Uncertain Contractual Agreements

True or False: In general, set-off will operate automatically and there is no need to claim it first. --------------------------------------- Waar of Onwaar: Dit word algemeen aanvaar dat skuldvergelyking outomaties werk en dat dit nie geëis hoef te word nie. Question 9Answer a. True / Waar b. False / Onwaar

rue or False: XYZ Auditors are, in terms of a contract, the auditors of Magenta Furniture. XYZ makes a mistake with the annual statements of Magenta Furnishers causing it to appear that they have suffered a great loss. This fact is published in the media and negatively affects Magenta's reputation. Magenta claims damages for loss of reputation based on breach of contract. They will be successful with such a claim. --------------------------------------- Waar of Onwaar: XYZ Ouditeure is ingevolge ʼn kontrak die ouditeure van Magenta Meubileerders. XYZ begaan ‘n fout met die jaarstate van Magenta Meubileerders met die gevolg dat dit lyk asof hulle ‘n groot verlies gely het. Hierdie feit word in die media gepubliseer en Magenta se reputasie word negatief daardeur aangetas. Magenta stel ‘n eis vir skadevergoeding vir verlies aan reputasie in op grond van kontrakbreuk. Hulle sal suksesvol wees met so ‘n eis. Question 10Answer a. True / Waar b. False / Onwaar

True or False: One of the requirements of a valid cession between the cedent and cessionary is that the debtor must be aware of the agreement of cession, which means that the debtor’s consent needs to be obtained before a valid cession can occur. --------------------------------------- Waar of Onwaar: Een van die vereistes vir ‘n geldige sessie tussen die sedent en die sessionaris is dat die skuldenaar bewus moet wees van die sessie-ooreenkoms, wat beteken dat die skuldenaar se toestemming verkry moet word voordat ‘n geldige sessie kan plaasvind. Question 11Answer a. False / Onwaar b. True / Waar

Choose the correct option: A and B conclude a contract in terms of which A will make B a wooden table, but that B must first pay for the wood before the table is delivered to B. B has not paid for the wood yet. The best way for A to get B to pay him for the wood is for: --------------------------------------- Kies die korrekte opsie: A en B sluit ‘n kontrak dat A vir B ‘n houttafel sal maak, maar dat B hom eers vir die hout moet vergoed voordat hy die tafel aan B lewer. B het tot op hede nog nie vir die hout betaal nie. Die beste manier hoe A vir B sover sal kry om te betaal is dat: Question 12Answer a. A to withhold his performance to make sure that B will perform. / A sy prestasie weerhou en daardeur seker maak dat B sal presteer. b. A to sue B on grounds of repudiation. / A spreek vir B aan op grond van repudiasie.

Choose the correct option: A rents a hall from B to celebrate his 50th birthday. He invited * guests to celebrate with him. On the day of the celebrations, B does not arrive to unlock the door to the venue. This is a case of breach of contract in the form of: --------------------------------------- Kies die korrekte opsie: A huur ‘n saal by B om sy 50ste verjaarsdag te vier. Hy het * gaste genooi om die geleentheid saam met hom te vier. Op die dag van die feesvieringe, daag B egter nie op om die saal oop te sluit nie. Hier word kontrakbreuk gepleeg in die vorm van: Question 13Answer a. mora creditoris / mora creditoris. b. positive malperformance / positiewe wanprestasie. c. mora debitoris / mora debitoris. d. prevention of performance / onmoontlikmaking van prestasie

hoose the correct option: A, B and C are partners who took out a loan from D for R6 *. When the partnership is terminated, D immediately institutes a claim against A, B and C for the R6 *. A, B and C will be liable towards D as: ________. --------------------------------------- Kies die korrekte opsie: A, B en C is vennote wat ‘n lening uitgeneem het by D vir R6 *. Toe die vennootskap beëindig word, stel D onmiddellik ‘n eis teen A, B en C in vir die R6 *. A, B en C sal aanspreeklik wees teenoor D as: ______________. Question 14Answer a. Joint co-debtors | Gesamentlike medeskuldenaars. b. Simple co-debtors | Eenvoudige medeskuldenaars. c. Joint and several co-debtors | Gesamentlike en afsonderlike medeskuldenaars

