Question 1
Indicate the incorrect statement:
a. Every person has legal capacity;
b. Every person is a human being;
c. Legal capacity is the ability to have rights and duties;
d. Persons have different contractual
capacity; e. All statements are correct.
Question 2
The following category of persons has no contractual capacity;
a. Insolvent persons;
b. Minors;
c. Prodigals;
d. Persons under the age of seven;
e. Married persons.
Question 3
If a minor wants to alienate immovable property worth R 200 000 the following formalities must
be complied with:
a. The minor needs the assistance of his guardian;
b. The minor needs the assistance of his guardian and the High court;
c. The minor needs the assistance of his guardian and the Master of the High court;
d. The minor needs the assistance of the Master of the High court;
e. None of the above is correct.
Question 4
If the husband, married in community of property after 1984, wants to alienate, pledge or
encumber shares of the joint household he must obtain:
a. The express consent of his wife, without any other formalities;
b. The tacit consent of his wife, without any further formalities;
c. The written consent of his wife;
d. The written consent attested by two
witnesses; e. More than one of the answers above
is correct.
Question 5
Ritchie agrees to lend R300 000 to Bankrupsky to enable him to conduct a court case against a
debtor which may be worth R4 000 000. They also agree that Ritchie will be entitled to 5% of
the proceeds of the case if it is successful.
a. This contract is valid;
b. This contract is illegal for it is contrary to common law, because it is contrary to good
morals;
c. This is a pactum de quota litis. This contract is illegal for it is contrary to common law
because it is contrary to public interest;
1
, d. This is a marriage brokerage contract. This contract is illegal for it is contrary to common
law, because it is contrary to public interest;
e. This is a pactum successorium. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
Question 6
A concludes a contract with B whereby they agree that B will inherit A’s house.
a. This contract is valid.
b. This contract is illegal for it is contrary to common law, because it is contrary to good morals.
c. This is a pactum de quota litis. This contract is illegal for it is contrary to common law because
it is contrary to public interest.
d. This is a marriage brokerage contract. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
e. This is a pactum successorium. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
Question 7
A concludes a contract with B whereby A agrees that B will be entitled to the benefits of his
insurance contract on his death. They also agree that A may substitute B at any time with any
other beneficiary.
a. This contract is valid;
b. This contract is illegal for it is contrary to common law, because it is contrary to good
morals;
c. This is a pactum de quota litis. This contract is illegal for it is contrary to common law
because it is contrary to public interest;
d. This is a marriage brokerage contract. This contract is illegal for it is contrary to common
law, because it is contrary to public interest;
e. This is a pactum successorium. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
Question 8
Supreme Dairies and Champion Creamers, both suppliers of milk, agree amongst themselves
that milk will be supplied at a set price of R6. 00 per liter.
a. This is resale price maintenance;
b. This is horizontal price collusion;
c. This is unlawful division of the market;
d. This is collusive tendering;
e. This is an agreement to lessen competition.
2
,Question 9
A wager is valid but unenforceable. This means:
a. One or more essentialia is absent;
b. All the essentialias are present but the requirement of consent is defective;
c. The requirement of legality is absent;
d. All the requirements are present but there was default by one of the
parties; e. None of the statements is correct.
Question 10
A suretyship contract must be:
a. In writing;
b. In writing and signed by the parties;
c. In writing, signed by the parties or their agents and attested by at least two (2)
witnesses;
d. In writing, notarially executed and registered;
e. In writing and signed by the parties or their agents.
Question 11
What is the meaning of the parol evidence rule?
a. If a contract is reduced to writing, the written contract is the exclusive memorial of the
contract between the parties;
b. If the law requires formalities these formalities must be complied with;
c. It means the written contract can be ratified;
d. It means the written contract can be rectified;
e. None of the statements above is correct.
