20 – 23 May 2022 BER 210

Tutorial 9

SUBMISSION BY MONDAY, 23 MAY, 17:00

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Instructions:
 Please answer the following questions by means of any of the following
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scan it in/take a photo.
 Please submit it through attaching your attempt to the link on the BER
210 ClickUp page, under the content area “Tutorial Submission Links”,
through clicking/tapping on the link “TUTORIAL 8: SUBMISSION LINK”.
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Tutorial 9

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Question 1

Jason is the director of ABC Construction (Pty) Ltd. Brian, a senior negotiator of
contracts, is under the employ of Jason in the company. Jason often gave Brian the
authority to approach clients and pitch contracts on behalf of ABC Construction.
However, Brian has lost his “magic touch” and can no longer bring in lucrative
contracts to the company. Jason then decides to give Brian’s position to Cane.
However, Jason did not notify Brian of this, therefore Brian is under the impression
that he can still negotiate and bring clients into the company. Brian heard of a tender
for the building of a reservoir in Brooklyn Estate. He approached the client (Brooklyn
Estate) and presented his course and ultimately won the tender for ABC
Construction (worth R92 million). Unbeknownst to Brian, ABC Construction no longer
accepts building projects that require concrete as the main material. Thus, Jason
rejects the project and Brooklyn Estate is left with no company to build their
reservoir.

Explain to Brian how to best deal with the situation since he already signed a
contract on behalf of ABC Construction. (9- half marks awarded)

Answer:
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Question 2

Jude Bellingham is a 16-year-old footballer whose talent has left everyone amazed.
Kaizer Chiefs, based in Naturena, is interested in granting him his first professional
contract. However, as it stands, Bellingahm is requested to have his parents come to
sign the contract on his behalf. Explain the kind of authority that his parents exercise
in signing the contract on Bellingham’s behalf.

It is expected that Jude Bellingham will earn R 70 000 per month while discussing
the contract with the club, his agent and parents. However, on the day of signing the
contract, his parents are presented with a contract worth R 35 000 per month. With

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Tutorial 9

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prior knowledge of their son’s wage demands, Jude’s parents sign the contract
claiming that their son is underage and the money is enough for him. Explain which
duty was breached by Bellingham’s parents. (2)

Answer:
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Question 3

Danielle, a successful business owner, decides to buy a town house in Umhlanga for
R3,7 million. However, while she was away on a trip to Mauritius, South Africa
underwent a total lockdown and the Covid-19 restrictions prevented international
flights from landing at all major airports in South Africa. As a result, Danielle can
only travel back to South Africa after two weeks. In order to urgently complete the
purchase of the townhouse, Danielle asks her trusted friend, Mduduzi, to sign the
documents on her behalf.

3.1 State the legal term under which Mduduzi will represent Danielle? (2)

3.2 Indicate the source of authority that Mduduzi must act on John’s behalf. (2)

3.3 Discuss the formalities (if any) that the parties must comply with for Danielle
to grant authority to Mduduzi? (2)

3.4 When will the authority given by a principal to an agent require any formalities
to be adhered to? (3)

3.5 While in Umhlanga, Mduduzi meets up with his long-time friend Thembelihle.
Thembelihle informs Mduduzi that she is in the process of selling her Flat in
Umhlanga for R2,6 million. The location of the flat is in prime condition and if

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bought, the buyer is assured of reaping big from turning the property into a
Guest House. Mduduzi decides to purchase Thembilihle’s flat without
Danielle’s approval. On arrival in South Africa, Mduduzi hands over the deed
of transfer to Danielle. Danielle rejects the deed of transfer and mentions to
Mduduzi that she wants a town house. Explain Danielle’s legal position. (3)

3.6 Danielle decides to fly to Umhlanga to go see if the house she intended to buy
is still available. She passes by the flat purchased by Mduduzi and realises it
is a more lucrative investment than the town house. Explain what Danielle
should do if she changed her mind and now wants to keep the flat. Are there
any formalities? (2)

3.7 How should Danielle go about executing your answer in (1.6) above? (4)

Answer:
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Question 4

Indicate whether the following statements are true/false (1 mark each)

a. A principal cannot approve certain juristic after the agent has already
performed.
b. An agent can only be given authority by use of a contract.
c. Similar to delegation, authority is a tripartite agreement between the principal,
agent and third party.
d. The Act of agency refers only to juristic acts.
e. An agent has no authority if the principal did not give authority in writing.
f. An agent bears no responsibility for the legal consequences arising from an
authority juristic act.

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[2 Marks]

Answer:
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Question 5

Thabo’s son has show jumping lessons with Pete. Thabo asks Pete to select and
purchase an Irish sport horse for his son for under R30 000 when Pete goes to the
farm faire. At the farm faire, Pete agrees with Teresa to purchase her Irish sport
horse for R30 000. Teresa wants to sell her horse as she sustained injuries and will
not be riding any more. She agrees to “throw in her horse trailer as a sweetener for
the deal”. Even though Pete knows that there are better Irish sport horses to buy on
that faire for under R30 000, he intends to keep the trailer for himself without telling
Thabo about the “sweetener to the deal”. Pete does not tell Teresa that he is buying
the horse for and on behalf of Thabo.

Discuss the duty(ies) that Pete breached. (5)

Answer:
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Question 6

John asks his daughter’s horse-riding instructor, Pete, to buy a Hanoverian show-
jumping horse for his (John’s) daughter when Pete goes to the farm faire. John
agreed to pay Pete a fee of R500 for selecting and purchasing the horse for John.
John specifically emphasizes to Pete that she wants a Hanoverian show-jumping
horse and that John does not want to pay more than R20 000. While Pete is at the
farm faire, he meets Katrin who wants to sell her Irish sport horse for R25 000. Pete
knows that Kartin won the 2019 World Show-Jumping Championships with this Irish

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sport horse. Pete agrees with Katrin to buy the Irish sport horse for R25 000. When
Pete delivers the Irish sport horse to John, John refuses to accept the horse. Whilst
the Irish sport horse remains at the stables, John’s daughter rides it and tells her dad
that it is a fantastic show-jumping horse.

6.1 Explain what John should do if he changes his mind and decides to buy the
horse. (4 – half marks awarded)

6.2 How should John go about executing your answer in (6.1) above? (5)

Answer:
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END