Page | 1
CONTRACT LAW PRACTICE
EXAM/COMPREHENSIVE STUDY
GUIDE/ACTUAL EXAM Questions and
Answers (Expert Solutions)
Q: Define a contract, 🗹🗹: this is an agreement between two parties that is legally
binding and enforceable.
Q: Under what arms of law do contracts fall under, 🗹🗹: Private law and commercial
law which are governed by common law
Q: Define the following
valid contract
void contract
voidable contract, 🗹🗹: 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)
, Page | 2
Q: What are the requirements for a contract to be valid, 🗹🗹: -both parties must have
contractual capacity
where there is no full contractual capacity, parties must be assisted or consent must be
given from relevant authorities
-activities must be legal
Q: Describe the contractual capacity of
minors
married persons
insolvent persons
mentally ill/intoxicated persons, 🗹🗹: 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)
Q: Describe what circumstances a religious marriage is not considered valid and what is
the exception, 🗹🗹: -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)
Q: What are the 3 types of marriages, 🗹🗹: -marriage in community of property
-marriage out of community of property
-accrual
, Page | 3
Q: Give characteristics of marriage in community of porperty, 🗹🗹: -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
Q: Marriage out of community of property, 🗹🗹: -
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
Q: Accrual, 🗹🗹: 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
Q: Define the following
Alienate
Cede/cession
Mortgage
Pledge, 🗹🗹: 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
Q: Define the redistribution order and where it would be used, 🗹🗹: In a divorce, a
court might issue a redistribution order to transfer ownership of certain assets (e.g.,
CONTRACT LAW PRACTICE
EXAM/COMPREHENSIVE STUDY
GUIDE/ACTUAL EXAM Questions and
Answers (Expert Solutions)
Q: Define a contract, 🗹🗹: this is an agreement between two parties that is legally
binding and enforceable.
Q: Under what arms of law do contracts fall under, 🗹🗹: Private law and commercial
law which are governed by common law
Q: Define the following
valid contract
void contract
voidable contract, 🗹🗹: 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)
, Page | 2
Q: What are the requirements for a contract to be valid, 🗹🗹: -both parties must have
contractual capacity
where there is no full contractual capacity, parties must be assisted or consent must be
given from relevant authorities
-activities must be legal
Q: Describe the contractual capacity of
minors
married persons
insolvent persons
mentally ill/intoxicated persons, 🗹🗹: 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)
Q: Describe what circumstances a religious marriage is not considered valid and what is
the exception, 🗹🗹: -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)
Q: What are the 3 types of marriages, 🗹🗹: -marriage in community of property
-marriage out of community of property
-accrual
, Page | 3
Q: Give characteristics of marriage in community of porperty, 🗹🗹: -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
Q: Marriage out of community of property, 🗹🗹: -
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
Q: Accrual, 🗹🗹: 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
Q: Define the following
Alienate
Cede/cession
Mortgage
Pledge, 🗹🗹: 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
Q: Define the redistribution order and where it would be used, 🗹🗹: In a divorce, a
court might issue a redistribution order to transfer ownership of certain assets (e.g.,