Question 12
Which of the? following statements about rectification is incorrect
a. It prevents the unfair application of the parol evidence rule;
b. It allows parties to bring the written contract in line with the preceding oral contract;
c. It is necessary to prove a preceding valid contract;
d. The contract can only be rectified if it is prima facie valid;
e. None of the statements above is correct.
Question 13
Which of the following aspects relating to cession is incorrect?
a. Cession is a contract whereby rights are transferred from one person to another;
b. The debtor’s consent is needed to effect a valid cession;
c. Cession does not have to be in writing;
d. Cession substitutes one creditor with another creditor;
e. The nemo plus iuris rule applies to cession.
3
, Question 14
Sue borrowed R15 000 from Best Bank (Pty) Ltd for study purposes. Sue must repay this amount
three (3) years after the loan was granted to her. This is a (an)
a. Suspensive condition;
b. Resolutive condition;
c. Suspensive time clause;
d. Resolutive time clause;
e. Assumption.
Question 15
S sells his land to P ‘subject to the fact that the land has been set aside for business rezoning’.
This is a (an)
a. Suspensive condition;
b. Resolutive condition;
c. Suspensive time clause;
d. Resolutive time
clause; e. Assumption.
Question 16
A clause in a contract provides that the seller may cancel the sale if the purchaser fails to pay any
installment on the due date. This is a (an)
a. Penalty clause;
b. Acceleration clause;
c. Warranty;
d. Lex commissoria;
e. Exemption clause.
Question 17
According to the Consumer Protection Act 68 of 2008 the definition of a transaction includes:
a. An agreement for the supply of goods and services in the ordinary course of business;
b. A solicitation of offers to enter into a franchise agreement;
c. An offer by a potential franchisor to enter into a franchise agreement with a potential
franchisee;
d. The supply of any goods and services to the franchisee in terms of the franchise
agreement;
e. All these are correct;
f. None of the above is correct.
Question 18
In the conclusion of a contract it is important to determine the exact time and place of the
conclusion of a contract. This is relevant because it helps:
4
Indicate the incorrect statement:
a. Every person has legal capacity;
b. Every person is a human being;
c. Legal capacity is the ability to have rights and duties;
d. Persons have different contractual
capacity; e. All statements are correct.
Question 2
The following category of persons has no contractual capacity;
a. Insolvent persons;
b. Minors;
c. Prodigals;
d. Persons under the age of seven;
e. Married persons.
Question 3
If a minor wants to alienate immovable property worth R 200 000 the following formalities must
be complied with:
a. The minor needs the assistance of his guardian;
b. The minor needs the assistance of his guardian and the High court;
c. The minor needs the assistance of his guardian and the Master of the High court;
d. The minor needs the assistance of the Master of the High court;
e. None of the above is correct.
Question 4
If the husband, married in community of property after 1984, wants to alienate, pledge or
encumber shares of the joint household he must obtain:
a. The express consent of his wife, without any other formalities;
b. The tacit consent of his wife, without any further formalities;
c. The written consent of his wife;
d. The written consent attested by two
witnesses; e. More than one of the answers above
is correct.
Question 5
Ritchie agrees to lend R300 000 to Bankrupsky to enable him to conduct a court case against a
debtor which may be worth R4 000 000. They also agree that Ritchie will be entitled to 5% of
the proceeds of the case if it is successful.
a. This contract is valid;
b. This contract is illegal for it is contrary to common law, because it is contrary to good
morals;
c. This is a pactum de quota litis. This contract is illegal for it is contrary to common law
because it is contrary to public interest;
1
, d. This is a marriage brokerage contract. This contract is illegal for it is contrary to common
law, because it is contrary to public interest;
e. This is a pactum successorium. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
Question 6
A concludes a contract with B whereby they agree that B will inherit A’s house.
a. This contract is valid.
b. This contract is illegal for it is contrary to common law, because it is contrary to good morals.
c. This is a pactum de quota litis. This contract is illegal for it is contrary to common law because
it is contrary to public interest.
