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STUDY GUIDE & GENERAL COURSE INFORMATION

Department of Mercantile Law

COMMERCIAL LAW (KRG 110)

Last revised:
January 2020

© Copyright reserved
Table of Contents
PART A: GENERAL COURSE INFORMATION ....................................................................... 1
1. Introduction ................................................................................................................... 1
1.1 Introduction ............................................................................................................ 1
1.1.1 Welcome to Commercial Law (KRG 110) ......................................................................................................... 1
1.1.2 Transformation of the curriculum (KRG 110) .................................................................................................... 1
1.2 Lecturers for Commercial Law (KRG 110) .............................................................. 2
1.3 Timetable ................................................................................................................ 3
1.4 Administrative matters ........................................................................................... 4
1.5 Study material and purchases ................................................................................ 4
1.6 Grievance procedures ............................................................................................. 5
1.7 Educational approach ............................................................................................. 5
1.8 Responsibilities of the student and what is expected of an KRG110 student ........ 6
1.8.1 Disciplinary code for students (Rules prescribed by the University Council) ............................................. 6
1.8.2 Skills and competence ........................................................................................................................................... 8
1.8.3 CHE Qualification Standard................................................................................................................................. 8
1.8.4 NQF Level descriptors ........................................................................................................................................... 9
2. Module information ..................................................................................................... 10
2.1 Purpose of the module ......................................................................................... 10
2.2 Credit map and notional hours............................................................................. 10
2.3 Student preparation .............................................................................................. 11
2.4 Module structure ................................................................................................... 11
3. Assessment ................................................................................................................. 11
3.1 Assessment plan .................................................................................................. 11
3.2 Assessment criteria .............................................................................................. 11
3.3 Calculation of semester mark ............................................................................... 12
3.4 Plagiarism ............................................................................................................ 12
3.5 Sick Test Policy ..................................................................................................... 13
3.6 Course plan .......................................................................................................... 13
PART B: COURSE CONTENT ............................................................................................... 16
PART C: RULES, REQUIREMENTS AND GUIDELINES........................................................... 32
Special needs ...................................................................................................................... 32
Rules relating to perusal of formal assessment documents will be provided on ClickUP.. 32
Student support................................................................................................................... 32
Addendum A: Support services .......................................................................................... 34
PART A: GENERAL COURSE INFORMATION
1. Introduction
1.1.1 Welcome to Commercial Law (KRG 110)
Welcome! In this course you will be learning about the law and the important role it plays in your field
of study, to you personally and in society as a whole. This introductory document should be read in
conjunction with your prescribed textbook and the study guide.

The law, as a system of legal rules and as rights that a person has, is an integral part of our society and
attempts to regulate all aspects of our society in a peaceful manner. This would include the commercial
and business sphere (in which you will operate) as well as the private lives of individuals and between
individuals and the State. The law will also provide context to your field of study and a framework in
which you will acquire the necessary skills to be successful (grow and thrive).

The law as a science could be compared to a tree: a living, growing organism which consists of many
parts all of which have individual functions that assist in the successful growth and sustainability of the
tree as a whole. Although the tree consists of different parts (roots, tree trunk, branches, leaves) each
with their own purpose and function, the tree should be seen as whole: providing protection, sustenance,
growth and structure. In a similar manner the law should also be seen as a whole with each component
or part of the law having its own purpose and function. The law attempts to provide protection to the
vulnerable in the society and a balance between rights, duties and rules for the growth and sustainability
of the community. Most importantly providing structure.

The tree needs to adapt to changing external circumstances just as the law will evolve and adapt to the
changing views of the community, public policy and advances in technology. The tree may endure fires,
droughts, floods, frost which will all have an effect on the growth of the tree and the way in which the
tree will adapt to survive and ultimately thrive. The law also undergoes change due to historical, political,
social and economic events which necessitates doing away with certain rules, adapting others or creating
new rules for the community to survive and ultimately thrive.

The tree forms part of a whole eco-system which is interrelated. Similarly the law of a country (such as
South African law) also has a place as part of international and foreign law.

1.1.2 Transformation of the curriculum (KRG 110)


• KRG 110 incorporates and addresses curriculum transformation by incorporating the University
of Pretoria’s “Reimagining curricula for a just university in a vibrant democracy” transformation
drivers. These drivers of curriculum transformation are as follows:
(i) “Responsiveness to social context”: A transforming curriculum is one that registers and
is attuned to local and global contexts, histories, realities and problems. A transforming
curriculum acquires concreteness, relevance and purpose by being located within a
specific social, environmental, intellectual, political and legal context. Questions
concerning development, social justice and globalisation, among other issues, should be
central to teaching and research. This further entails taking into account the socio-
economic climate in South-Africa. It is also important to take cognisance of the fact that
these pieces of legislation were promulgated post-Constitution and were therefore
written with the constitutional imperatives or outcomes in mind.
(ii) “Epistemological diversity”: Curriculum transformation is a constant encouragement of
epistemological diversity. Diversifying epistemology means bringing marginalised
groups, experiences, knowledges and worldviews emanating from Africa and the
Global South to the centre of the curriculum. It involves challenging the hegemony of

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Western ideas and paradigms and privileging local and indigenous conceptions and
narratives, while recognising the global context.
(iii) “Renewal of pedagogy and classroom practices”: Curriculum transformation involves
continuously rethinking and re-evaluating the ways in which we learn and teach. This
includes responsiveness to and training in new pedagogical methodologies and
approaches within disciplines. It further entails: Being receptive to new modes of
delivery, for example, through technological innovations in the learning process,
pursuing inquiry-led teaching and learning: Rather than testing (only or predominantly)
for memory (rote learning), students are encouraged to do more writing and research,
equipping students with skills to contribute to society and be efficient professionals.
These competencies (to mention a few) are: Literacy, numeracy, conceptual / abstract
thinking, critical thinking, ethics, accountability and integrity, problem solving,
communication, interpersonal skills, service to society and community.
(iv) “An institutional culture of openness and critical reflection”: A transforming curriculum
exhibits understanding that a ‘hidden curriculum’ can be found in the spaces, symbols,
narratives and embedded practices that constitute the university and in the diversity, or
lack thereof, of the staff and student cohort. In addition, curriculum transformation
involves continuously rethinking and re-evaluating the ways in which we learn and teach.
This includes responsiveness to and training in new pedagogical methodologies and
approaches within disciplines. It further entails (but is not limited to) advancing an
intellectual culture of critical reflection about both academic and public matters of
concern and openness to difference based on human dignity.

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1.2 Lecturers for Commercial Law (KRG 110)

Consulting
Name Contact Details
hours

Monday:
08:00 -10:00
Law Building Room 3-24
Module Tuesday:
Prof B Kuschke 012 420 2418
coordinator 13:30 -15:30
birgit.kuschke@up.ac.za
Thursday:
09:30 -11:30

Monday:
08:00 -10:00
Lecturer Law Building Room 3-24
Tuesday:
(3 February – Prof B Kuschke 012 420 2418
13:30 -15:30
20 March) birgit.kuschke@up.ac.za
Thursday:
09:30 -11:30

Will be
Lecturer Law Building Room 3-26 announced
(1 April – 25 Prof S Renke 012 420 4336 later: Please
May) stefan.renke@up.ac.za see ClickUP

1.3 Timetable
GROUP 1 GROUP 2
Monday Tuesday
10:30 – 11:20 12:30 – 13:20
Thuto 3-2 Thuto 1-2

Tuesday Wednesday
10:30 – 11:20 14:30 – 15:20
Thuto 3-1 Thuto 3-2

Thursday Thursday
07:30 – 08:20 12:30 – 13:20
Thuto 3-1 Thuto 1-2

You must attend three formal lectures of 50 minutes each per week of which 1 (one) may be used for a
formal mandatory tutorial lecture.