Choose the correct option: Lizelle and Kobus enter into a contract for the sale of Lizelle’s coffee shop (BestCoffee) to Kobus. Kobus is excited about buying the coffee shop because he is aware that Lizelle is currently in negotiations with an excellent coffee bean supplier (KenyaBeans) to be the sole supplier of coffee beans to BestCoffee. Lizelle and Kobus agree that Lizelle will sell BestCoffee to Kobus for R1.* million, on condition that the contract between BestCoffee and KenyaBeans is signed within three weeks from the date that Lizelle and Kobus sign the contract of sale, at which point in time Kobus will pay the full purchase price to Lizelle. The following conditions are present in this contract: --------------------------------------- Kies die korrekte opsie: Lizelle en Kobus gaan ‘n kontrak aan vir die verkoop van Lizelle se koffiewinkel (BestCoffee) aan Kobus. Kobus is baie opgewonde om die koffiewinkel te koop, want hy is bewus van die feit dat Lizelle tans besig is met onderhandelinge met ‘n uitstekende koffieboonverskaffer (KenyaBeans) om die alleenverskaffer van koffiebone aan BestCoffee te wees. Lizelle en Kobus kom ooreen dat Lizelle BestCoffee aan Kobus sal verkoop vir R1.* miljoen op voorwaarde dat die kontrak tussen BestCoffee en KenyaBeans binne drie weke geteken sal word vanaf die datum wat Lizelle en Kobus die verkoopskontrak teken, en sal Kobus op daardie datum die volle verkoopsprys aan Lizelle betaal. Die volgende tipes voorwaarde is teenwoordig in die kontrak: Question 15Answer a. Casual, negative, and resolutive conditions. | Toevallige, negatiewe en ontbindende voorwaarde. b. Casual, positive and resolutive conditions. | Toevallige, positiewe en ontbindende voorwaarde. c. Mixed, negative and suspensive conditions. | Gemengde, negatiewe en opskortende voorwaarde. d. Mixed, positive and suspensive conditions. | Gemengde, positiewe en opskortende voorwaarde.

Choose the correct option: Thandi sells a cow to Paul. She does not know that the cow was run over by a reckless driver and had died the previous day. --------------------------------------- Kies die korrekte opsie: Thandi verkoop ‘n koei aan Paul. Thandi weet egter nie dat die koei die vorige dag deur ‘n onverskillige motoris doodgery is nie. Question 16Answer a. Paul can apply for rescission of the contract on grounds of a misrepresentation made by Thandi. / Paul kan die kontrak laat aanveg op grond van die wanvoorstelling wat Thandi gemaak het. b. The contract is valid as there was only an error in motive. / Die kontrak is geldig omdat daar net ‘n dwaling in beweegrede plaasgevind het. c. The contract is void due to impossibility of performance. / Die kontrak is nietig weens onmoontlikheid van prestasie.

True or False: No formalities are generally required for a cession to take place, unless it is required by statute. --------------------------------------- Waar of Onwaar: Geen formaliteite word oor die algemeen vereis vir ‘n sessie om plaas te vind nie tensy dit vereis word deur wetgewing. Question 17Answer a. True / Waar b. False / Onwa

Choose the correct option: A undertakes towards B that he (A) will give a particular painting to C. The agreement between A and B is known as __________________ --------------------------------------- Kies die korrekte opsie: A onderneem teenoor B dat hy (A) ‘n bepaalde skildery aan C sal gee. Die ooreenkoms tussen A en B staan bekend as __________________ Question 18Answer a. Dept replacement / Skuldvervanging b. Contract to the benefit of a third party (stipulatio alteri) / Beding ten behoewe van ‘n derde (stipulatio alteri) c. Merger of Debts / Skuldvermenging d. Estoppel / Estoppel.