d. This is a marriage brokerage contract. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
e. This is a pactum successorium. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
Question 7
A concludes a contract with B whereby A agrees that B will be entitled to the benefits of his
insurance contract on his death. They also agree that A may substitute B at any time with any
other beneficiary.
a. This contract is valid;
b. This contract is illegal for it is contrary to common law, because it is contrary to good
morals;
c. This is a pactum de quota litis. This contract is illegal for it is contrary to common law
because it is contrary to public interest;
d. This is a marriage brokerage contract. This contract is illegal for it is contrary to common
law, because it is contrary to public interest;
e. This is a pactum successorium. This contract is illegal for it is contrary to common law,
because it is contrary to public interest.
Question 8
Supreme Dairies and Champion Creamers, both suppliers of milk, agree amongst themselves
that milk will be supplied at a set price of R6. 00 per liter.
a. This is resale price maintenance;
b. This is horizontal price collusion;
c. This is unlawful division of the market;
d. This is collusive tendering;
e. This is an agreement to lessen competition.
2
,Question 9
A wager is valid but unenforceable. This means:
a. One or more essentialia is absent;
b. All the essentialias are present but the requirement of consent is defective;
c. The requirement of legality is absent;
d. All the requirements are present but there was default by one of the
parties; e. None of the statements is correct.
Question 10
A suretyship contract must be:
a. In writing;
b. In writing and signed by the parties;
c. In writing, signed by the parties or their agents and attested by at least two (2)
witnesses;
d. In writing, notarially executed and registered;
e. In writing and signed by the parties or their agents.
Question 11
What is the meaning of the parol evidence rule?
a. If a contract is reduced to writing, the written contract is the exclusive memorial of the
contract between the parties;
b. If the law requires formalities these formalities must be complied with;
c. It means the written contract can be ratified;
d. It means the written contract can be rectified;
e. None of the statements above is correct.
Question 12
Which of the? following statements about rectification is incorrect
a. It prevents the unfair application of the parol evidence rule;
b. It allows parties to bring the written contract in line with the preceding oral contract;
c. It is necessary to prove a preceding valid contract;
d. The contract can only be rectified if it is prima facie valid;
e. None of the statements above is correct.
Question 13
Which of the following aspects relating to cession is incorrect?
a. Cession is a contract whereby rights are transferred from one person to another;
b. The debtor’s consent is needed to effect a valid cession;
c. Cession does not have to be in writing;
d. Cession substitutes one creditor with another creditor;
e. The nemo plus iuris rule applies to cession.
3
, Question 14
Sue borrowed R15 000 from Best Bank (Pty) Ltd for study purposes. Sue must repay this amount
three (3) years after the loan was granted to her. This is a (an)
a. Suspensive condition;
b. Resolutive condition;
c. Suspensive time clause;
d. Resolutive time clause;
e. Assumption.
Question 15
S sells his land to P ‘subject to the fact that the land has been set aside for business rezoning’.
This is a (an)
a. Suspensive condition;
b. Resolutive condition;
c. Suspensive time clause;
d. Resolutive time
clause; e. Assumption.
Question 16
A clause in a contract provides that the seller may cancel the sale if the purchaser fails to pay any
installment on the due date. This is a (an)
a. Penalty clause;
b. Acceleration clause;
c. Warranty;
d. Lex commissoria;
e. Exemption clause.
Question 17
According to the Consumer Protection Act 68 of 2008 the definition of a transaction includes:
a. An agreement for the supply of goods and services in the ordinary course of business;
b. A solicitation of offers to enter into a franchise agreement;
c. An offer by a potential franchisor to enter into a franchise agreement with a potential
franchisee;
d. The supply of any goods and services to the franchisee in terms of the franchise
agreement;
e. All these are correct;
f. None of the above is correct.
Question 18
In the conclusion of a contract it is important to determine the exact time and place of the
conclusion of a contract. This is relevant because it helps:
4