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Announcements, which may alter the information contained in this document and study guide, may be
made during formal lectures. Students must remain up to date with these announcements, as the course
leader has the right to change the contents or structure of this course if the need should arise. All relevant
announcements will also be put on ClickUP.

Attendance of formal lectures is not a prerequisite for admission to the examination. However,
experience has taught that non-attendance or irregular attendance of lectures usually results in a failure
to make the grade. Attendance of lectures is therefore of the utmost importance: Firstly, because the
discussions and explanations during lectures of the prescribed study material form part and parcel of
test and examination questions and secondly, because important announcements are made in class and
information is furnished on academic and administrative matters. If a lecture is not attended for any
reason, enquiries must be made about such announcements and information. Absence of lectures will not
be accepted as an excuse for lack of knowledge or incorrect information.

1.4 Administrative matters


Announcements will be made during lectures and/or on ClickUP.

All administrative arrangements such as the submission of doctor’s notes can be made with the department
administrators, namely, Ms Moipone Williams: (012) 420 2363 (Law room 3-8)
(moipone.williams@up.ac.za) or Ms Kate Tabane: (012) 420 2346 (Law room 3-7)
(kate.tabane@up.ac.za).

1.5 Study material and purchases

1. The prescribed textbook for this subject is Nagel et al Commercial Law 6th edition (2019) Lexis
Nexis. PLEASE ENSURE THAT YOU PURCHASE THE NEW 6th EDITION available from January
2020 in the book stores, and not the outdated 5th edition.

2. Class notes: Slides pertaining to the lectures will be provided on ClickUP before the lecture to
further enable students to prepare properly for the lecture. Please note that these slides are
simply a skeleton of what is to be discussed during the lecture and is it not sufficient for any
assessments. You will not pass or understand KRG110 if you only study these. It is essential that
you prepare the necessary work (including questions that should be completed) before each
lecture and compile your own notes.

Please note:
• The course leader can at any time in class or on ClickUP prescribe additional reading material,
thus it is imperative that lectures are attended.
• Commercial Law in South Africa is ever-evolving and changes annually. Accordingly, KRG110
course content is amended on an annual basis and it is NOT recommended that students
simply rely on lecture notes from previous years or study any previous questions,
tests/examinations.
• Do not “spot” any material. Be very careful for any messenger or social media platforms (for
example - WhatsApp groups) where “students” make their own announcements and
directly/indirectly mislead other students (which has happened in the past). Only official
announcements on ClickUP or made during lectures by the lecturers should be noted as
authoritative and an acceptable means of communication.

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1.6 Grievance procedures
All grievances must be SUBMITTED IN WRITING with specifics of the incident or the nature of the
complaint. It is imperative that the student follows the procedure outlined below in order to resolve issues
and to avoid unnecessary duplication of issues or ending up at the wrong person. The procedure is set
out as follows:

• Consult the LECTURER concerned about your grievances/concerns.


• If the matter has not been resolved,
STEP 1
• Consult the CLASS REPRESENTATIVE (The primary function of the Class Representative is to
serve as a two-way communication channel between the class and the lecturer).
STEP 2 • If the matter has not been resolved,

• Consult the COURSE LEADER (large modules with multiple lecturers)


• If the matter has not been resolved,
STEP 3

• Consult the HEAD OF DEPARTMENT


• If the matter has still not been resolved,
STEP 4

• Consult with the DEPUTY DEAN of the Faculty


STEP 5

1.7 Educational approach


The role of the lecturer is to facilitate learning. The lecturer provides the framework and necessary skills
to enable students to actively learn. The purpose of lectures are to enable students to test their work
prepared and ensure that they have a good and thorough understanding of the prepared work. The
lecturer will follow an enquiry-based approach throughout the module and is not there to only emphasise
important parts of the work. Most of the lectures are structured in such a way that students will have to
interact with other students and the lecturer

ClickUP is very important in this module and must be consulted at least twice per week for new
announcements and material. Various assessments will also be made available through ClickUP and
submitted on ClickUP.

SLIDES WIL BE PLACED ON CLICKUP BEFORE THE SPECIFIC LECTURE – BUT THESE SLIDES WILL MERELY
SERVE AS GUIDELINES FOR STUDENTS AND ARE NOT SUFFICIENT FOR ANY TYPE OF ASSESSMENT IN
THIS MODULE.

The lecturers do not give permission to students to record the lecturers in any way during lectures or
consultation times as it constitutes breach of the lecturers’ privacy and do not constitute official class notes.

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1.8 Responsibilities of the student and what is expected of a KRG 110 student

1.8.1 Disciplinary code for students (Rules prescribed by the University Council)

The University of Pretoria’s Disciplinary Code: Students is based on, and informed by, the principles of
academic integrity and honesty, as well as appropriate behaviour within the wider institutional context.
These principles are at the core of the University’s everyday activities and its main reason for existence,
namely the academic education and training of students, as well as the fostering of norms and values of
excellence in a wider sense. The Code recognises the fact that the safeguarding of the aforementioned
principles is an inherent requirement for the preservation of the integrity of the various qualifications
awarded by the University. Safeguarding such principles is essential for establishing and maintaining an
environment that is conducive to sound academic practices in general, and contribute to shaping
individuals who will add value to society. The Code provides for corrective and punitive measures to be
applied in appropriate circumstances. It aims to provide guidance to students to correct behaviour where
necessary. Furthermore, the Code promotes the fair and lawful adjudication of disciplinary enquiries and
the imposition of appropriate disciplinary measures. A specific objective of the Code is to, in the interest
of both students and the University, initiate and finalise all disciplinary proceedings as speedily as
possible without undue delay. In terms of this Code the University shall implement all reasonable measures
to protect the interests of students, staff members, contractors and members of the public, on all its
campuses or other premises. The Code also has as its objective the promotion and protection of the
interests of the University as an educational institution. The Code is not intended to be a comprehensive
set of rules and regulations that makes provision for every possible objectionable and punishable act by
a student, and as such, the rules and regulations below will not be assigned an overly literal or strict
interpretation. Consequently, when evaluating the conduct of a student to determine whether such conduct
amounts to misconduct, and/or when considering whether the specific conduct of a student is covered by
a specific rule or charge, the determining factor shall at all times be the misbehaviour or wrongdoing
such a rule or regulation is aimed at.

1.1 DEFINITION OF MISCONDUCT The following acts are categorised as misconduct in terms of this
Code: If a student –
1.1.1 contravenes or attempts to contravene any instruction, regulation, rule or directive of the University;
1.1.2 refuses to obey any lawful instruction or request by any council member, lecturer, contractor, staff
member or security officer of the University, or any other person who is by law in a position of
authority or to whom authority is delegated by the University, or acts contrary to such instruction
or request;
1.1.3 is guilty of intentional or negligent conduct which results in:
1.1.3.1 the good name of the University being brought into disrepute or otherwise compromised;
1.1.3.2 the maintenance of order and discipline at the University being prejudiced or otherwise
compromised;
1.1.3.3 the proper course of teaching, research, and/or community service at the University being
prejudiced or otherwise compromised;
1.1.4 without limiting the generality of paragraphs 1.1.1 to 1.1.3, 1.1.4.1 unlawfully infringes another
person’s human rights as contained in the Bill of Rights, Chapter 2 of the Constitution, 1996;
1.1.4.2 performs an act which is an offence in terms of South African law and such an act is prejudicial
to the University or its staff, guests, contractors or students;
1.1.4.3 in University context infringes a person’s copyright or any other intellectual property right,
including but not limited to plagiarism;
1.1.4.4 in University context – a. acts in a dishonest manner or attempts to act in a dishonest manner,
which includes any form of conduct involving deception, for example theft, unauthorised possession
of property, bribery, fraud, forgery or giving false or misleading statements. (These acts do not

