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CLA1503 TEST BANK
QUESTION 1
Which ONE of the following legal systems is the basis of the South African legalsystem?
1. Dutch law
2. Roman law
3. English law
4. Roman-Dutch law 4 is CORRECT.
Explanation
The works of the Roman-Dutch jurists, the statutes of Holland and the collections ofold
Dutch opinions and court decisions, form the basis of the South legal system.
QUESTION 2
Constitutional supremacy means that...
1. there may be no interference with judicial independence when a court appliesthe
Constitution.
2. the Constitution is the highest law of the country and any law which is contraryto its
provisions may be declared invalid. 2 is CORRECT.
3. Parliament is the highest legislative body and is entitled to make legislation
without any interference.
4. no right given by the Constitution may be limited.
Explanation
Constitutional supremacy means that the Constitution is the highest law of thecountry. Any
law which is contrary to its provisions may be declared invalid.
QUESTION 3
In which ONE of the following situations was a VALID contract concluded?
1. Sally engages a professional seafood caterer to provide seafood for her birthday
party, to which twenty guests have been invited. All the guests confirm that they
will attend Sally‟s birthday party. The day before the party, ten of the guests inform
Sally that they will not attend the party because theyprefer to attend a street party on
the same time and date in Sandton.
2. Nicolas enters into a agreement with himself and undertakes that he will save R500
each month by paying R500 into his savings account on the first day of each month.
,2
3. Peter purchases a new pair of running shoes for R600 on the official websiteof
Nike. The shoes will be delivered at his flat in Pretoria. The shoes will be delivered
at his flat in Pretoria. 3 is CORRECT.
4. Reeze undertakes to sell the moon and one star to Shana for R500.
Explanation
All five requirements for a valid contract have been satisfied. Online contracting is possible in
terms of the Electronic Communications and Transactions Act 25 of 2002which regulates
electronic contracts.
QUESTION 4
Mandla is a general dealer. He needs to appoint a sales person and to replace his delivery van
with a bigger vehicle. If Mandla finds a buyer for the van and a suitablesales person he will
conclude two contracts: a contract of sale in respect of the old vehicle and a contract of
employment with the suitable applicant.
Which ONE of the following persons does NOT have the full capacity to concludeboth of
the contracts with Mandla?
1. Gloria, seventeen years old, who has been married to Dan for the last twoyears.
They are married out of community of property.
2. Steven, whose estate was sequestrated after he lost a fortune in a shadybusiness
deal. Steven has not been rehabilitated yet. 2 is CORRECT.
3. Arthur, who is married in community of property to Stella.
4. Themba, sixteen years old, whose parents left him behind when they
immigrated to America because he had his own job and flat.
Explanation
Steven, as an unrehabilitated insolvent may not take up employment with a generaldealer
without the consent of his curator. Mandla is a general dealer. Steven will need the consent
of his curator to enter into the contract of sale because the purchase of the van may have a
negative effect on the insolvent estate. Steven cantherefore not conclude either of the
contracts independently.
QUESTION 5
Moses undertakes to buy Xolile a new truck one month after Simon‟s death has
occurred. Simon is currently very healthy.
Which ONE of the following statements is CORRECT?
1. The moment for performance cannot be determined since it is uncertain whenSimon
will die.
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2. A contractual relationship between Moses and Xolile arises and neither ofthem
may rescind the contract. 2 is CORRECT.
3. This is an example of a resolutive time clause since the contractual obligationonly
has effect until the occurrence of a certain event.
4. This is an example of a suspensive condition since the contractual obligationsare
suspended until the condition is fulfilled.
Explanation
As soon as the contract is concluded, a contractual relationship between Moses andXolile
arises, although it is subject to a suspensive time clause, and performance is only claimable
when Simon dies.
QUESTION 6
Donny sells his car to Stuart and his library of rare books to Chris. It is an express term of
his contract with Stuart that the car must be delivered by 6 June. The contract between
Donny and Chris does not stipulate any date for the delivery of thebooks to Chris. Donny
does not deliver the car to Stuart or the books to Chris.
Which ONE of the followings statements is CORRECT in respect of the legal stepsthat
may be taken against Donny?
1. Stuart and Chris may, in principle, claim delivery of the car and the books
respectively. 1 is CORRECT.
2. Stuart cannot claim delivery of the car but can only cancel the contract.
3. Chris is immediately entitled to cancel the contract for the sale of the books.
4. Stuart cannot apply for an interdict to prevent Donny from selling the car to
Edward at a higher price.
Explanation
The innocent parties, Stuart and Chris may claim specific performance, that is,delivery of
the car and the books.
QUESTION 7
Tshepo wins a gift voucher from Shine Car Fixtures. In terms of the voucher, she is entitled
to a free carwash. Since she does not own a car, she cedes her right to the carwash to her
friend Mpho.
