PVL EXAM PACK

1 Which one of the following statements does not constitute enrichment according to Nortjé v Pool 1966 (3) SA 96 (A)? 1 The plaintiff transfers money to the defendant. 2 The plaintiff builds a house on the defendant’s property. 3 The plaintiff prospects for and finds valuable minerals on the property of the defendant. 4 The plaintiff pays the debt of the defendant to another party. 5 The plaintiff repairs the defendant’s car. (2) Question 2 Which one of the following statements does not constitute impoverishment for the purposes of a claim in unjustified enrichment? 1 The plaintiff pays money by mistake to the defendant. 2 The plaintiff pays the debt of the defendant to another party. 3 The plaintiff performs in terms of an illegal contract. 4 The defendant uses the plaintiff’s lapa and swimming pool to entertain his friends without the plaintiff’s permission while the plaintiff is away on business. 5 The plaintiff repairs the defendant’s car. (2) Question 3 Which one of the following does not constitute indirect enrichment? (1) A builds a lapa for B in terms of a contract on property he believes belongs to B, but which actually belongs to C. (2) A contracts with B to store property which he believes belongs to B, but which actually belongs to C. (3) A takes out a life insurance policy with insurer B for the benefit of his son C. (4) A contracts with B to supply the roof timber of a house that B is building for C, but B cannot pay A. (5) A contracts with B to repair a car that he believes belongs to B, but which actually belongs to C. (2) Question 4 Which one of the following statements constitutes enrichment obtained sine causa? 1 A must pay a sum of money to B in accordance with a court order, even though A believes with reason that the money is not owed. 2 A receives an inheritance from B, a distant relative whom A did not know. 3 A acquires ownership in the property of B due to acquisitive prescription. 4 A sells his house to B at a highly inflated price. 5 A pays B the purchase price to buy B’s house, but the agreement of sale does not comply with the statutory formalities for such agreements. (2) Question 5 Which one of the following statements is the most correct? 1 A claim in enrichment is primarily aimed at compensating the impoverished party for his or her loss. 2 A claim in enrichment is primarily aimed at having a specific item retransferred in ownership to the impoverished party. 3 A claim in enrichment is primarily aimed at claiming undue profits made by the enriched party. 4 A claim in enrichment is primarily aimed at claiming interest from the enriched party. 5 A claim in enrichment is primarily aimed at claiming specific performance due to breach of contract. (2) Question 6 On what date is enrichment liability generally fixed? 1 On the date of impoverishment. 2 On the date of enrichment. 3 On the date upon which the enrichment claim is lodged. 4 On the date upon which interest begins to accrue. 5 From the date of judgment by a court. (2) Question 7 Which statement best describes the manner in which the extent (quantum) of the enrichment is calculated in the case of a fully developed enrichment action? 1 The impoverished party is entitled to reasonably claim the full extent of its impoverishment. 2 The impoverished party is entitled to reasonably claim the full extent of the other party’s enrichment. 3 The impoverished party is entitled to claim the lesser of its own expenses and the extent of the value remaining in the hands of the enriched party. 4 The impoverished party is entitled to claim the lesser of its own expenses and the extent of the value remaining in the hands of the enriched party taking into account beneficial side effects of the impoverishment and the detrimental side effects of the enrichment. 5 The impoverished party is entitled to claim benefits that the enriched party could have derived from the enrichment, but negligently failed to do so. (2) The following facts are relevant for questions 8 to 13 (preferably read all these questions before attempting to answer): A concluded a sale with B for the purchase of 100 000,00 litres of crude oil in transit on the ship Miss Fortuna for R,00. A paid a deposit of R1 000 000,00. A had to make use of an overdraft facility to pay the deposit on which it paid interest at the rate of 14% per year. A and B were both unaware of the fact that the ship had already sunk and lost its full cargo at the time of the conclusion of the contract. B had an overdraft of R500 000,00 with its bank C which was subject to the payment of interest at 12% per year. C bank set-off R500 000,00 of the deposit against B’s overdraft, extinguishing the overdraft amount completely. The rest of the money was left in B’s current account where it earned interest at a rate of 7.5% per year