CLA1503 PORTFOLIO ASSIGNMENT.

CLA1503 PORTFOLIO ASSIGNMENT. Commercial Law IC. To comply with the formation of a valid contract there are 5 requirements according to the General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg. 48. Firstly, there must be consensus between both parties, in Jonathan and Andy’s case the requirement has been met as there is consensus between both parties. Secondly, each party must have the capacity to act. In this case, according to General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg. 71 being a minor gives you limited capacity to act, and because they are under the age of 18, Jonathan and Andy do not have the capacity to act unless their guardians assist in the acquisition of property according to the Children’s Act. Thirdly, the agreement must be legally possible. In this case, the contract has met the requirement because the sale of the bicycle is lawful. Fourthly, the agreement must be physically possible. In this case, the requirement has been met because the performance regarding the contract is ascertainable and physically possible. Lastly, if any formalities have been prescribed for the contract, they must be observed. In this case the requirement has been met because this contract is informal and there have been no formalities prescribed. Overall, the contract of sale between Jonathan and Andy meet four out of five requirements making the contract invalid. This study source was downloaded by from CourseH on :10:22 GMT -06:00 This study resource was shared via CourseH 3 QUESTION 3 3.1) The court uses statutory interpretation to find the precise meaning of a word or phrase in an Act. According to the General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg.12 In South Africa there is a separation of powers amongst the parliament and the Judiciary, thus resulting in the stare decisis rule which stipulates that a source of law is based on the judiciary’s interpretation of the law. The judiciary function is to interpretate then apply a law without amending or altering it. Two very important principles for the interpretation of the law is the meaning of a provision must be read as an entirety and defined by its context and language. There must also be a reasonable interpretation that is in line with the purpose and scope of the legislation. 3.2 (a) According to the General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg.55, if either one of the parties passes before an offer is accepted, the offer is invalid. In Dawiee’s case his offer cannot be valid as Raphael had died before being able to receive Dawiee’s offer. (b) According to the General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg.54, “The offer must be addressed either to a particular person or persons, or in general to an unknown person or persons or to the general public.” In this case, there is a valid offer being made by the police because they have made an offer to the public and once a person provides the required information, by this act has accepted the offer. All other requirements have been met resulting in a valid offer. 3.3) According to the General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg.96, there are four types of contracts that require formalities namely, Contracts for the alienation of land, Contracts of suretyship, Contracts of donation in terms of which performance is due in the future and Consumer contracts. Firstly, the formalities that are prescribed for Contracts for alienation of land are stated in the Alienation of Land Act 68 of 1981. Which states that to be valid, the contract needs to be signed by both contracting parties or agents acting on behalf of parties and contained in a contract of alienation. Consequences of non-compliance with formalities, include conclude in an invalid contract and equal recovery amongst both parties of what they have each performed. Secondly, the formalities that are prescribed for Contracts of suretyship are stated in The General Law Amendment Act 50 of 1956. Which states that to be valid, a contract of surety must be in writing and signed by, or on behalf of the surety. Consequences of non-compliance with formalities, conclude that the contract will be invalid. Thirdly, the formalities that are prescribed for Contracts of donation are stated in the General Law Amendment Act 50 of 1956. Which states that the contract is only valid if it is included in a written document that has been signed by the donor or an agent acting on behalf of the donor. The agent’s authority to sign on behalf of the donor needs to be confirmed through written authorization and it is required that authority must be granted to the agent in the presence of two witnesses. Consequences of non-compliance with formalities, conclude that the contract will This study source was downloaded by from CourseH on :10:22 GMT -06:00 This study resource was shared via CourseH 4 be invalid. Lastly, the formalities that are prescribed for Consumer contracts are stated in the Consumer Protection Act 68 of 2008. Which states that a receipt of each transaction must be given to the consumer consisting of certain necessary information such as the businesses name, VAT number etc. Consequences of non-compliance with formalities, conclude that the contract will be invalid. QUESTION 4 4.1 The nature of the birthday invitation that Maduna has sent her guests constitute an agreement and not a contract because it is a social appointment. According to the General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg.47 Social appointments do not create any legally enforceable obligations, therefore unfortunately Maduna will not be able to take any legal action against the guests. 4.2 (a) The contract between Marcel and Colin was concluded at the Mzu’s restaurant where and when consensus between both parties was reached, According to the General Principles of Commercial Law 9th edition (Juta) 2019 by Schulze H (General Editor) pg.57 “A contract arises at the moment when and, at the place, where consensus is reached.” Consensus is reached when both parties become aware of the offer and mutually accept the terms, which in Marcels and Colins case was at the restaurant where they both agreed on the amount of R75 000 in exchange for the motorbike. (b) Colin may not withdraw his acceptance of the offer because the contract between the two parties have already been concluded, and consensus has been reached. Colin would have been able to revoke the offer before it was accepted, but unfortunately in his case the offer had already been accepted.