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Paulus owes money to Paul. The full amount of the debt is secured by a suretyship contract in which Evert is the surety, and also by a cession to Paul of Paulus’s right to receive payment from Ryan.
Which ONE of the following statements is INCORRECT?
1 Paulus may cede to Evert his right to receive payment from Ryan.
2 Paulus is not entitled to sue Ryan for the money he owes him in order to pay Paul.
3 Evert is not entitled to the benefit of division if Paul attempts to recover the entire debt from him.
4 Evert may possibly obtain a right to the money which Ryan owes to Paulus if he settles the entire debt
A group of twenty-two auditors meet to consider forming a partnership. They meet to agree on the contribution each one of them will make to the partnership. Some of the partners want the partnership to deal only with audits, and others want it to deal only with tax matters.
Which ONE of the following issues must be addressed before the requirements for a partnership will be satisfied?
1 The parties must determine a common objective.
2 The parties need to reduce the number of prospective partners to less than twenty.
3 The parties need to put the agreement in writing.
4 The parties must stipulate the amount each member must contribute.
Khomotso and Stanford, an estate agent, enter into a contract in terms of which Stanford undertakes to sell a poultry farm on behalf of Khomotso. They agree that if Stanford succeeds in selling the property. Their contract also provides that Khomotso will not be liable for expenses incurred in the execution of the task.
Which ONE of the following statements is CORRECT?
1 Khomotso need not pay Stanford any commission if Stanford sells the farm, since a contract of mandate is a gratuitous undertaking to perform a task.
2 The contract between Khomotso and Stanford is invalid since it excludes Khomotso’s liability for expenses incurred during the execution of the task.
3 The contract between Khomotso and Stanford is not terminated when Stanford’s estate is sequestrated.
4 Khomotso may only revoke their contract for a legally acceptable reason; otherwise, the revocation itself many amount to a breach of contract
Read the following scenario and then answer the question by choosing the correct option:
It is the second century BC. Flavius, a Roman merchant, enters into an agreement with
Nikolaus, a Greek potter, to send him two hundred finely crafted Greek urns. However, when
the urns finally arrive three months later, Flavius claims that the quality of the urns is not as
agreed. Flavius refuses to accept the shipment and tells Nikolaus that he considers the contract
to be void. Nikolaus is very distraught as he has travelled far in order to personally deliver the
urns to Flavius in Rome; Nikolaus needs to sell the urns to be able to afford the journey home.
He decides to take the dispute to court.
Which official will administer justice, and determine the civil procedure that the parties should
follow in their lawsuit? Choose your answer from one of the following options:
(1) The aediles curules
(2) The praetor peregrinus
(3) The praetor urbanus
(4) The emperor
On 10 August 2020 Lina concludes an agreement with the AMG Insurance Company in terms of which the company undertakes to compensate Lina for any damage that she might suffer if the house that she inherited from her father, should be damaged by fire. She undertakes to pay a monthly premium of R300 and the first premium will be due on 31 August 2020. On 20 August 2020, the house is completely burnt down.
Which ONE of the following statements is CORRECT?
1 As a valid contract of insurance came into existence on 10 August 2020, AMG is bound to compensate Lina for the damage.
2 A valid contract of insurance will only come into existence when the first premium is paid by Lina.
3 Although a valid contract of insurance was concluded on 10 August 2020, Lina will only be covered by the contract when the first premium has been paid.
4 As Lina inherited the house and did not pay for it herself, she does not have an insurable interest in the house and the contract is invalid.
Chris and Paul enter into a contract in terms of which Paul has to deliver a dozen bottles of export wine to Chris. Chris has already paid the purchase price. Paul now indicates that he does not intend to perform in terms of the contract.
Which ONE of the following types of breach of contract has Paul committed?
1 Repudiation
2 Mora debitoris
3 Positive malperformance
4 Prevention of performance
They agree to meet the next Friday at 6 o’clock in front of Sterkinekor. Peter arrives at Sterkinekor at the agreed time, but Maureen is not there. After he has waited for more than two hours, he decides to go home and consults his Commercial Law textbook to see whether he can take legal action against Maureen for not honouring their appointment. Only later Peter learns that Maureen’s car broke down on her way to Sterkinekor.
Which ONE of the options provided below will complete the following sentence CORRECTLY?
Peter’s appointment with Maureen was NOT a contract because ...
1 their appointment was not in writing and signed by them.
2 they did not have the intention to create legally enforceable obligations.
3 it was not physically possible for Maureen to honour their appointment.
4 it was not juridically possible for Maureen to honour their appointment.
Morake owes Ismael an amount of R70 000. Morake and Ismael enter into an agreement in terms of which Ismael will cancel 30% of the debt if Morake agrees to sponsor Ismael’s visit to the “Blue House” brothel.
Which ONE of the following statements is CORRECT?
1 Morake and Ismael’s contract is lawful because they have reached consensus.
2 Morake and Ismael’s contract is lawful because they both have capacity to enter into juristic acts.
3 Morake and Ismael’s contract is unlawful because their agreement is partially enforceable.
4 Morake and Ismael’s contract is unlawful because their agreement is contrary to good morals
which ONE of the following situations was a VALID contract concluded?
1 Sally engages a professional seafood caterer to provide seafood for her birthday party, to which twenty guests have been invited. All the guests confirm that they will attend Sally’s birthday party. The day before the party, ten of the guests inform Sally that they will not be able to attend the party because they prefer to attend a street party at the same time and date in Sandton.
2 Nicolas makes a new year’s resolution and undertakes that he will save R500 each month by paying R500 into his savings account on the first day of each month.
3 Peter purchases a new pair of running shoes for R600 on the official website of Nike.
4 Reeze undertakes to sell the moon and one star to Shana for R500.
Jaco is a famous inventor of new, environmentally friendly trucks. He stands in his ultra-modern workshop admiring the revolutionary new electrically powered truck that he designed for the company, Big Trucks, which still owes him R5 000 000.
This sentence contains four legal objects, one from each of the four categories of Jaco’s subjective rights. The R5 000 000 owed to Jaco is an example of …
1 a real right.
2 a personality right.
3 a personal right.
4 an immaterial property right.