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constitute a closed list of possible transgressions involving dishonesty for purposes of this
paragraph); b. intimidates, assaults, attempts to assault any person or engages in fighting; c.
makes any misrepresentation with regard to any administrative process, which includes but is not
limited to the following: misrepresentations regarding academic and other records, including
degree and diploma certificates and other documents; misrepresentations regarding illness;
misrepresentations made to persuade or attempt to persuade the University to administratively
act in a way that the University would not or probably would not have acted in the absence of
such misrepresentation; University of Pretoria 31 Policies d. forges a document (which includes but
is not limited to generating a false document and/or presenting it as a legitimate document,
changing an existing document inter alia by including false or misleading information, or forging
another person’s signature on any document); e. presents a forged document, inter alia, as
described in paragraph 1.1.4.4 (d) with the aim to mislead; and/or f. plagiarises by stating, or
implying, original authorship of someone else’s written or creative work (words, images, ideas,
opinions, discoveries, artwork, music, recordings, computer-generated work), and/or by
incorporating such work or material, in whole or in part, into his or her own work without properly
acknowledging or citing the source;
1.1.4.5 uses property of the University or under the University’s control unlawfully or without permission,
or damages such property in a manner that may give rise to liability for damages;
1.1.4.6 enters or occupies or attempts to enter or occupy any University or University-controlled premises
or building or part thereof without permission;
1.1.4.7 conducts himself or herself in an indecent or improper manner on University or University-
controlled premises or at a University-related function or activity at any location or in circumstances
where he or she represents or is seen to represent the University, or is otherwise identified as a
student of the University;
1.1.4.8 in any manner infringes or attempts to infringe the freedom of movement of a student, contractor
or staff member of the University or a member of the public who is present on University or
University controlled premises or at a University-related function or activity at any location or in
circumstances where the student who causes such infringement represents or may be seen to
represent the University;
1.1.4.9 conducts himself or herself in an insulting, indecent or improper manner towards a student,
contractor or staff member of the University or a member of the public who is present on University
or University controlled premises or at a University function or activity at any location or in
circumstances where the student who conducts him- or herself in the aforementioned manner
represents or may be seen to represent the University;
1.1.4.10 in contravention of the provisions of South African law or a rule of the University, unlawfully
possesses, distributes, buys, sells, uses, and/or is under the influence of a dependency-inducing
substance (such as alcohol or drugs, including but not limited to any drug as defined in section 1
of the Drugs and Drug Trafficking Act, Act No 140 of 1992 or any act that amends or replaces
it) while present on University or University-controlled premises or at a University-related function
or activity at any location or in circumstances where he or she represents or is seen to represent
the University, or is otherwise identified as a student of the University;
1.1.4.11 accepts or attempts to obtain any benefit or information or access to information in an
inappropriate manner, which may place any student in an advantageous position academically in
relation to other students in any manner whatsoever;
1.1.4.12 intentionally or negligently provides false or incorrect information, and such action is to the
detriment or potential detriment of the University; and/or
1.1.4.13 assists or encourages another student to commit an act which constitutes misconduct.

You will note that section 1.1.1 includes contravention or attempted contravention of any regulation or
rule of the University. As such you are advise to familiarise yourself with the relevant regulations or rules
(see http://www.up.ac.za/en/yearbooks/rules).

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1.8.2 Skills and competence
The skills and competence required from a student in KRG110 is based on 3 important considerations/
documents: The CHE Qualification standard (together with the CHE report relating to the UP LLB), the
Work stream on curriculum Transformation at the University of Pretoria Reimagining curricula for a just
university in a vibrant democracy – University of Pretoria transformation document – draft framework
document (2016) and the required NQF competency level for a first year module.

1.8.3 CHE Qualification Standard


Skills
1. Critical thinking skills
The graduate is able to:
(a) recognise and reflect on the role and place of law in South African society and beyond;
(b) analyse a text and/or scenario to find the key issues, i.e., distinguish between relevant and irrelevant
information and distinguish between legal and non-legal issues;
(c) address the issues presented in a text or scenario and generate appropriate responses to the legal
issues contained in a text and/or scenario;
(d) make critical judgments on the merits of particular arguments and make and present reasoned choices
between alternative solutions;
(e) analyse, synthesise, judge critically and evaluate problems and situations; and
(f) demonstrate familiarity with legal discourse – knowledge of the conventions (and terminology) of
legal discourse and the ability to use them appropriately.
2. Research skills
In theoretical and applied research-based contexts, the graduate is able to:
(a) find, select, organise, use, analyse, synthesise and evaluate a variety of relevant information sources;
(b) determine the relative authority of relevant information sources;
(c) read, interpret and summarise information sources;
(d) present and make a reasoned choice between alternative solutions;
(e) use techniques of legal reasoning, methodology and argumentation to reach a plausible conclusion;
(f) use appropriate referencing style guidelines; and
(g) demonstrate academic integrity in research.

Applied Competence
1. Ethics and integrity
The graduate has knowledge of relevant ethical considerations in law and is able to conduct her/himself
ethically and with integrity in her/his relations within the university and beyond, with clients, the courts,
other lawyers and members of the public.
2. Communication skills and literacy
The graduate is proficient in reading, writing, comprehension and speaking in a professional capacity,
to specialist and non-specialist alike, and is therefore able to:
(a) communicate effectively by choosing appropriate means of communication for a variety of contexts;
(b) demonstrate effective oral, written, listening and non-verbal communication skills;
(c) apply communication skills to situations and genres relevant to professional practice; and
(d) engage with diverse audiences as identified by culture, language and gender.
3. Numeracy
The graduate is able to perform basic numeracy tasks related to the fields of law.
4. Information technology
The graduate is able to:
(a) access information efficiently and effectively; and
(b) use technology as a tool to research, organise, evaluate and communicate information.
5. Problem solving

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The graduate is able to identify and define the relevant issues in legal problems; identify and select the
most relevant sources and research methods (including electronic databases) likely to assist in solving
such legal problems and generate reasoned solutions.
6. Self-management and collaboration
The graduate is able to:
(a) function effectively in independent and collaborative settings;
(b) make meaningful contributions to work efforts in a group context, including problem solving;
(c) address a particular aspect of a problem or project and integrate her/his own efforts into a
collaborative effort; and
(d) critically reflect on and assess her/his own work and critique the work of others in a reasoned and
formative manner.
7. Transfer of acquired knowledge
The graduate is able to:
(a) apply knowledge to different, new and unfamiliar fields of law;
(b) deal with the development of the law on a continuous basis; and
(c) transfer legal knowledge to others.
8. Agency, accountability and service to the community
The graduate is able to recognize, reflect and apply social justice imperatives:
(a) acknowledging the capacity, agency and accountability of the legal practitioner in shaping and
transforming the legal system, promote social justice goals of fairness, legitimacy, efficacy and
equity in the legal system; and
(b) understand the professional responsibilities of the legal practitioner in service to the community.

1.8.4 NQF Level descriptors


Please take note that KRG 110 students should have at least the cognitive skills at HEQF Level 5 as set
out below (levels 5-7 applies to first, second and third year subjects whilst level 8 applies to final (fourth)
year subjects).