Choose the correct option: Abdul and Jonas agree that Jonas will look after Abdul’s house while Abdul is on holiday overseas. Abdul will return home on * August *, on which date Jonas will no longer need to look after the house. The agreement between Abdul and Jonas contains a: --------------------------------------- Kies die korrekte opsie: Abdul en Jonas kom ooreen dat Jonas na Abdul se huis sal omsien terwyl Abdul met vakansie is oorsee. Abdul sal op * Augustus * na sy huis terugkeer en Jonas sal vanaf hierdie datum nie meer na die huis hoef om te sien nie. Die ooreenkoms tussen Abdul en Jonas bevat ‘n: Question 19Answer a. Resolutive time clause. | Ontbindende tydsbepaling. b. Resolutive condition. | Ontbindende voorwaarde. c. Suspensive time clause. | Opskortende tydsbepaling. d. Suspensive condition. | Opskortende voorwaarde.

Sandy hears about a painting by Blessing Ngobeni that is for sale. She knows that if the painting is by Blessing Ngobeni, it will be worth around R100 *. She only wants to buy the painting if it is authenticated as a painting by Blessing Ngobeni. In order to protect herself, she negotiates for the inclusion of the following clause: “The buyer will pay R75 *.* for the painting offered for sale by the seller, if the painting is authenticated and certified to be a painting by Blessing Ngobeni.” This is an example of: --------------------------------------- Kies die korrekte opsie: Sandy vind uit van ‘n skildery deur Blessing Ngobeni wat te koop is. Sy weet dat indien dit wel ‘n skildery deur Blessing Ngobeni is, dit ongeveer R100 * werd sal wees. Sy wil net die skildery koop indien dit bevestig word as ‘n skildery deur Blessing Ngobeni. Om haarself te beskerm onderhandel sy vir die insluiting van die volgende klousule: “Die koper sal R75 * vir die skildery wat deur die verkoper as te koop aangebied word betaal, indien die skildery bevestig en gesertifiseer word as ‘n skildery deur Blessing Ngobeni.” Dit is ‘n voorbeeld van: Question 20Answer a. A suspensive condition. / ‘n Opskortende voorwaarde. b. A resolutive time clause. / ‘n Ontbindende tydsbepaling. c. A suspensive time clause. / ‘n Opskortende tydsbepaling. d. A supposition. / ‘n Veronderstelling. e. A resolutive condition. / ‘n Ontbindende voorwaarde.

Choose the correct option: A, B, C and D are simple co-debtors towards X in the amount of R1000. --------------------------------------- Kies die korrekte opsie: A, B, C en D is eenvoudige medeskuldenare teenoor X in die bedrag van R1000. Question 21Answer a. X cannot claim R500 from A. / X kan nie R500 van A eis nie. b. X can claim R500 from A. / X kan R500 van A eis. c. X has to claim the full amount from them all. / X moet hulle almal aanspreek vir die volle bedrag.

Choose the correct option: In terms of South African law, which one of the following agreements could be void due to uncertainty? --------------------------------------- Kies die korrekte opsie: In terme van die Suid-Afrikaanse reg, watter een van die volgende ooreenkomste kan as gevolg van onbepaaldheid nietig verklaar word? Question 22Answer a. Sipho agrees to pay his attorney a reasonable fee for legal advice pertaining to his civil case. / Sipho kom ooreen met sy prokureur om hom ‘n redelike fooi te betaal vir regsadvies met betrekking tot sy siviele saak. b. Sipho agrees to pay his attorney a fee for legal advice pertaining to his civil case, which will be determined by calculating the number of hours which his attorney spent on his matter at an hourly rate of R2 * per hour. / Sipho kom ooreen met sy prokureur om hom ‘n fooi te betaal vir regsadvies met betrekking tot sy siviele saak, wat bereken sal word met verwysing na die aantal ure wat sy prokureur aan sy saak spandeer teen ‘n uurlikse tarief van R2 *. c. Sipho agrees to pay his attorney a lump-sum of R15 * for legal advice pertaining to his civil case. / Sipho kom ooreen om sy prokureur ‘n lompsom van R15 * te betaal vir regsadvies met betrekking tot sy siviele saak. d. Sipho agrees to pay his attorney a fee of R5 * (paid in two instalments of R2 * each) for legal advice pertaining to his civil case. / Sipho kom ooreen met sy prokureur om hom ‘n fooi van R5 * te betaal (betaalbaar in twee paaiemente van R2 * elk) vir regsadvies met betrekking tot sy siviele saak.