Which ONE of the following statements is CORRECT?
1. An agreement between Tshepo and Shine Car Fixtures in terms of which a new
obligation is created between Shine Car Fixtures and Mpho, is a cessionof rights.
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2. An agreement between Tshepo and Mpho in terms of which Mpho becomesentitled
to performance by Shine Car Fixtures, is a cession of rights. 2 is CORRECT.
3. An agreement between Tshepo and Mpho in terms of which a new obligationis
created between Shine Car Fixtures and Mpho, is a cession of rights.
4. An agreement between Shine Car Fixtures and Mpho in terms of which a new
obligation is created between Shine Car Fixtures and Mpho, is a cession of rights.
Explanation
Cession is an agreement between the holder of a right (Tshepo in our case) and athird party
(Mpho) to the effect that the third party shall henceforth be the holder ofthe right. In other
words, it is an agreement by which a personal right (the free carwash) is transferred to
Mpho.
QUESTION 8
Roelf, a motivational speaker, rents a room from Jason to use as a consultation room. Roelf
and Jason agree about the rent but forget to discuss the date on which the rent must be paid.
Roelf‟s consultations go well for the first two weeks until Jason‟s son, Mawethu, brings
some items into the room alleging that his father gavehim permission to use part of the room
as a tuckshop.
Which ONE of the following statements is CORRECT?
1. Jason has performed his duty to deliver the room to Roelf by merely puttingthe
room at Roelf's disposal.
2. There is no contract of lease between Roelf and Jason because they did notagree
about the date of payment of the rent. 3 is CORRECT.
3. There is a contract of lease between Roelf and Jason because they haveagreed
about the rent to be paid by Roelf.
Explanation
The payment of rent is an essential element of a contract of lease. It may not be excluded, not
even by agreement between the parties. When a contract of lease isconcluded the lessee
(Roelf) must undertake to pay rent in return for the use and enjoyment of the lessor‟s (Jason)
thing (the room).
QUESTION 9
Tsepo and three of his friends decide to start a company. The business of the company will
be to buy expensive antiques and sell them. In the Memorandum of Incorporation they
incorporate a clause which requires a director to get approval from the board of directors
before concluding a contract which exceeds R25 000. Tsepo, one of the directors, buys a
very rare piece of antique furniture from Eesa forR75 000 without prior approval, but tells
Eesa that because of time constraints he could not wait for approval from the board. A
contract of sale is concluded.
CLA1503 TEST BANK
QUESTION 1
Which ONE of the following legal systems is the basis of the South African legalsystem?
1. Dutch law
2. Roman law
3. English law
4. Roman-Dutch law 4 is CORRECT.
Explanation
The works of the Roman-Dutch jurists, the statutes of Holland and the collections ofold
Dutch opinions and court decisions, form the basis of the South legal system.
QUESTION 2
Constitutional supremacy means that...
1. there may be no interference with judicial independence when a court appliesthe
Constitution.
2. the Constitution is the highest law of the country and any law which is contraryto its
provisions may be declared invalid. 2 is CORRECT.
3. Parliament is the highest legislative body and is entitled to make legislation
without any interference.
4. no right given by the Constitution may be limited.
Explanation
Constitutional supremacy means that the Constitution is the highest law of thecountry. Any
law which is contrary to its provisions may be declared invalid.
QUESTION 3
In which ONE of the following situations was a VALID contract concluded?
1. Sally engages a professional seafood caterer to provide seafood for her birthday
party, to which twenty guests have been invited. All the guests confirm that they
will attend Sally‟s birthday party. The day before the party, ten of the guests inform
Sally that they will not attend the party because theyprefer to attend a street party on
the same time and date in Sandton.
2. Nicolas enters into a agreement with himself and undertakes that he will save R500
each month by paying R500 into his savings account on the first day of each month.
,2
3. Peter purchases a new pair of running shoes for R600 on the official websiteof
Nike. The shoes will be delivered at his flat in Pretoria. The shoes will be delivered
at his flat in Pretoria. 3 is CORRECT.
4. Reeze undertakes to sell the moon and one star to Shana for R500.
Explanation
All five requirements for a valid contract have been satisfied. Online contracting is possible in
terms of the Electronic Communications and Transactions Act 25 of 2002which regulates
electronic contracts.
QUESTION 4
Mandla is a general dealer. He needs to appoint a sales person and to replace his delivery van
with a bigger vehicle. If Mandla finds a buyer for the van and a suitablesales person he will
conclude two contracts: a contract of sale in respect of the old vehicle and a contract of
employment with the suitable applicant.
Which ONE of the following persons does NOT have the full capacity to concludeboth of
the contracts with Mandla?
1. Gloria, seventeen years old, who has been married to Dan for the last twoyears.
They are married out of community of property.