Lower order cognitive skills Higher order cognitive skills


HEQF Level 5 80%- knowledge of main areas, 20% - identify and solve
(FIRST YEAR) knowledge of key terms, knowledge
problems, evaluation of
literacy, standard methods, etc.
learning skills, etc.
HEQF Level 6 60%- detailed knowledge of main areas,
40% - analysing key terms,
(SECOND YEAR) knowledge of specialisation areas, etc.
evaluation of applicable
methods, etc.
HEQF Level 7 40% integrated knowledge of main areas, 60% analysis and evaluation of
(THIRD YEAR) etc. key terms, synthesising own
learning methods, etc.
HEQF Level 8 20% knowledge of a field of discipline, 80% analysis of knowledge in a
(FOURTH YEAR) understanding and knowledge of specific context, etc.
application, etc.

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2. Module information
2.1 Purpose of the module
As the name of this module indicates, the purpose is to establish a broad basis of the relevant elements
in commercial law, and in this module the focus is mainly on a brief introduction to the South African Law,
and the basic principles of law of contract. Most of these principles have their origin in South African
common law (Roman and Roman-Dutch law), but have been significantly developed and transformed
over the years by legislation and case law, with the purpose to firstly keep in touch with the needs of
the modern world and secondly to comply with the values and transformative imperative of the
Constitution of the Republic of South Africa, 1996.

In South Africa the transformation of contract law is mostly sought through special legislation that has
been enacted with specific transformative and social justice aims. These statutes, which will be discussed
where relevant in each study unit, include the Consumer Protection Act 68 of 2008, the Rental Housing
Act 50 of 1999 and the National Credit Act 34 of 2005. Where relevant, the direct impact of the
Constitution will also be reflected on.

In this module there will be a strong emphasis not only on knowing and understanding the work, but
especially on being able to apply the law to factual situations. The prescribed case law will be
particularly important in this respect. The questions in the tests and examinations will therefore mostly
come in the form of application questions, with possibly some shorter questions aimed at testing mere
knowledge and/or understanding.

2.2 Credit map and notional hours


The number of credits allocated to a module give an indication of the volume of learning required for
the completion of that module and is based on the concept of notional hours. Given that this module
carries a weighting of 10 credits, it follows that you should spend an average of 100 hours of study in
total on the module (1 credit=10 notional hours). This includes time for lectures, assignments, projects,
tests and examinations. This means that you should spend approximately 100 hours/14 week= 7,2
hours per week on KRG 110.

Notional Hours (KRG 110)

Class contact ClickUP Assessment Independent work Total


sessions /
Tutorials
28 12 30 30 100

Pre-lecture activities In-lecture activities Post-lecture activities


(a) Concepts/main points/ (a) Case studies (a) Case studies
/summaries (b) Discussions (b) Consolidation of
(b) Use slides as guiding (c) Role play activities/exercises
document in conjunction (d) Lecture (revision)
with reading material (e) Readings (c) Social networking –
(case law, chapters, discussion boards on
articles) in order to ClickUp, group
solve case study that activities
will be solved in class

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2.3 Student preparation
STUDENTS MUST COME TO EACH LECTURE FULLY PREPARED – ATTENDANCE OF LECTURES ARE
OF UTMOST IMPORTANCE. The lectures are structured in such a manner that if a student is not prepared
he or she will not grasp all the principles explained and work dealt with as all the prepared work will
not be repeated during the lectures. The table below merely serves as a guide for students as to the
work which will be dealt with. The lecturer, however, reserves the right to amend the table during lectures
or on ClickUP.

Quality instruction requires students to come to classes prepared, as this enables teaching to build
actively on a common prior knowledge.

2.4 Module structure


For module structure, please refer to Part B.

3. Assessment
3.1 Assessment plan
Assessment Marks or
Assessment type Assessment task About Due date
tool weight
Complete
Continuous Chapters 1 Memo Available from 20
assessment on 20
assessment 1 &2 Feb – 24 Feb
ClickUP
Complete
Continuous Chapters 3 Memo Available from 5
assessment on 20
assessment 2 &4 March – 9 March
ClickUP
Complete
Continuous Chapters 5 Memo Available from 16
assessment on 20
assessment 3 &6 April – 20 April
ClickUP
Complete
Continuous Chapters 7 Memo Available from 30
assessment on 20
assessment 4 &8 April – 4 May
ClickUP
Complete
Continuous Memo Available from 14
assessment on Chapter 9 20
assessment 5 May to 18 May
ClickUP
Formal semester Chapters 1
Written Memo Tuesday 7 April 40
theory test –4
Formal theory Chapters 5
Written Memo June 2020 50
exam -9

3.2 Assessment criteria

Assessment
Assessment task
type

There will be a total of 5 continuous assessment tests on ClickUP, each test dealing
with prescribed Chapters in the text book.
Continuous
The BEST 3 marks of the continuous assessment tests will count towards the semester
assessment
mark.
These assessments will be open-book, multiple choice based.

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Formal
The focus of the semester tests as well as the exam is on the application, and not
semester
only on the regurgitation, of theory
theory test

Formal Theory The focus of the semester tests as well as the exam is on the application, and not
Exam only on the regurgitation, of theory

3.3 Calculation of Semester Mark


A semester mark of at least 30% is required in order to be admitted to the examination in this module.
The semester mark is calculated as follows:
Continuous Assessment (total of best 3): 50%
Semester Test: 50%

A final course mark of at least 50% is required to pass. The final mark is the average mark of the
semester and the examination marks but a subminimum of 40% is required in the examination of this
module. Should the student fail to achieve the required subminimum, the lecturer could grant a
supplementary examination, provided that the final course mark is at least 40%.

3.4 Plagiarism
Plagiarism is a serious form of academic misconduct. It involves both appropriating someone else’s
work and passing it off as one’s own work afterwards. Thus, you commit plagiarism when you present
someone else's written or creative work (words, images, ideas, opinions, discoveries, artwork, music,
recordings, computer-generated work, etc.) as your own. Only hand in your own original work. Indicate
precisely and accurately when you have used information provided by someone else. Referencing must
be done in accordance with a recognised system. Indicate whether you have downloaded information
from the Internet. For more details visit the following websites: https://www.up.ac.za/en/about-
up/article/2013215/why-learn-about-plagiarism. Please download a QR code reader on your
cellphone. To download a QR code reader open your mobile app store (App Store, Google Play or
Windows Marketplace) and search for QR code readers.

Why learn about How do I avoid


What is plagiarism? Overstepping the mark
plagiarism? plagiarism?

© 2020 University of Pretoria 12


3.5 Sick Test Policy
• Please note that the SICK (AEGROTAT) TEST will be a WRITTEN TEST towards the end of the
semester (but before lectures end) on ALL THE WORK DONE DURING THE SEMESTER. NB:
there will be no sick test in respect to the continuous assessment tests.
• Please note that a student cannot qualify for a SICK (AEGROTAT) TEST/EXAMINATION on
a SICK (AEGROTAT) TEST/EXAMINATION.
• Mark allocations will not be adjusted and students must prepare accordingly.

