a factory in Rosslyn, South Africa. In January 1991, the parties immigrated to Pretoria, South Africa, and established a domicile there. Two children were born from the marriage and Mrs Paulus stayed at home to look after them. In 2017, Mrs Paulus instituted divorce proceedings against Mr Paulus in the North Gauteng High Court. 1.1 Which legal system applies to the inherent validity of the parties’ marriage in terms of the South African rules of private international law? (2) 1.2 Assume that Maria was 17 years old at the time of entering into the marriage and that the parties went to Botswana to evade the rules of Namibian law that required parental consent for a minor to enter into a marriage. Would your answer to question 1.1 be the same? (5) Assume for purposes of questions 1.3 – 1.6 that the marriage is found to be inherently and formally valid. 1.3 Assume that redistribution of assets is classified as a divorce matter in English law and that divorce matters are also governed by the law of the forum in terms of the rules of English private international law. As you know, redistribution is classified as a proprietary consequence of marriage under South African law. Which legal system should be applied to the redistribution of the parties’ assets if via media classification is followed? (Note: you have to explain what via media classification is; provide the classification tables and reach a conclusion as to the applicable law). (15) 1.4 Mr Paulus executed a will in Germany in which he granted a power of appointment of a final beneficiary to Mrs Paulus. At the time of execution of the will, he was domiciled in England He retained his Namibian citizenship throughout his life. Mrs Paulus executed this power of appointment in a will drafted in England while also domiciled there. Mrs Paulus’s will was formally invalid in terms of all its possible testing systems, but formally valid in terms of German law. Was the power of appointment validly executed in terms of the Wills Act 7 of 1953? (4) 1.5 Which legal system would govern a maintenance claim by Mrs Paulus? (2) 1.6 The connecting factor for proprietary consequences of marriage needs reform. This point was also raised in the case of Sadiku v Sadiku (Case 30498/06 unreported). Discuss this case and proposals for reform of the connecting factor with reference to your prescribed reading material in this regard. (12) [40] QUESTION 2 Telefax (Pty) Ltd, a telecommunications company incorporated in South Africa, and Graphics Ltd, a company incorporated in England, concluded an international sales contract in January 2020. The contract contained a clause directing all disputes arising from it to settlement by means of arbitration, in Sandton, South Africa under the AFSA International Arbitration Rules. The contract contained no choice of law clause. A dispute arose between the parties in June 2020 and Graphics instituted a claim against Telefax in the South Gauteng High Court. 2.1 Advise Telefax on the relevant provisions of the International Arbitration Act 15 of 2017 and its Schedules in respect of Graphics’ conduct in contravention of the arbitration clause. 2.1 If the court follows the objective approach, how would it go about determining the proper law of the contract? (Note: also refer to the prescribed article by Fredericks 2003 SA Merc LJ 63). (10) Assume that Japanese law is found to be the proper law of the contract. Japan is a CISG contracting state. Should the court apply the CISG to the parties’ dispute? (Note: refer to your prescribed article by Wethmar-Lemmer 2008 De Jure 419) (5) = Discuss the primary responsibilities of the buyer and seller under the Incoterm as included in the contract. (Note: refer to your relevant prescribed reading material from Van Niekerk and Schulze). (5) (7) 2.2 How would an arbitral tribunal establish the substantive law to be applied to the dispute in compliance with the Arbitration Act and its Schedules? Discuss the relevant provision(s). (3) [10] QUESTION 3 Instructions: Read the set of facts and answer the questions that follow. Fish and More (Pty) Ltd is a South African company with its principal place of business in Durban. Sushi (Ltd) is a company incorporated in terms of the laws of New Zealand with its principal place of business in Auckland. Fish and More purchased a large consignment of mussels from Sushi. The parties never gave any thought to the governing law of their contract. Their contract provided that the goods had to be delivered CIF (Incoterms 2010) Durban and payment had to be effected into Sushi’s bank account held at ASB Bank, Auckland. The contract contained an arbitration clause, directing that all disputes had to be referred to arbitration by the London Court of International Arbitration (LCIA). Upon inspection of the goods shortly after arrival at their warehouse, Fish and More found that they contained higher levels of cadmium than mussels of other suppliers they frequently ordered from. Fish and More refused payment for the goods and Sushi delivered its notice of arbitration. Catch (Pty) Ltd is a company incorporated in South Africa with its central administration and principal place of business in Johannesburg. Catch imports seafood and sells it to many upmarket restaurants across South Africa. Sakana (KK) is a company incorporated in Japan with its central administration and principal place of business in Tokyo, Japan. Sakana exports seafood worldwide. Catch and Sakana concluded an international sales contract in terms of which Catch purchased a large consignment of bluefin tuna from Sakana for the purchase price of € 1 million. Payment had to be effected by means of an electronic funds transfer into Sakana’s bank account held at Norinchukin Bank, Tokyo. The goods had to be shipped FOB (ICC Incoterms 2020) Tokyo. The goods were shipped as per the agreement. Catch arranged for transport of the fish to their cold storage facility in Johannesburg. Upon inspection of the goods, Catch found that the fish was rotten. Catch refused to make payment for the fish, arguing that the fish was not adequately packed. However, upon further inspection, it transpired that the shipping freezer container was not kept cold enough while the fish was shipped. Sakana made several further demands for payment and thereafter instituted a claim against Catch in the South Gauteng High Court. 3.1 New Zealand is a CISG contracting state. Should the court apply the CISG to the parties’ dispute if the law of New Zealand is found to be the proper law of the contract? (5) 3.2 What is the method of payment that affords both parties to an international sales contract the best protection? Explain your answer. (5) 3.3 Assume that the CISG is indeed found to be applicable. Advise Fish and More on whether they would possibly be successful in arguing that Sushi committed a fundamental breach of contract due to the non-conformity of goods. (8) 3.4 Explain the parties’ responsibilities in terms of the Incoterm included in the contract. (5) 3.5 If Sushi were successful in obtaining an arbitral award against Fish and More, what would their chances be of its successful recognition and enforcement of the award in South Africa? Explain. (7)

