TEST 2 Answers:

In exceptional cases, name two damages for latent defects that

may be claimed.
Ex Emptio
Voetstoots
Aedilitian

Give a definition of agency?

A person concludes a contract on behalf of another on the strength of
authority given by that person.

List three types of mistakes?

Mistake of Law
Mistake in expression
Mistake in motive
Mistake of fact

State two forms of delivery in respect of movable and immovable

property.

Movable by actual delivery or constructive delivery

Immovable registration against the title deeds by the registrar of deeds

Name two types of power of attorneys?

A special power of attorney
A general power of attorney

List two requirements for ratification of an unauthorized act.

The contractor must claim authority
The principal must be named or ascertainable
The act must not have been illegal and
The principal must have been in existence at the time of the transaction

Name two requirements for mistake of fact to prove liability for unjustified
enrichment.
The defendant must have been enriched
The plaintiff must have been impoverished
The defendant’s enrichment must have been at the expense of the plaintiff
The enrichment must have been unjustified page 133

What is the meaning of the doctrine of the undisclosed principal?

If the agent does not disclose that he is acting on behalf of a principal
(even though he enjoys authority), the principal may step forward and
claim from the third party. The third party may once he comes to know of
the principal’s existence claim from either the principal or the agent. This
is known as the doctrine of the undisclosed principal.

Discuss the characteristics of agency?

One person acts on behalf of another;

This act on behalf of the other is a juristic act;
The act is authorized;
The action results in a legal tie between two parties, one of which was not
involved in the original action. The essential characteristics of
representation is found in the authorization given to the agent by principle
Absa Bank Limited v Arif & Another

Discuss the liability of the seller for latent defects in the object sold by
him or her to a purchaser, with reference to voetstoots sales.

The seller will not be responsible for latent defects in any of the following
situations:
The seller expressly contracts out of liability: An agreement in which the
thing is subject to a voetstoots or as is clause expressly exludes the seller
from liability for any latent defect. However, it will not protect the seller
where the seller is fraudulent, that is, where he or she knows that
knowledge of the defect would cause the buyer either not to buy at all or
to insist on a lower price.

Discuss the remedies available to a buyer and a seller when the other is
in default.

Common Law remedies:

Aedilitian remedies
The aedilitian remedies are available to the buyer where there is a breach
of an implied warranty against latent defects or when a false material
statement of praise was made of the thing. A false material statement of
praise is also known as a false dictum et promissum.
Redhibitoria action: page 199 depending what student answers.
Remedies for the buyer:
Where the buyer is in default by not paying the price on the due date, the
seller may sue for payment or cancel the contract if time is of the essence.
The seller may make time of the essence by demanding payment and
simultaneously giving notice of rescission. Page 202

END