2. Steven, whose estate was sequestrated after he lost a fortune in a shadybusiness
deal. Steven has not been rehabilitated yet. 2 is CORRECT.
3. Arthur, who is married in community of property to Stella.
4. Themba, sixteen years old, whose parents left him behind when they
immigrated to America because he had his own job and flat.
Explanation
Steven, as an unrehabilitated insolvent may not take up employment with a generaldealer
without the consent of his curator. Mandla is a general dealer. Steven will need the consent
of his curator to enter into the contract of sale because the purchase of the van may have a
negative effect on the insolvent estate. Steven cantherefore not conclude either of the
contracts independently.
QUESTION 5
Moses undertakes to buy Xolile a new truck one month after Simon‟s death has
occurred. Simon is currently very healthy.
Which ONE of the following statements is CORRECT?
1. The moment for performance cannot be determined since it is uncertain whenSimon
will die.
,3
2. A contractual relationship between Moses and Xolile arises and neither ofthem
may rescind the contract. 2 is CORRECT.
3. This is an example of a resolutive time clause since the contractual obligationonly
has effect until the occurrence of a certain event.
4. This is an example of a suspensive condition since the contractual obligationsare
suspended until the condition is fulfilled.
Explanation
As soon as the contract is concluded, a contractual relationship between Moses andXolile
arises, although it is subject to a suspensive time clause, and performance is only claimable
when Simon dies.
QUESTION 6
Donny sells his car to Stuart and his library of rare books to Chris. It is an express term of
his contract with Stuart that the car must be delivered by 6 June. The contract between
Donny and Chris does not stipulate any date for the delivery of thebooks to Chris. Donny
does not deliver the car to Stuart or the books to Chris.
Which ONE of the followings statements is CORRECT in respect of the legal stepsthat
may be taken against Donny?
1. Stuart and Chris may, in principle, claim delivery of the car and the books
respectively. 1 is CORRECT.
2. Stuart cannot claim delivery of the car but can only cancel the contract.
3. Chris is immediately entitled to cancel the contract for the sale of the books.
4. Stuart cannot apply for an interdict to prevent Donny from selling the car to
Edward at a higher price.
Explanation
The innocent parties, Stuart and Chris may claim specific performance, that is,delivery of
the car and the books.
QUESTION 7
Tshepo wins a gift voucher from Shine Car Fixtures. In terms of the voucher, she is entitled
to a free carwash. Since she does not own a car, she cedes her right to the carwash to her
friend Mpho.
Which ONE of the following statements is CORRECT?
1. An agreement between Tshepo and Shine Car Fixtures in terms of which a new
obligation is created between Shine Car Fixtures and Mpho, is a cessionof rights.
, 4
2. An agreement between Tshepo and Mpho in terms of which Mpho becomesentitled
to performance by Shine Car Fixtures, is a cession of rights. 2 is CORRECT.
3. An agreement between Tshepo and Mpho in terms of which a new obligationis
created between Shine Car Fixtures and Mpho, is a cession of rights.
4. An agreement between Shine Car Fixtures and Mpho in terms of which a new
obligation is created between Shine Car Fixtures and Mpho, is a cession of rights.
Explanation
Cession is an agreement between the holder of a right (Tshepo in our case) and athird party
(Mpho) to the effect that the third party shall henceforth be the holder ofthe right. In other
words, it is an agreement by which a personal right (the free carwash) is transferred to
Mpho.
QUESTION 8
Roelf, a motivational speaker, rents a room from Jason to use as a consultation room. Roelf
and Jason agree about the rent but forget to discuss the date on which the rent must be paid.
Roelf‟s consultations go well for the first two weeks until Jason‟s son, Mawethu, brings
some items into the room alleging that his father gavehim permission to use part of the room
as a tuckshop.
Which ONE of the following statements is CORRECT?
1. Jason has performed his duty to deliver the room to Roelf by merely puttingthe
room at Roelf's disposal.
2. There is no contract of lease between Roelf and Jason because they did notagree
about the date of payment of the rent. 3 is CORRECT.
3. There is a contract of lease between Roelf and Jason because they haveagreed
about the rent to be paid by Roelf.
Explanation
The payment of rent is an essential element of a contract of lease. It may not be excluded, not
even by agreement between the parties. When a contract of lease isconcluded the lessee
(Roelf) must undertake to pay rent in return for the use and enjoyment of the lessor‟s (Jason)
thing (the room).
QUESTION 9
Tsepo and three of his friends decide to start a company. The business of the company will
be to buy expensive antiques and sell them. In the Memorandum of Incorporation they
incorporate a clause which requires a director to get approval from the board of directors
before concluding a contract which exceeds R25 000. Tsepo, one of the directors, buys a
very rare piece of antique furniture from Eesa forR75 000 without prior approval, but tells
Eesa that because of time constraints he could not wait for approval from the board. A
contract of sale is concluded.
