BUSINESS LAW SOLVED PRACTICE
QUESTIONS AND ESSAYS
1. Outline and explain the following remedies for breach of contract:
(a) Specific performance.
(b) Damages.
(c) Cancellation.
(d) Interdict
Answers:
(a) Specific performance is a remedy whereby the court orders the breaching party
to carry out their obligations under the contract.
(b) Damages are a monetary remedy whereby the court orders the breaching party to
pay the innocent party a sum of money in compensation for the loss suffered as a
result of the breach.
(c) Cancellation is a remedy whereby the court orders the contract to be terminated
and the parties are released from their obligations.
(d) Interdict is a remedy whereby the court orders the breaching party to cease their
breaching conduct and/or to take certain actions to remedy the breach.
2. (a) State and explain the essential elements of the contract of sale.
(b) List the duties of a lessor under the contract of lease.
(c) What are the main differences between a promissory note and a bill of exchange?
Answers:
,(a) The essential elements of the contract of sale are an agreement between two parties, the buyer
and the seller, for the exchange of goods or services for a price. The contract must be made in
good faith, and there must be consideration, or something of value, exchanged between the
parties.
(b) The duties of a lessor under the contract of lease include providing the lessee with a safe and
habitable space, maintaining the property in good condition, and complying with all applicable
laws and regulations.
(c) The main differences between a promissory note and a bill of exchange are that a promissory
note is a written promise to pay a certain amount of money, while a bill of exchange is an order
to pay a certain amount of money. A promissory note is typically signed by the debtor, while a
bill of exchange is typically signed by the creditor.
3. Chiutsi Tobacco (Pvt) Ltd advertised a reward of US$1 000 to any person giving
information leading to the arrest of thieves who had robbed the company and to the
recovery of all stolen goods. Without prior knowledge of this reward, James provided
the required information which led to the arrest of the thieves and the recovery of all
the stolen goods. He is now claiming the reward after getting to know of its existence.
Discuss the law relating to acceptance of an offer and whether James will succeed with
his claim.
Answer:
The law relating to acceptance of an offer is that an offer must be accepted in order for a contract
to be formed. An offer cannot be accepted by silence, so James will not be able to claim the
reward if he did not know about the reward beforehand.
, 4. Madzibaba Lazarus, a leader of a religious cult recruits Tendai who has recently
divorced her husband. As part of the divorce settlement, Tendai received a US$200
000 from her husband. In an effort to forget her failed marriage, Tendai throws herself
whole- heartedly into the affairs of the sect and she becomes subservient to the will of
Madzibaba Lazarus. In these circumstances, Madzibaba Lazarus persuades Tendai to
sign an agreement donating her entire US$200 000 to the sect in return for life
membership. Tendai has now become disillusioned with the sect and now wants to
recover her donation.
Advise Tendai on her legal position.
Answer:
Tendai's legal position is that she can recover her donation from the sect if she can prove that she
was coerced into signing the agreement.
5. Sam moved into a house that he is leasing from Mary. He discovers that the roof of
the house is leaking badly. He notified Mary of the situation but Mary does nothing
about it and Sam’s property is damaged by rain.
Advise Sam, referring to the duties of the lessor and the remedies that are
available to him in the circumstances.
Answer:
If the roof is leaking badly and causing damage to Sam's property, Sam can notify Mary and ask
her to repair the roof. If Mary does not repair the roof, Sam can sue Mary for the cost of
repairing the roof and any damage to his property.
QUESTIONS AND ESSAYS
1. Outline and explain the following remedies for breach of contract:
(a) Specific performance.
(b) Damages.
(c) Cancellation.
(d) Interdict
Answers:
(a) Specific performance is a remedy whereby the court orders the breaching party
to carry out their obligations under the contract.
(b) Damages are a monetary remedy whereby the court orders the breaching party to
pay the innocent party a sum of money in compensation for the loss suffered as a
result of the breach.
(c) Cancellation is a remedy whereby the court orders the contract to be terminated
and the parties are released from their obligations.
(d) Interdict is a remedy whereby the court orders the breaching party to cease their
breaching conduct and/or to take certain actions to remedy the breach.
2. (a) State and explain the essential elements of the contract of sale.
(b) List the duties of a lessor under the contract of lease.
(c) What are the main differences between a promissory note and a bill of exchange?
Answers:
,(a) The essential elements of the contract of sale are an agreement between two parties, the buyer
and the seller, for the exchange of goods or services for a price. The contract must be made in
good faith, and there must be consideration, or something of value, exchanged between the
parties.
(b) The duties of a lessor under the contract of lease include providing the lessee with a safe and
habitable space, maintaining the property in good condition, and complying with all applicable
laws and regulations.
(c) The main differences between a promissory note and a bill of exchange are that a promissory
note is a written promise to pay a certain amount of money, while a bill of exchange is an order
to pay a certain amount of money. A promissory note is typically signed by the debtor, while a
bill of exchange is typically signed by the creditor.
3. Chiutsi Tobacco (Pvt) Ltd advertised a reward of US$1 000 to any person giving
information leading to the arrest of thieves who had robbed the company and to the
recovery of all stolen goods. Without prior knowledge of this reward, James provided
the required information which led to the arrest of the thieves and the recovery of all
the stolen goods. He is now claiming the reward after getting to know of its existence.
Discuss the law relating to acceptance of an offer and whether James will succeed with
his claim.
Answer:
The law relating to acceptance of an offer is that an offer must be accepted in order for a contract
to be formed. An offer cannot be accepted by silence, so James will not be able to claim the
reward if he did not know about the reward beforehand.
, 4. Madzibaba Lazarus, a leader of a religious cult recruits Tendai who has recently
divorced her husband. As part of the divorce settlement, Tendai received a US$200
000 from her husband. In an effort to forget her failed marriage, Tendai throws herself
whole- heartedly into the affairs of the sect and she becomes subservient to the will of
Madzibaba Lazarus. In these circumstances, Madzibaba Lazarus persuades Tendai to
sign an agreement donating her entire US$200 000 to the sect in return for life
membership. Tendai has now become disillusioned with the sect and now wants to
recover her donation.
Advise Tendai on her legal position.
Answer:
Tendai's legal position is that she can recover her donation from the sect if she can prove that she
was coerced into signing the agreement.
5. Sam moved into a house that he is leasing from Mary. He discovers that the roof of
the house is leaking badly. He notified Mary of the situation but Mary does nothing
about it and Sam’s property is damaged by rain.
Advise Sam, referring to the duties of the lessor and the remedies that are
available to him in the circumstances.
Answer:
If the roof is leaking badly and causing damage to Sam's property, Sam can notify Mary and ask
her to repair the roof. If Mary does not repair the roof, Sam can sue Mary for the cost of
repairing the roof and any damage to his property.
