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CLA1502 Assignment 1 (DETAILED ANSWERS Semester 1 2026 - DISTINCTION GUARANTEED

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CLA1502 Assignment 1 (DETAILED ANSWERS Semester 1 2026 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references.. QUESTION 1 .. 3 1.1 Discuss the common-law right of the purchaser to be protected by the seller against eviction. In your answer you must include an example of this common-law right. (6) . 3 1.2 Discuss the requirements that must be met before the transfer of ownership in movables can take place. (4) 4 ________________________________________ QUESTION 2 .. 5 3.1 What type of insurance covers theft and accidental damage? (1) .. 5 3.2 What type of insurance is life insurance? (1) .. 5 3.3 Can Roger insure his Mercedes Benz C200 with more than one insurance company? Provide reasons for your answer. (3) .. 6 3.4 During his pre-contractual statement with ABC Insurance Brokers, Roger claims to be in very good health and states that he does not have any chronic conditions, even though he actually suffers from high blood pressure and high cholesterol. Explain to Roger what the duty of good faith in insurance contracts entails and what the possible consequences of his submission can have on the validity of his life insurance contract.

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CLA1502
Assignment 1 Semester 1 2026
Unique number:
Due Date: 2026

Detailed solutions, explanations, workings
and references.


+27 81 278 3372

, QUESTION 1

1.1.

Under South African common law, a seller in a contract of sale gives an implied
undertaking that the purchaser will not be disturbed in her possession and enjoyment
of the merx by a third party who has a better legal title to the property. This
undertaking exists automatically in every contract of sale and does not need to be
expressly stated by the parties (Kelbrick et al., 2020).

This implied undertaking is known as the seller’s warranty against eviction. It
means that the seller guarantees that the purchaser will have undisturbed and lawful
possession of the thing sold. If a third party with a superior legal right claims the
merx, the seller has a duty to assist the purchaser in defending that claim (Kelbrick
et al., 2020).

If the purchaser is sued by a third party claiming ownership, the purchaser must
notify the seller and call upon the seller to defend the action. The seller is then
obliged to step in and assist in protecting the purchaser’s possession. If the seller
fails to assist and the purchaser is evicted because the third party proves a better
title, the seller is in breach of the warranty against eviction (Kelbrick et al., 2020).

Even where the seller does not assist, the purchaser must still put up a proper and
competent defence against the third party’s claim. If the purchaser fails to defend the
claim properly, the seller may not be held liable (Kelbrick et al., 2020).




1.2

In South African law, ownership of movable property does not pass automatically
upon conclusion of a contract of sale. Certain legal requirements must be satisfied
before ownership can be transferred.

Firstly, there must be a valid underlying contract, such as a valid contract of sale.
This provides the legal cause for the transfer of ownership. Without a valid




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