True or False: A concludes a contract with C on behalf of B. At the time of the contract, A was not authorised to do so. B, however, performs under the contract. This means that he tacitly ratifies the contract through conduct. --------------------------------------- Waar of Onwaar: A gaan namens B ‘n kontrak met C aan. Ten tyde van die kontrak het A egter nie volmag gehad nie. B presteer egter in terme van die kontrak. Dit beteken dat hy die kontrak stilwyend deur sy gedrag geratifiseer het. Question 23Answer a. True / Waar b. False / Onwaar

Choose the correct option: Jacob orders a luxury German manufactured sports vehicle from Lux-Cars in Germany for R12 million. The luxury vehicle is transported by ship from Germany to South Africa. During an extreme storm at sea, the ship and its cargo sank off the coast of Angola. It will cost R220 million to salvage the ship and the cargo. Assume South African law applies. The contract between Jacob and Lux-Cars is: --------------------------------------- Kies die korrekte opsie: Jacob bestel ‘n luukse Duits vervaardigde sport voertuig van Lux-Cars in Duitsland vir R12 miljoen. Die luukse voertuig word per skip vervoer van Duitsland na Suid Afrika. Gedurende ‘n verskriklike storm op die see, sink die skip en sy vrag langs die kus van Angola. Dit sal R220 miljoen kos om die skip en sy vrag te herwin. Aanvaar dat die reg van Suid-Afrika van toepassing is op die kontrak. Die kontrak tussen Jacob en Lux-Cars is: Question 24Answer a. Invalid because even if the luxury car can be recovered, it will be damaged beyond repair. / Ongeldig, want selfs al word die luukse voertuig herwin, sal dit onherstelbaar beskadig wees. b. Valid because the luxury vehicle has not been destroyed and is still at the bottom of the sea. Therefore, performance is still objectively possible. / Geldig, want die luukse voertuig is nie vernietig nie en is steeds op die bodem van die see. Daarom is die prestasie steeds objektief moontlik. c. Valid because the luxury vehicle has not been completely destroyed and performance is still subjectively possible. / Geldig, omdat die luukse voertuig nie heeltemal vernietig is nie en prestasie dus steeds subjektief moontlik is. d. Invalid because the cost of performance will be disproportional to the value of the performance. / Ongeldig, want die koste van prestasie is buite verhouding tot die waarde van die prestasie.

rue or False: A concludes a contract with B. A mistakenly believes that B has breached the contract and he now tries to cancel the contract without any good grounds to do so. As a result A has now breached the contract. --------------------------------------- Waar of Onwaar: A gaan ‘n kontrak met B aan. A is verkeerdelik onder die indruk dat B kontrakbreuk gepleeg het en probeer die kontrak kanselleer sonder enige goeie gronde. Daardeur pleeg A nou kontrakbreuk. Question 25Answer a. False / Onwaar b. True / Waar

Choose the correct option: A and B conclude a contract in terms of which A will build B a house for R500 *. As a result of poor workmanship, the wall in the living room cracks within a month from B moving in. A piece of plaster falls on B’s 9 month old baby. The baby received medical treatment for bruises, but she is severely traumatised and keeps crying. They now have to take the baby to a child psychologist. --------------------------------------- Kies die korrekte opsie: A en B sluit ‘n kontrak dat A ‘n huis vir B sal bou vir R500 *. As gevolg van swak vakmanskap kraak die sitkamermuur ‘n maand nadat B ingetrek het en val ‘n stuk van die pleister op sy * maande oue baba. Die baba ontvang mediese behandeling vir kneusings, maar is erg getraumatiseer en wil nie ophou huil nie. Hulle moet gevolglik die baba na ‘n kindersielkundige neem. Question 26Answer a. B can claim contractual damages from A for medical costs but also for the damage to the house. / B kan kontraktuele skadevergoeding eis van A vir die bedrag van die mediese kostes, asook vir die skade aan die huis. b. B can claim contractual damages for the medical expenses and for pain and suffering as the pschycologist found that the baby experienced severe trauma as a result of the incident. / B kan kontraktuele skadevergoeding eis vir alle mediese onkostes en vir pyn en lyding aangesien die sielkundige bevind dat die baba ernstige trauma beleef het as gevolg van die insident. c. B can only claim contractual damages for the damage to the house. / B kan net kontraktuele skadevergoeding eis vir die bedrag van die skade aan die huis.