ABSENCE DURING TEST / EXAMINATION


- A student who is unable to write an official semester test on the scheduled date or at the
scheduled time, must apply in writing for a sick or extraordinary test.
- Application must be made in writing, at least 3 days before the date of the test, to the
lecturer responsible for the administration of the module concerned. Where this is not
possible, the application must be made within three working days after the date of the test.
- In the case of illness, a doctor who treated the student must certify on a medical certificate
that the particular student was, in his/her opinion, not in a fit state to prepare for or to sit
for the test as a result of ill health. It is the University’s policy that a medical certificate
indicating that the student was, according to his/her own opinion, unfit to prepare for or to
sit for the test is unacceptable. The course leader reserves the right to follow-up on any
medical certificate
- In cases where a reason other than sickness is relied upon, the student must submit an affidavit
that reflects the reason for his/her absence from the test. Further evidentiary documents or
supporting affidavits from persons who may be able to give evidence regarding the
situation must also be submitted. In the event of a funeral, a copy of the death certificate of
the deceased or other substantiating evidence is required together with an explanation, in
the form of an affidavit, of the relationship between the student and the deceased. The
worn excuses of having overslept or read the timetable incorrectly or anything similar will
not be accepted.
- A student who has been granted permission to write a sick test or an extraordinary test and
who then fails to write the test will not qualify for any such test at a later stage.
- You are required to submit the documentation to the departmental administrator of
Mercantile Law (FOR TESTS) as it has to be recorded in a sick note registry. No
documentation will be accepted during lecture times. The onus rests on the student to
familiarise himself/herself with the fact whether or not he/she qualifies for a sick/aegrotat
test.
- NB: FOR ABSENCE DURING THE EXAMINATION THESE DOCUMENTS MUST BE SUBMITTED TO
FACULTY ADMINISTRATION AND NOT THE DEPARTMENT OF MERCANTILE LAW!
- NB: It is in the discretion of the subject head (course leader) to decide that any sick tests,
examination or special tests may take the format of an ORAL EXAMINATION.

3.6 Course plan


It is expected of all students to behave ethically and treat others with respect and dignity (this includes
lecturers and other staff members!). Take responsibility for your own studies and remember that you will
be accountable towards others as well. Have integrity and attempt to solve problems successfully. This
is an opportunity to develop your communication and inter-personal skills which you will need for the
completion of your studies and beyond. You must be able to participate in class discussions and critically
assess and conceptualise concepts to apply to a factual scenario or set of facts. You will be expected to

© 2020 University of Pretoria 13


engage with different mediums and methods of learning. This includes traditional methods as well as e-
learning methods such as ClickUP, narrated PowerPoints, and online assessments.

Quality instruction requires students to come to classes prepared, as this enables teaching to build
actively on a common prior knowledge. Below you will find a basic schedule to help you to prepare for
each contact session. Please note that the schedule may change from time to time and you should consult
ClickUP regularly for updates on any amendments to the schedule.

Preparation for
class Homework,
Contact
Week Unit / Theme Chapter / Activity classwork, or
session date
/ Article / assignments
Website

3 Feb – 7 South African Legal System and its Textbook:


1
Feb History Chapter 1

10 Feb – 14
Creation of Legal Rules and Textbook: Tutorial Questions
2 Feb
Administration of Justice Chapter 2 on ClickUP

17 Feb – 21 Textbook:
3 Introduction to the Law of Contract Online Test 1
Feb Chapter 3

Textbook:
24 Feb – 28
4 Consensus Chapter 4
Feb
(4.01 – 4.61)

Textbook:
2 March – 6
5 Consensus Chapter 4 Online Test 2
March
(4.70 – 4.122)

9 March –
6 B Comm Test Week
13 March

16 March – Tutorial Questions


7 Tutorial
20 March on ClickUP

23 March –
8 Recess
31 March

© 2020 University of Pretoria 14


1 April – 3 Textbook: Revision for
9 Contractual Capacity
April Chapter 5 Semester Test

Semester Test
7 April
6 April – 9 Legality, Possibility of Performance Textbook:
10
April and Certainty Chapter 6
Tutorial Questions
on ClickUP
Formalities
14 April – Textbook:
11 Parties to the Contract, conditions Online Test 3
17 April Chapter 7 & 8
and Related Concepts, Particular
Terms and Interpretation of

Textbook:
20 April – Breach of contract and Termination Tutorial Questions
12 Chapter 9
24 April of Contractual Relationship on ClickUP
(9.01 – 9.25)

Textbook:
28 April – Breach of contract and Termination
13 Chapter 9 Online Test 4
29 April of Contractual Relationship
(9.26 – 9.70)

4 May – 8
14 B Comm Test Week
May

Tutorial Questions
Textbook:
11 May – Breach of Contract and Termination on ClickUP
15 Chapter 9
15 May of Contractual Relationship
(9.71 – 9.154)
Online Test 5

18 May –
16 Revision for Exam
22 May

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PART B: COURSE CONTENT
Study Units and Learning Outcomes

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UNIT: Chapter 1: History of the South African Law and the South African Legal System

Overview : In this unit the history and transformation of the South African Law will be
discussed

THEME 1 : HISTORY OF THE SOUTH AFRICAN LAW

Commercial Law Nagel et al paras 1.01 – 1.14

After this section of the work has been studied, you must be able to:

 Discuss the history and development of Roman law;


 Discuss the development of South African law;
 Discuss the influence of English law on the development of South African law.

THEME 2 : THE SOUTH AFRICAN LEGAL SYSTEM

Commercial Law Nagel et al paras 1.15 – 1.33

After this section of the work has been studied, you must be able to:

 Distinguish between an obligatory and a real agreement and apply your knowledge to a legal
problem;
 Name the sources of legal obligations;
 Distinguish between peremptory and regulatory rules of law and apply your knowledge to a
legal problem;
 Define a subjective right;
 Name the four categories of subjective rights and furnish one example of each.

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UNIT: Chapter 2: Creation of Legal Rules and the administration of justice

Overview : In this unit you are introduced to the sources of South African Law as well
as the division and functions of the South African courts with specific
reference to the law of precedent

THEME 1 : CUSTOM AS A SOURCE OF LAW

Commercial Law Nagel et al paras 2.03 – 2.06

After this section of the work has been studied, you must be able to:

 Name the requirements which have to be met before a custom will be recognised as a legal rule
or law and to apply the requirements to a legal problem;
 Distinguish between the creation of legal rules and the abrogation of such rules through disuse or
custom to the contrary.

THEME 2 : LEGISLATION AS A SOURCE OF LAW

Commercial Law Nagel et al paras 2.07 – 2.16

After this section of the work has been studied, you must be able to:

 Name the different legislators in the country;


 Discuss what Parliament consists of and discuss the functions of Parliament;
 Explain how legislation is tested against the Constitution;
 Discuss the legislative authority of the provincial legislators;
 Name the different subordinate legislators;
 Name the requirements which have to be met before subordinate legislation is valid.

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THEME 3 : COURT DECISIONS AS A SOURCE OF LAW, THE LEGAL PROFESSION
AND CIVIL AND CRIMINAL MATTERS

Commercial Law Nagel et al paras 2.17 – 2.49

After this section of the work has been studied, you must be able to:

 Discuss the hierarchy of the courts in South Africa;


 Discuss the jurisdiction of courts;
 Name and understand the other special courts;
 Describe the appeal procedure of the different courts;
 Discuss how courts can create new law;
 Describe what is meant by ‘precedent’ and discuss the doctrine of precedent currently in force in
South Africa;
 Distinguish between attorneys and advocates;
 Distinguish between criminal and civil matters.

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UNIT: Chapter 3: Obligations

Overview : In this unit you are exposed to the different legal obligations that are
recognised by South African law. Although this course focuses on the
contractual aspects of the law of obligations, you are briefly exposed to
the delict as a source of obligations.

THEME 1 : INTRODUCTION TO AND BRIEF HISTORICAL OVERVIEW OF THE


SOUTH AFRICAN LAW OF CONTRACT

Commercial Law Nagel et al paras 3.01 – 3.18

After this section of the work has been studied, you must be able to:

 Shortly describe the nature and development of the legal obligation;


 Discuss the resulting rights and duties created by a legal obligation and apply it to a legal
problem;
 Define the concept legal obligation.

