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Question 1

It is not valid because it lacks consideration/price. Timothy and John simply agreed on
how they would want the payment done but for the contract to be valid, there need to be
a value for the Citi Golf.
A has no legal capacity to sell his uncles house. There is no principal agent relationship
giving A undisturbed rights to sell the house therefore the contract is not valid
Merx must be merchantable: must belong to someone and be capable of being sold
commercially. A star in the sky does not belong to anyone thus cannot be a merx to
necessitate a valid contract.
Toms daughter is a minor in the eyes of the law therefore lacks capacity to enter into
valid contracts.
Eddy and Tom did not determine a consideration for the Chevrolet thus there is no valid

Question 2
The credit receiver is prohibited from resiling from the credit agreement and from
claiming repayment of any amount paid by him in terms of the credit agreement if
without any reluctance on his part to accept performance in accordance with such credit
No credit grantor shall require or induce any credit receiver to acknowledge the receipt
of any goods or service to which any credit agreement relates unless those goods have
in fact been delivered or such service has in fact been rendered by the credit grantor to
the credit receiver
No person shall be a party to a credit agreement or any other agreement or document in
terms of which or which has the effect that an earlier credit agreement is cancelled and
substituted by a later credit agreement in terms of which the goods or service, or any
part thereof, to which that earlier agreement relates, and any other goods or service, are
sold, rendered or leased to the credit receiver concerned
A credit provider may only begin legal proceedings against a consumer -
After a section 129 letter of demand has been sent to the person owing the
money, and
after 10 working days have passed since delivery of the written notice,.
Dora furniture must send a written notice to Beatrice. Beatrice will have five working
days to respond by -
making arrangements to pay the money they owe, or
consulting an attorney, or
informing the court that they intend to defend themselves (file a Notice of
Intention to Defend).
If Beatrice signs the section 57 document and then defaults on his payments (in other
words, she doesnt stick to the agreement), or he signs the Section 58 or ignores the
summons, then the credit provider is allowed to get a court order to repossess goods. A
sheriff of the court brings the court order to the consumers home. The sheriff of the
court can take and sell as much property as is necessary to pay off the debt. The first
time the sheriff of the court visits is for purposes of making a list of the consumers
The second time the sheriff comes, s/he will take possessions away. The sheriff is the
only person who can remove possessions and must have a court order to do this. In
addition he or she must get Beatrices permission to enter their house or flat and should
not come in the middle of the night or when she is not at home.

Question 3
A suspensive condition is a contractual term which suspends the operation of the
contractual obligations in terms of the contract until the condition has been fulfilled.
Upon conclusion of an agreement containing a suspensive condition, a valid contract
arises and a binding contractual relationship exists from which the parties cannot resile.
Although there is an existing binding contractual relationship, the operation of the
contractual rights and duties are suspended until the condition has been fulfilled.
Although conditional, the rights and duties exist. On the other hand, a resolutive
condition is a contractual term which renders the continued existence of the contract
dependent on the occurrence (or non-occurrence) of a specified uncertain future event.
If an agreement contains a resolutive condition, a binding contract comes into existence
immediately upon the conclusion of the contract and the contractual rights and duties
become operative and are immediately enforceable.
Question 4
Every contract has representations and warranties, which are basically the underlying
matters or facts as they are being presented in terms of the contract. Jandice
Distributors made a representation by virtue of their flyer. Black's Law Dictionary defines
a representation as "A presentation of fact -- either by words or by conduct -- made to
induce someone to act, especially to enter into a contract." A warranty generally moves
from the present to the future. The product that you are buying is warranted as being
free of defects, and the company agrees to fix any defects for a specified amount of
time into the future. Since the problem with the wiring is a latent defect because
microwave wiring is inside and could not be determined by a naked eye, Jandice has a
duty to Anna.
Anna has two actions available to her: actio redhibitoria' and 'actio quanti minoris'.
The 'actio redhibitoria', known in English as the redhibitory action, allows Anna to claim
a return of performances by which she would return the object of the sale and she would
receive the purchase price back. This was used where the latent defect was so material
he could not use the thing for the purpose it was boughtas is the case for the microwave
which stopped working.
The 'actio quanti minoris' on the other hand was an action which allowed a reduction in
the purchase price, and therefore the purchaser could recover some of the purchase
price he/she paid.

Question 5
Contract is perfecta when 3 requirements met:
Merx must be determined, not merely determinable
Price must be determined, not merely determinable
Contract not subject to a suspensive condition
Voetstoot means an item is sold as it is. The buyer must make decisions based on what
they see and cannot claim damages for latent defects. For example when buying items
from the auction, the voetstoots clause applies meaning what you see is what you buy,
the auctioneer is not bound for any unseen defects at time of sale.
Duties of the seller (John)
Duty of seller to deliver merx (motorcycle)
Duty of safe-keeping: In period between conclusion of contract and delivery,
John has a duty to look after the goods. John is liable for harm caused to goods
in this period as a result of fault on his part. The risk of accidental damage to
goods (not caused by fault of seller) lies with buyer once contract is perfecta.
Duties of the buyer (Bob)
Payment of the purchase price
Accepting delivery