Choose the correct option: Which one of the following agreements could be void due to uncertainty? --------------------------------------- Kies die korrekte opsie: Watter een van die volgende ooreenkomste kan nietig wees op grond van onsekerheid? Question 27Answer a. Katrien agrees to pay her auditor a reasonable fee for the annual audit. / Katrien stem in om haar ouditeur ‘n redelike fooi vir die jaarlikse oudit te betaal. b. Katrien agrees to pay her auditor a flat fee of R250 * for the annual audit. / Katrien stem in om haar ouditeur ‘n vaste fooi van R250 * vir die jaarlikse oudit te betaal. c. Katrien agrees to pay her auditor a fee of R5 * per hour for the annual audit. / Katrien stem in om haar ouditeur ‘n fooi van R5 * per uur vir die jaarlikse oudit te betaal. d. Katrien agrees to pay her auditor a fee of R100 * plus the costs incurred by the auditor in finalising the audit. / Katrien stem in om haar ouditeur ‘n fooi van R100 * te betaal plus die kostes wat die ouditeur moet aangaan om die oudit te finaliseer.

Choose the correct option: Z discovers an old recipe book which belonged to her grandmother in the attic, and she concludes an agreement with her neighbour, a talented baker, to bake her one of the cakes in the book for R200. The neighbour undertakes to bake the cake over the weekend when she has some free time. During the course of the weekend, she goes to Z’s house * times and also tries several times to call her, but she is unable to get hold of Z to get the recipe from her. She leaves * messages in which she indicates that she is now ready to bake the cake and that the recipe is all that she now needs. A week later she receives a letter from Z’s attorney in which she is accused of breach of contract. --------------------------------------- Kies die korrekte opsie: Z ontdek ‘n ou resepteboek van haar ouma op die solder en gaan sy ‘n kontrak met haar buurvrou aan, wat ‘n baie goeie bakster is, om een van die koeke daarin vir haar te bak vir R200. Die buurvrou onderneem om die koek oor die naweek te bak wanneer sy vrye tyd het. Gedurende die naweek gaan sy * keer na Z se huis en bel sy ook verskeie kere, maar kry sy nie vir Z in die hande om die resep by haar te kry nie. Sy laat * boodskappe waarin sy noem sy dat sy gereed is om die koek te bak en dat sy net wag vir die resep. Die week daarna ontvang sy ‘n prokureursbrief waarin sy deur Z van kontrakbreuk beskuldig word. Question 28Answer a. The attorney has it wrong, as it is Z who breached the contract in the form of mora creditoris. / Die prokureur is verkeerd, want eintlik is dit Z wat kontrakbreuk gepleeg het in die vorm van mora creditoris. b. The attorney has it wrong, as it is Z who breached the contract in the form of prevention of performance. / Die prokureur is verkeerd, want Z het kontrakbreuk gepleeg in die vorm van onmoontlikmaking van prestasie. c. The attorney is correct as she fell into mora debitoris when she failed to bake the cake over the weekend as agreed. / Die prokureur is korrek, want sy het in mora debitoris verval toe sy nie die koek die naweek gebak het soos ooreengekom nie.

Choose the correct option: Where an agent does not have authorisation but negligently creates the impression that he was authorised to conclude a contract on behalf of a principal, the third party: --------------------------------------- Kies die korrekte opsie: Waar ‘n verteenwoordiger nie volmag het nie, maar nalatiglik die skyn skep dat hy volmag het om namens ‘n prinsipaal ‘n kontrak te sluit, sal die derde: Question 29Answer a. cannot hold the agent liable as he was not authorised to do so. / nie die verteenwoordiger aanspreeklik kan hou nie, want daar was nie volmag nie. b. can hold the agent liable on the basis of estoppel. / die verteenwoordiger aanspreeklik kan hou op grond van estoppel. c. can hold the agent liable on the basis of an implied warranty. / die verteenwoordiger aanspreeklik kan hou op grond van stilswyende waarborg