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THEME 2 : THE DELICT: GENERAL

Commercial Law Nagel et al paras 3.19 – 3.23

After this section of the work has been studied, you must be able to:

 Define ‘delict’ and apply the definition to a legal problem;


 Clearly explain the difference between a delict and a crime and apply to a legal problem;
 Name the elements of a delict and apply these elements to a legal problem.

THEME 3 : THE DELICT: CONDUCT

Commercial Law Nagel et al paras 3.24 – 3.25

After this section of the work has been studied, you must be able to:

 Describe and define an act and to identify it in a problem question;


 Distinguish between positive (commissio) and negative conduct (omissio) and identify it in a legal
problem;
 Discuss the actionable omissions which lead to delictual liability and furnish examples of each.

THEME 4 : THE DELICT: WRONGFULNESS

Commercial Law Nagel et al paras 3.26 – 3.50

After this section of the work has been studied, you must be able to:

 Define the term wrongfulness specifically regarding the infringement on subjective rights;
 Name the different grounds of justification and distinguish these grounds in a legal problem with
reference to the requirements for each.

THEME 5 : THE DELICT: FAULT

Commercial Law Nagel et al paras 3.51 – 3.63

After this section of the work has been studied, you must be able to:

 Name the two different forms of fault;


 Describe the prerequisite of accountability and apply it to a legal problem;
 Distinguish between two forms of intent (dolus directus and dolus indirectus) apply your
knowledge to a legal problem;
 Define the term negligence;
 Describe and apply the test for negligence.

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THEME 6 : THE DELICT: CAUSATION

Commercial Law Nagel et al paras 3.64 – 3.69

After this section of the work has been studied, you must be able to:

 Describe what is meant by the term causation;


 Distinguish between factual and legal causation and apply it to a legal problem;
 Understand and explain the test for causation and apply to a legal problem;
 Explain in which ways causational liability can be limited;
 Explain what is meant by a novus actus interveniens.

THEME 7 : THE DELICT: PATRIMONIAL LOSS AND THE IMPAIRMENT OF


PERSONALITY

Commercial Law Nagel et al paras 3.70 – 3.80

After this section of the work has been studied, you must be able to:

 Define the terms patrimonial loss and non-patrimonial loss (impairment of personality);
 Discuss the difference between the terms patrimonial loss and non-patrimonial loss (impairment
of personality);
 Describe how the abovementioned damages are quantified and apply your knowledge to a
legal problem.

THEME 8 : DELICTUAL REMEDIES

Commercial Law Nagel et al paras 3.81 – 3.88

After this section of the work has been studied, you must be able to:

 Discuss the actio legis aquiliae, actio iniuriarum and action for pain and suffering as delictual
remedies and apply to a legal problem;
 Define an interdict and name its requirements;
 Explain the effect of prescription on a delictual claim.

THEME 9 : THE CONTRACT

Commercial Law Nagel et al paras 3.89 – 3.109

After this section of the work has been studied, you must be able to:

 Give the common law definition of a contract (3.89);

© 2020 University of Pretoria 20


 Discuss the definition of “transaction” and “agreement” ito sec 1 of the CPA (Consumer Protection
Act);
 Name the five requirements for a valid contract;
 Define the following basic concepts and identify in a multiple choice question:
(i) the parties to a contract;
(ii) the performance;
(iii) unilateral contracts;
(iv) reciprocal contracts;
(v) nominate contracts;
(vi) essentialia;
(vii) naturalia;
(viii) incidentalia;
 Distinguish between contracts which are null and void, contracts which are voidable and contracts
which are unenforceable and apply your knowledge to a legal problem.

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UNIT: Chapter 4: Consensus

Overview : In this unit consensus as the most important element for the conclusion of
a valid contract is discussed with reference to the different types of
consensus as well as the manner in which consensus may be obtained.
The legal principles in terms of the Consumer Protection Act 68 of 2008
(hereafter CPA) and the common law are explained.

THEME 1 : ESTABLISHMENT OF CONSENSUS

Commercial Law Nagel et al paras 4.01 – 4.69

After this section of the work has been studied, you must be able to:

 explain what the three requirements for the existence of consensus are;
 understand when the CPA is applicable to a set of facts;
 apply both common law and statutory principles to a set of facts;
 define an offer, state the requirements for an offer and apply your knowledge to a legal
problem, with specific reference to the effects of a valid offer;
 shortly state the ways in which an offer may be terminated;
 define acceptance, state the requirements for an acceptance and apply your knowledge to a
legal problem, with specific reference to the effects of a valid acceptance;
 explain why the time and place of the conclusion of a contract is important;
 discuss the different theories that may be applied in order to determine whether a contract came
into existence and apply it to a legal problem;
 identify the following types of offers and apply it to legal problems:
(i) auction with reserve;
(ii) auction without reserve;

© 2020 University of Pretoria 21


 discuss the difference between options and preferential rights.

THEME 2 : CONTENTS OF THE CONTRACT

Commercial Law Nagel et al paras 4.70 – 4.82

After this section of the work has been studied, you must be able to:

 Distinguish between real, assumed and ex lege (through operation of law) consensus.
 Distinguish between essentialia and incidentalia by defining the two terms and discussing the
differences;
 Name the requirements which have to be met before a court will include a term in a contract;
 Discuss the nature of and problems pertaining to ticket contracts;
 Describe the procedure which has to be followed to determine whether a party is bound to a
ticket contract or not and apply it to a legal problem;
 Explain how consensus is reached through operation of law by specifically referring to:
(i) common law naturalia;
(ii) legislation;
(iii) trade usages (with specific reference to the requirements which such a usage has to
comply with);
 Apply both common law and statutory principles to a set of facts.

THEME 3 : FACTORS WHICH INFLUENCE CONSENSUS

Commercial Law Nagel et al paras 4.83 – 4.99 and 4.100 – 4.122

After this section of the work has been studied, you must be able to:

 distinguish between a contract which is null and void, and a voidable contract;
 define what is meant by error;
 distinguish between error in motive and error as to the contents or existence of the contract;
 identify the different forms of error;
 define the term misrepresentation;
 distinguish the different ways in which misrepresentation may take place;
 explain what is meant by duress;
 discuss the requirements for and consequences of duress;
 define what is meant with undue influence;
 discuss the requirements for and the consequences of undue influence;
 identify the factors influencing consensus in a problem question;
 discuss the influence of the CPA (paras 4.117-4.121);
 explain commercial bribery.

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UNIT: Chapter 5: Contractual Capacity

Overview : In this unit contractual capacity as a requirement for the conclusion of a


valid contract is discussed with reference to persons with no contractual
capacity, limited contractual capacity and full contractual capacity, as well
as the assistance required for limited contractual capacity and
consequences. The legal principles in terms of the Consumer Protection
Act 68 of 2008 (hereafter CPA) and the common law are explained.

THEME 1 : INTRODUCTION TO CONTRACTUAL CAPACITY

Commercial Law Nagel et al paras 5.01 – 5.03

After this section of the work has been studied, you must be able to:

 Explain what is meant with the term contractual capacity;


 Distinguish between contractual capacity and legal capacity and apply your knowledge to a
legal problem;
 Distinguish between natural persons and legal persons;
 Discuss the contractual capacity of legal persons.

THEME 2 : PERSONS WITHOUT ANY CONTRACTUAL CAPACITY

Commercial Law Nagel et al paras 5.04 – 5.12

After this section of the work has been studied, you must be able to:

 distinguish between the three categories of persons without any contractual capacity;
 discuss the legal position of persons under the age of seven years;
 discuss the legal position of mental health care users;
 discuss the influence of the CPA on mental health care users;
 discuss the legal position of persons under a state of automatism, the influence of strong liquor or
alcohol.