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LJU4804
Assignment 2 Semester 2 2025
2 2025
Unique Number:
Due date: 15 September 2025
QUESTION

2.1.

When a South African court applies the objective approach to determine the proper law of a
contract, it does not focus on what the parties may have intended. Instead, the court
identifies the legal system with the closest and most real connection to the contract. This
idea, developed by Westlake, moves away from the subjective method and is applied by
weighing connecting factors in a qualitative way rather than merely counting them. Each
factor is assessed for its importance to the contract as a whole, and sometimes a single
factor may outweigh several others together.1

The court starts by looking at the most important connecting factor, namely the place of
performance (locus solutionis). In international sales contracts, performance usually involves
both payment and delivery.




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QUESTION

2.1.

When a South African court applies the objective approach to determine the proper
law of a contract, it does not focus on what the parties may have intended. Instead,
the court identifies the legal system with the closest and most real connection to the
contract. This idea, developed by Westlake, moves away from the subjective method
and is applied by weighing connecting factors in a qualitative way rather than merely
counting them. Each factor is assessed for its importance to the contract as a whole,
and sometimes a single factor may outweigh several others together.1

The court starts by looking at the most important connecting factor, namely the place
of performance (locus solutionis). In international sales contracts, performance
usually involves both payment and delivery. Where there are two different places of
performance, courts have relied on two possible approaches. The scission principle
treats each performance separately, applying the law of the country where the
relevant obligation was to be carried out. The alternative is the unitary principle,
which seeks to identify one legal system that governs the entire contract, by
examining which place of performance is more important when weighed against
other connecting factors.2

In weighing the factors, the court considers issues such as the domicile or principal
place of business of the parties, the place where the contract was concluded, the
currency of payment, the place where goods are delivered, and the nature of the
obligation in dispute.3 For example, in cases like Laconian Maritime Enterprises Ltd v
Agromar Lineas the scission principle was applied, while in Improvair (Cape) (Pty)
Ltd v Establissements Neu the court endorsed the unitary principle. Later cases,
such as Maschinen Frommer GmbH & Co KG v Trisave Engineering & Machinery
Supplies (Pty) Ltd, explored further refinements when neither place of performance
appeared clearly dominant.4


1
M M Wethmar-Lemmer Private International Law: Only study guide for LJU4804 (University of South Africa
2019) 93.
2
Laconian Maritime Enterprises Ltd v Agromar Lineas 1986 (3) SA 509 (D).
3
Fredericks J “Determining the Proper Law of a Contract in South Africa” (2003) 15 SA Merc LJ 63 at 67.
4
Improvair (Cape) (Pty) Ltd v Establissements Neu 1983 (2) SA 138 (C); Maschinen Frommer GmbH & Co KG v
Trisave Engineering & Machinery Supplies (Pty) Ltd 2003 (6) SA 69 (K).

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