PVL3701 PORTFOLIO MEMO - MAY/JUNE 2025 - SEMESTER 1 - UNISA - DUE DATE :- 19 MAY 2025 - (DETAILED ANSWERS WITH FOOTNOTES AND BIBLIOGRAPHY - DISTINCTION GUARANTEED!)

PVL3701 PORTFOLIO MEMO - MAY/JUNE 2025 - SEMESTER 1 - UNISA - DUE DATE :- 19 MAY 2025 - (DETAILED ANSWERS WITH FOOTNOTES AND BIBLIOGRAPHY - DISTINCTION GUARANTEED!) Question 1 [73 marks; ±175 minutes] Two Unisa postgraduate students, John and his best friend Karabo, are inspired by a news story about the three men who cycled from Limpopo to Cape Town. Motivated by this feat, they decide and plan to take up a similar challenge namely, to cycle from Durban to Upington. After careful consideration, they estimate that they will each need R15 000 (a total of R30 000) to cover their day-to-day expenses during this trip. John is currently serving his articles at a law firm and does not own a bicycle. When he shares his plan with Thebe, a senior partner at the firm and an avid cyclist, Thebe offers to rent him one of his bicycles for R500 per week. John is ecstatic about the offer and collects the bicycle at Thebe’s house. John earns R8 000 per month at the law firm and owns a valuable gaming laptop, which he seldom uses. Karabo works part-time at the Unisa law library and earns R5 000 per month. He owns a high-quality bicycle, valued at approximately R20 000, but he does not have any other valuable assets. Against this factual background, answer the following questions: 1.1 Identify and briefly describe the nature of the right that John has in relation to the bicycle he is renting from Thebe. Provide reasons for your answer. [6] 1.2 Identify and briefly describe the nature of the real relationship between John and the bicycle he is renting from Thebe. Provide reasons for your answer. [8] 1.3 Explain the nature of the right Thebe retains over the bicycle that he is renting to John for the cycling challenge. In your answer, clarify how this right is limited under the current circumstances. Provide reasons for your answer. [10] 1.4 John is concerned that the bicycle he is leasing from Thebe might be damaged or stolen during the trip. Advise John on the legal consequences if this happens. What remedies or options might be available to him? Consider the fact that Thebe does not have insurance over the bicycle. Briefly motivate your answer. [10] 1.5 Although Karabo has his own bicycle that can be used for the cycling challenge, he would have to apply for a loan, since he does not have R15 000 for his day-to- day expenses during the challenge. Karabo approaches Blue Bank for a loan. Although Blue Bank is willing to grant him the loan, they indicate to Karabo that they will require security from him for the loan. Advise Karabo on the most suitable type of security he can offer, considering his available assets. In your answer, you must also briefly mention forms of security that would not be suitable in his case and why. Note further that Blue Bank will not accept suretyship. Motivate your answer. [12] 1.6 Although John earns R8 000 per month, he only has R5 000 in savings available for the day-to-day expenses of the trip. Karabo’s close friend, Palesa, is willing to lend John the remaining R10 000, but insists on receiving security for the loan. Advise John and Palesa on the most suitable available security option under these circumstances and indicate the option that would be most suitable in your view. Note further that Palesa would not consider suretyship under these circumstances. Motivate your answer. [10] 1.7 John and Karabo successfully completed the cycling challenge and have returned to Durban. John who has developed a passion for cycling, asks Thebe whether he can purchase the bicycle he rented from him (Thebe). Thebe informs John that he can have the bicycle for free. Thebe then asks John to briefly explain to him how ownership of the bicycle will legally transfer to him (John). Provide John’s response. Motivate your answer. [10] 1.8 John and Karabo arrived back home very late from the cycling trip. Karabo, who was exhausted, forgot his bicycle outside next to the garbage bin. The next morning while Karabo is still asleep, a private refuse removal company (appointed by the municipality) collected the garbage, including the bicycle. Determine whether Karabo will successfully be able to claim the bicycle from the refuse company. Motivate your answer. [7] Question 2 [16 marks; ± 35 minutes] Carin, a widow, owns a protea farm in Cullinan. Several people reside on the farm with her. Carin lives in the main farmhouse of the farm, while Anna, an elderly aunt of her late husband, resides in one of the smaller cottages in terms of a personal servitude. Five farmworkers live in the remaining five cottages on the property. The farmworkers receive weekly cash wages as their primary form of remuneration. Carin, who has long considered relocating to Cape Town, finds a new farm in the Cape Town area and decides to proceed with the move. As a first step, she consults a lawyer for advice on the legal position of the people residing on the Cullinan farm. In particular: Anna refuses to leave the farm; Carin also wishes to understand the legal position of the five farmworkers residing on the property. Against this factual background, answer the following questions: 2.1 Advise Carin on Anna’s legal position. In your answer, specifically indicate whether Carin will be able to evict Anna. Provide reasons for your answer with reference to the nature of Anna’s right. [8] 2.2 Advise Carin about the legal position of the five farmworkers. In your answer, specifically discuss whether Carin would be able to evict them. Provide reasons for your answer. [8] Question 3 [11 marks; ± 25 minutes] Sophia owns a farm in Limpopo that she inherited from her parents. She receives a formal notice from the local municipality informing her that her farm will be expropriated for the purpose of constructing a new public primary school in the area. Distressed by this news, Sophia approaches you for legal advice. Against this factual background, answer the following questions: 3.1 Explain why it is significant that expropriation is classified as an original form of acquisition of ownership. In your answer, refer specifically to how expropriation impacts Sophia’s position. [6] 3.2 Set out the requirements that should be met for the lawful expropriation of Sophia’s farm. Briefly motivate your answer with reference to the Constitution of the Republic of South Africa, 1996 and apply these requirements to the set of facts. [5]