THEME 3 : PERSONS WITH LIMITED CONTRACTUAL CAPACITY: MINORS

Commercial Law Nagel et al paras 5.13 – 5.21

After this section of the work has been studied, you must be able to:

 name the different categories of persons with limited contractual capacity;

© 2020 University of Pretoria 23


 indicate who will be regarded as minors;
 indicate the ways in which a minor may become a major;
 identify and discuss the contracts the contacts which will be binding upon a minor;
 describe the term restitutio in integrum and to indicate when restitution will take place and apply
it to a legal problem;
 identify and discuss the contracts to which a minor will not be held;
 explain what is meant by an emancipated minor is and to discuss the legal consequences of
emancipation for a minor.

THEME 4 : PERSONS WITH LIMITED CONTRACTUAL CAPACITY: MARRIED


PERSONS

Commercial Law Nagel et al paras 5.22, 5.30 – 5.40

After this section of the work has been studied, you must be able to:

 discuss the two ways in which a marriage may be concluded;


 identify when the accrual system will be applied;
 to determine the accrual;
 know how to alter an existing matrimonial property dispensation.

THEME 5 : PERSONS WITH LIMITED CONTRACTUAL CAPACITY: OTHER


PERSONS

Commercial Law Nagel et al paras 5.41 – 5.51

After this section of the work has been studied, you must be able to:

 Very briefly discuss the legal position of the prodigal, insolvent and persons under curatorship in
South African law;
 give the definition of a legal or juristic person;
 give examples of juristic persons;
 name the business entities not regarded as juristic persons;
 give the definition of “juristic persons” in terms of the CPA;
 discuss the role of natural persons acting on behalf of juristic persons.

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UNIT: Chapter 6: Legality and Physical Possibility and Certainty

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Overview : In this unit legality, physical possibility and certainty as elements for the
conclusion of a valid contract is discussed. The legal principles in terms of
the Consumer Protection Act 68 of 2008 (hereafter CPA) and the common
law are explained.

THEME 1 : LEGALITY

Commercial Law Nagel et al paras 6.01 – 6.42

After this section of the work has been studied, you must be able to:

 understand what is meant with the requirement of legality;


 furnish examples of contracts contrary to statutory provisions, discuss the legal consequences of
such contracts and apply your knowledge to a legal problem;
 furnish examples of contracts contrary to common law, discuss the legal consequences of such
contracts and apply your knowledge to a legal problem;
 furnish examples of contracts contrary to good morals, discuss the legal consequences of such
contracts and apply your knowledge to a legal problem;
 furnish examples of contracts contrary to public interest, discuss the legal consequences of such
contracts and apply your knowledge to a legal problem;
 Die influence of the CPA on the common law position with reference to the relevant provisions of
the Act as discussed in paragraph 6.12;
 discuss in detail restraint of trade agreements and the validity of contracts which limit free
participation in legal and commercial life;
 discuss the decision and effect of the Magna Alloys and Research-case and apply it to a legal
problem;
 discuss the influence of section 22 of the Constitution on restraint of trade agreements;
 name the factors the court will take into account to determine whether or not a restraint of trade
provision is against public policy;
 briefly distinguish between solus contracts, wagers, lotteries and gambling and wilful misconduct;
 understand and discuss the consequences of illegal contracts and apply it to a legal problem.

THEME 2 : PHYSICAL POSSIBILITY AND CERTAINTY

Commercial Law Nagel et al paras 6.43 – 6.55

After this section of the work has been studied, you must be able to:

 describe what is meant by physical possibility;


 distinguish between the three forms of impossibility of performance, and discuss the legal
consequences of each;
 distinguish between a generic obligation and an alternative obligation;
 discuss the consequences where performance is indeed physically impossible.

© 2020 University of Pretoria 25


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UNIT: Chapter 7: Formalities

Overview : This unit focuses on formalities as an element for the conclusion of a valid
contract. Reference is made to formalities imposed by the parties
themselves as well as formalities prescribed by law. The consequences of
non-compliances with formalities is discussed. The legal principles in
terms of the Consumer Protection Act 68 of 2008 (hereafter CPA) and the
common law are explained.

THEME 1 : FORMALITIES REQUIRED BY LEGISLATION

Commercial Law Nagel et al paras 7.01 – 7.06

After this section of the work has been studied, you must be able to:

 identify between the two different forms of formal requirements;


 give the following examples where formalities are required by legislation: par 7.06
(a),(b),(d),(f),(g),(h) and (j).

THEME 2 : FORMALITIES REQUIRED BY THE PARTIES

Commercial Law Nagel et al paras 7.07 – 7.09

After this section of the work has been studied, you must be able to:

 distinguish between the two intentions which parties may have when they prescribe certain
formalities for any contracts which they might conclude;
 discuss the consequences where any of the formalities as mentioned in (a) are not complied with.

THEME 3 : VARIATION OF FORMAL CONTRACTS AND CONTENTS OF WRITTEN


CONTRACTS

Commercial Law Nagel et al paras 7.10 – 7.17

After this section of the work has been studied, you must be able to:

 discuss the two instances where variation of contracts may occur;


 discuss the contents and application of the rule with regards to intrinsic evidence (the parol
evidence-rule);
 explain how a contract may be rectified.

© 2020 University of Pretoria 26


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UNIT: Chapter 8: Parties to the contract, conditions and related concepts, particular terms

Overview : In this unit various aspects relating to the parties to a contract and contents
of contracts are discussed. The legal principles in terms of the Consumer
Protection Act 68 of 2008 (hereafter CPA) and the common law are
explained.

THEME 1 : PARTIES TO THE CONTRACT

Commercial Law Nagel et al paras 8.01 – 8.40

After this section of the work has been studied, you must be able to:

 discuss the legal concept of agency;


 define cession and apply your knowledge to a legal problem;
 define delegation and apply your knowledge to a legal problem;
 define assignment and apply your knowledge to a legal problem;
 discuss the divisibility of performance;
 distinguish between joint liability and entitlement and joint and several liability and entitlement.

THEME 2 : CONDITIONS AND RELATED CONCEPTS

Commercial Law Nagel et al paras 8.41 – 8.58

After this section of the work has been studied, you must be able to:

 distinguish between contractual conditions and terms and apply to a legal problem;
 describe the difference between a condition and a time clause and apply to a legal problem;
 distinguish between a suspensive and a resolutive condition and to furnish an example of each
and apply to a legal problem;
 discuss the legal consequences if a condition is fulfilled;
 describe the operation of a time clause and to distinguish between a suspensive and a resolutive
time clause and apply your knowledge to a legal problem;
 discuss the operation of an assumption (supposition) and apply your knowledge to a legal
problem.

© 2020 University of Pretoria 27


THEME 3 : PARTICULAR TERMS AND INTERPRETATION

Commercial Law Nagel et al paras 8.59 – 8.72

After this section of the work has been studied, you should be able to explain what the following terms
entail:

 warranties;
 penalty clauses;
 acceleration clauses;
 lex commissoria;
 jurisdiction;
 arbitration;
 costs and
 exemption clauses.
 Interpretation of contracts

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UNIT: Chapter 9: Breach of contract and termination of contractual relationship

Overview : In this unit you will learn the different forms of breach of contract, the
remedies applicable in each instance of breach and the general ways to
terminate a contractual relationship.

THEME 1 : FORMS OF BREACH OF CONTRACT: MORA DEBITORIS

Commercial Law Nagel et al paras 9.01 – 9.13

After this section of the work has been studied, you must be able to:

 discuss what is meant with mora debitoris; and name the requirements for mora debitoris;
 distinguish between mora ex re and mora ex persona;
 discuss the consequences of mora debitoris with the sole purpose of identifying this form of breach
of contract in a legal problem and correctly advising a client.

