©THESTAR 2025 ALL RIGHTS RESERVED
CONTRACT LAW PRACTICE EXAM
QUESTIONS AND ANSWERS 100% PASS
Define a contract - ANS this is an agreement between two parties that is legally binding and
enforceable.
Under what arms of law do contracts fall under - ANS Private law and commercial law which
are governed by common law
Define the following
valid contract
void contract
voidable contract - ANS Valid contract: this is a contract that meets all the criteria for it to be
legally binding and enforceable.
Void contract: this is a contract that is not legally valid from the moment it was created. It has
no legal effect (e.g. in cases of illegality, lack of consent, lack of capacity) and if the essential
terms are missing
Voidable contract: it is a contract that was initially valid and enforceable but one of both parties
have the right to cancel it e.g. unassisted contracts with minors or cases of non-consent of
trustees of an insolvent's estate)
What are the requirements for a contract to be valid - ANS -both parties must have
contractual capacity
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where there is no full contractual capacity, parties must be assisted or consent must be given
from relevant authorities
-activities must be legal
Describe the contractual capacity of
minors
married persons
insolvent persons
mentally ill/intoxicated persons - ANS Minors: age 0-6 have no contractual capacity
(guardians has to carry out on their behalf) ages 7-17 have limited contractual capacity
Marriage (ICOP): limited contractual capacity. For many things, they need to have consent from
their spouse before entering a contract
Mentally ill and severely intoxicated people have no contractual capacity. Mentally ill persons
can enter into contracts through a curator (who handles their affairs and assets)
Describe what circumstances a religious marriage is not considered valid and what is the
exception - ANS -one of the parties was intoxicated
-if the religious leader/ person marrying the couple is not a registered marriage officer
only exception is with Muslim marriages (imam is not a registered marriage officer but it is still
recognized as a valid marriage)
What are the 3 types of marriages - ANS -marriage in community of property
-marriage out of community of property
-accrual
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Give characteristics of marriage in community of porperty - ANS -all property and assets are
considered joint property of both spouses .
-liabilities of each spouse become joint liabilities in the single joint estate
-in a divorce the estate is divided equally
when one spouse is sequestrated (declared insolvent) the other spouse is too.
- one spouse cannot pledge, cede, alienate or mortgage assets or property without the
consent/ approval of the other spouse
Marriage out of community of property - ANS -
parties must sign an antenuptial contract (ANC) before a notary public and two witnesses
-assets and liabilities remain separate
-each spouse retains sole ownership of their estates/assets
-each spouse is solely responsible for their own debts and obligations
Accrual - ANS spouses may agree to share wealth or assets accumulated in the marriage. If
one spouse's estate has grown more than the other's the one with the smaller increase may be
entitled to half the difference of their increases
Define the following
Alienate
Cede/cession
Mortgage
Pledge - ANS Alienate: sell, mortgage or lease property (giving away)
Cede: manner of alienating used for intangible assets ie rights to something
Mortgage: borrow money in order to purchase immovable property (ie land or houses) and as
security for the loan you use the property as collateral
CONTRACT LAW PRACTICE EXAM
QUESTIONS AND ANSWERS 100% PASS
Define a contract - ANS this is an agreement between two parties that is legally binding and
enforceable.
Under what arms of law do contracts fall under - ANS Private law and commercial law which
are governed by common law
Define the following
valid contract
void contract
voidable contract - ANS Valid contract: this is a contract that meets all the criteria for it to be
legally binding and enforceable.
Void contract: this is a contract that is not legally valid from the moment it was created. It has
no legal effect (e.g. in cases of illegality, lack of consent, lack of capacity) and if the essential
terms are missing
Voidable contract: it is a contract that was initially valid and enforceable but one of both parties
have the right to cancel it e.g. unassisted contracts with minors or cases of non-consent of
trustees of an insolvent's estate)
What are the requirements for a contract to be valid - ANS -both parties must have
contractual capacity
, ©THESTAR 2025 ALL RIGHTS RESERVED
where there is no full contractual capacity, parties must be assisted or consent must be given
from relevant authorities
-activities must be legal
Describe the contractual capacity of
minors
married persons
insolvent persons
mentally ill/intoxicated persons - ANS Minors: age 0-6 have no contractual capacity
(guardians has to carry out on their behalf) ages 7-17 have limited contractual capacity
Marriage (ICOP): limited contractual capacity. For many things, they need to have consent from
their spouse before entering a contract
Mentally ill and severely intoxicated people have no contractual capacity. Mentally ill persons
can enter into contracts through a curator (who handles their affairs and assets)
Describe what circumstances a religious marriage is not considered valid and what is the
exception - ANS -one of the parties was intoxicated
-if the religious leader/ person marrying the couple is not a registered marriage officer
only exception is with Muslim marriages (imam is not a registered marriage officer but it is still
recognized as a valid marriage)
What are the 3 types of marriages - ANS -marriage in community of property
-marriage out of community of property
-accrual
, ©THESTAR 2025 ALL RIGHTS RESERVED
Give characteristics of marriage in community of porperty - ANS -all property and assets are
considered joint property of both spouses .
-liabilities of each spouse become joint liabilities in the single joint estate
-in a divorce the estate is divided equally
when one spouse is sequestrated (declared insolvent) the other spouse is too.
- one spouse cannot pledge, cede, alienate or mortgage assets or property without the
consent/ approval of the other spouse
Marriage out of community of property - ANS -
parties must sign an antenuptial contract (ANC) before a notary public and two witnesses
-assets and liabilities remain separate
-each spouse retains sole ownership of their estates/assets
-each spouse is solely responsible for their own debts and obligations
Accrual - ANS spouses may agree to share wealth or assets accumulated in the marriage. If
one spouse's estate has grown more than the other's the one with the smaller increase may be
entitled to half the difference of their increases
Define the following
Alienate
Cede/cession
Mortgage
Pledge - ANS Alienate: sell, mortgage or lease property (giving away)
Cede: manner of alienating used for intangible assets ie rights to something
Mortgage: borrow money in order to purchase immovable property (ie land or houses) and as
security for the loan you use the property as collateral
