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PVL3704 PORTFOLIO MEMO -SEMESTER 2 - 2022 - OCT./NOV. - UNISA (DETAILED MEMO)

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QUESTION 1 In McCarthy Retail Ltd v Shortdistance Carriers CC 2001 (3) SA 482 (SCA) para [9] the court said: “We now know from the hard print that there is a common-law basis for the acceptance of a general enrichment action, at least one of a subsidiary nature. In this respect the decision of the majority in Nortje’s case has been shown by the then largely dormant authority to be clearly wrong”. Critically discuss this statement with reference to relevant case law. (20) QUESTION 2 Discuss the requirement that the defendant’s enrichment must be at the expense of the plaintiff. Refer to relevant case law in your discussion. (10) QUESTION 3 A has sold his television set to B for R2 000. The contract stipulates that ownership will only pass to B after the last instalment has been paid. A has given a letter to B stating the following "Herewith I, A, confirm that I have sold Sony TV set No to B". After a period of six months and payment of R1 200 B wants to sell the set to C and shows C the letter from A. C who is very cautious, first phones A who again confirms the sale to B. C buys the set from B for R1 500. Thereafter B fails to make any further payments to A. A now claims back his TV set from C with a rei vindicatio. Advise A whether C may have any possible defenses against this claim, and if so, what requirements A should prove for the defense to succeed. (20) QUESTION 4 A takes his car to B, who sells second-hand cars, to have his car valued. The car is parked on B’s showroom floor where it is left for three days. In this period one of the sales staff, X, who believed the vehicle to be part of the stock, sold the vehicle to C for cash. A now claims the vehicle from C with a rei vindicatio. Advise C with reference to relevant case law. (10) QUESTION 5 K rents a farm from L. K effected the following improvements on the farm without L’s knowledge: (a) built a dam at a cost of R30 000,00; (b) built a luxury lapa on the edge of the dam at a cost of R100 000,00; and (c) sank a borehole at a cost of R20 000,00. K also repaired the roof of the farmhouse which had started to leak at a cost of R10 000,00. Discuss fully the legal position with regard to these improvements when the lease expires. Also briefly discuss whether the position would have been different if the lease agreement between K and L had been invalid. (20) QUESTION 6 The town council of Bapsfontein invited tenders for the construction of a new house for the town mayor. After the tender period closed, the executive committee of the council decided to award the tender to X. However, the council secretary mistakenly sent a letter of acceptance to Y who also tendered. It was the duty of the secretary to send out such letters on behalf of the council. Y immediately set about preparing to build the house and bought materials. Soon thereafter the council realised the mistake and informed Y that the letter of acceptance had been sent to it by mistake and that the tender had in fact been awarded to X. Y issued summons against the council for breach of contract and claimed damages. The council raised two defences: (a) it had no intention of accepting the award of Y and (b) the council secretary had no authority to accept the tender of Y (only the executive board had such authority). Discuss fully how Y could counter these defences and whether he would be successful under the circumstances. TOTAL PAPER: [100]

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PVL3704
ENRICHMENT,
LIABILITY AND
ESTOPPEL
PORTFOLIO MEMO
SEMESTER 2 –
OCTOBER/
NOVEMBER
UNISA – 2022
28 OCTOBER 2022

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, QUESTION 1
In McCarthy Retail Ltd v Shortdistance Carriers CC 2001 (3) SA 482 (SCA) para
[9] the court said: “We now know from the hard print that there is a common-
law basis for the acceptance of a general enrichment action, at least one of a
subsidiary nature. In this respect the decision of the majority in Nortje’s case
has been shown by the then largely dormant authority to be clearly wrong”.
Critically discuss this statement with reference to relevant case law. (20)


Roman law had specific enrichment actions, each with their own requirements, but
there was no general liability for unjustified enrichment. Relief was granted to a
plaintiff in specific circumstances based on very broad principles stated in two texts
which could not possibly provide a basis for liability. The enrichment actions of
Roman law were received into Roman-Dutch law where they weredeveloped and
extended over time and are still available in South African law. Our courts have also
recognised liability for enrichment in a number of circumstances where none of the
old actions was applicable, thereby further extending the scope of unjustified
enrichment liability in South African law.In Mccarthy Retail Ltd v Shortdistance
Carriers the court stated that unlike other branches of our law, the rich Roman
source material has not led to an unqualified judicial recognition (with a few
exceptions) of a unified general principle of unjustified enrichment.


Having regard to such extensions of enrichment liability, South African academics
had concluded thata general subsidiary enrichment action had developed in South
African law which would lie in any case of unjustified enrichment where none of the
old actions would lie. The view was that a general action had been developed which
was additional and subsidiary to the existing actions. Unjustified enrichment liability
is still underdeveloped in comparison with contract and delict and therefore remains
closer to Roman and Roman-Dutch law sources from which, it, and the greater part
of our private law, including contract and delict is sourced.




Unlike other branches of our law, the rich Roman source material has not led to an
unqualified judicial recognition (with a few exceptions) of a unified general principle
of unjustified enrichment, from which solutions to particular instances may be

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