THEME 2 : FORMS OF BREACH OF CONTRACT: MORA CREDITORIS

Commercial Law Nagel et al paras 9.14 – 9.25

After this section of the work has been studied, you must be able to:

© 2020 University of Pretoria 28


 discuss what is meant with mora creditoris and name the requirements set for mora creditoris;
 name and discuss the consequences of mora creditoris and apply your knowledge to a legal
problem.

THEME 3 : FORMS OF BREACH OF CONTRACT: POSITIVE MALPERFORMANCE

Commercial Law Nagel et al paras 9.26 – 9.30

After this section of the work has been studied, you must be able to:

 discuss what is meant by positive malperformance;


 name the requirements for positive malperformance;
 name and discuss the consequences of positive malperformance and apply your knowledge to a
legal problem.

THEME 4 : FORMS OF BREACH OF CONTRACT: REPUDIATION

Commercial Law Nagel et al paras 9.31 – 9.37

After this section of the work has been studied, you must be able to:

 Give the definition of repudiation;


 name the requirements set for repudiation;
 discuss the consequences of repudiation and apply to a legal problem.

THEME 5 : FORMS OF BREACH OF CONTRACT: RENDERING PERFORMANCE


IMPOSSIBLE

Commercial Law Nagel et al paras 9.38 – 9.44

After this section of the work has been studied, you must be able to:

 describe when performance is rendered impossible;


 name the requirements set for performance to be rendered impossible;
 distinguish the different legal consequences where the debtor renders performance impossible,
and where the creditor renders performance impossible and apply your knowledge to a legal
problem.
 distinguish between the different forms of impossibility.

THEME 6 : REMEDIES FOR BREACH OF CONTRACT: INTRODUCTION AND


FULFILLMENT OF THE CONTRACT

Commercial Law Nagel et al paras 9.45 – 9.70

After this section of the work has been studied, you must be able to:

© 2020 University of Pretoria 29


 distinguish between the remedies available by operation of law, and remedies agreed to by the
parties.
 discuss the interdict as a remedy, especially by referring to the requirements which have to be
met before an interdict will be granted;
 discuss the remedy of specific performance, specifically referring to the cases where the courts
will not grant this remedy;
 describe what the term exceptio non adimpleti contractus means and apply to a legal problem;
 define and explain what an acceleration clause is;
 discuss the purpose of an acceleration clause in a contract.

THEME 7 : REMEDIES FOR BREACH OF CONTRACT: CANCELLATION OR


RESCISSION

Commercial Law Nagel et al paras 9.71 – 9.95

After this section of the work has been studied, you must be able to:

 discuss why cancellation/rescission is deemed to be a drastic remedy;


 explain what is meant by the term “cooling-off right” and give an example;
 discuss the cancellation clause or lex commissoria with reference to the CPA;
 discuss cancellation in the event of each of the forms of breach of contract and also give the
correct remedy in each instance to the client;
 briefly discuss when and how a party may/can cancel a contract/rescind a contract;
 briefly discuss the consequences of cancellation.

THEME 8 : REMEDIES FOR BREACH OF CONTRACT: DAMAGES

Commercial Law Nagel et al paras 9.96 – 9.106

After this section of the work has been studied, you must be able to:

 discuss the purpose of damages as a remedy;


 indicate in which cases damages can be claimed;
 determine and calculate the amount of damages in a legal problem;
 explain the difference between general (direct) damage and special (indirect) damage;
 explain and understand penalty clauses.

THEME 9 : TERMINATION OF CONTRACTUAL RELATIONSHIPS

Commercial Law Nagel et al paras 9.107 – 9.156

After this section of the work has been studied, you must be able to:

 explain the general ways to terminate a contractual relationship;

© 2020 University of Pretoria 30


 discuss each of the abovementioned ways of termination very briefly;
 describe what prescription means;
 explain the difference between strong and weak prescription;
 explain the different periods for prescription and furnish an example of each;
 indicate when prescription commences, and when prescription is completed;
 indicate how prescription may be interrupted.

© 2020 University of Pretoria 31


PART C: RULES, REQUIREMENTS AND GUIDELINES
Special needs
Take note that students with disabilities and special needs (for example students who need
enlarged copies of tests or additional time) must get in contact with Mr Juan Erwee on an urgent
basis. His contact details are as follows: juan.erwee@up.ac.za; Tel 012 420 4281, Old
Chemistry Building 1-25 – Unit for Students with Special Needs (Disability Unit), Department of
Student Affairs. Also take note that students who qualify for additional time will write the
semester tests in another venue on the same date and time scheduled for the normal test.

Students must inform the course leader within the first two weeks of lectures of their special
needs.

Rules relating to perusal of formal assessment documents will be provided on ClickUP

General department-specific policies, rules, requirements and guidelines should ideally be spelt
out in a separate departmental/programme guide. In the study guide, one could simply refer
the student to these guides and ensure that the student has access to the relevant documents.
Where rules and requirements pertain to the relevant module in particular, they can be spelt
out here.

Student support
The University of Pretoria supports you in various ways free of charge. The following services
can be considered:

Academic support
Individual consultations and
Goal setting & motivation
Faculty workshops about
Adjustment to university life
student - time management
Test/Exam preparation
advisors - study methods
Stress management
Career exploration
• Think carefully before
dropping modules (after the
closing date for amendments or
FLY@UP: cancellation of modules). www.up.ac.za/fly@up
The Finish
Line is • Make responsible choices with
your time and work consistently. email: fly@up.ac.za
Yours
• Aim for a good semester mark.
Don’t rely on the examination
to pass.

For e-learning support


• Report a problem you experience to the Student Help Desk.
• Approach the assistants at the help desks (adjacent to the Student Computer
Laboratories in IT Building, NW2, CBT, etc).
• Visit the open labs in the Informatorium Building to report problems at the offices of the
Student Help Desk.
• Call 012 420 3837.
• Email studenthelp@up.ac.za

© 2020 University of Pretoria 32


Safety in the evening: Green Route
• From 18:00 till 06:00 Security Officers are available to escort you (on foot) to and from
your residence or campus anywhere east of the Hatfield campus through to the LC de
Villiers terrain.
• Departure point is at the ABSA ATM next to the Merensky Library.
• Phone the Operational Management Centre if you need a Security Officer to
accompany you from your residence to campus.

For more support services see Addendum A

© 2020 University of Pretoria 33


Addendum A: Support services
Please download a QR code reader on your cell phone. To download a QR code reader open
your mobile app store (App Store, Google Play or Windows Marketplace) and search for QR
code readers.

Student
Provides counselling and
Counselling 012 420 2333
therapeutic support to students.
Unit

Student
Promotes and assists students with 012 420 5233
Health
health and wellness. 012 420 3423
Services

Provides support for UP students


The Careers careerservices@up.ac.za
and graduates as they prepare
Office 012 420 2315
for their careers.

24-hour Operational
012 420-2310
Management Centre
Department 012 420-2760
of Security
24-hour Operational Manager
Services 083 654 0476
cell
0800 006 428
Crisis Line

Department Enquiries concerning studies, 012 420 2371/4001


of Student accommodation, food, funds, social Roosmaryn Building,
Affairs activities and personal problems. Hatfield campus

Centre for
Sexualities, Identifies and provides training of
012 420 4391
AIDS and student peer counsellors.
Gender

Ensure an integrated and inclusive


Disability Unit learning experience for students 012 420 2064
with disabilities.

Fees and http://www.up.ac.za/enquiry


012 420 3111
funding www.up.ac.za/fees-and-funding

012 420 3051


IT Helpdesk For student IT related queries studenthelp@up.ac.za

© 2020 University of Pretoria 34

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