HIGHER EDUCATION PROGRAMMES

Academic Year 2021: July – December

Formative Assessment 1: Commercial Law 1 (HLWC1181)
NQF Level, Credits: 5, 8
Weighting: 50%
Assessment Type: Short & Essay Questions
Educator: Chad-Lee Bedeker
Examiner: Tamar Natalie Naidoo
Due Date: 17 September 2021
Total: 100 marks

Instructions:

 This paper consists of five (5) questions.

 It is based upon units 1-4 (chapters 1 - 5) of your prescribed textbook.
 All questions are compulsory.
 Name and briefly explain the elements of a delict
 Identify the main role players in the legal profession
 Differentiate between the factors that have an influence on, including their effect
on a contract
 Explain the requirements for a valid acceptance;
 Differentiate between valid, void, voidable and unenforceable contracts;
 Describe the law of obligations as a branch of the objective law
 Briefly explain the meaning and validity of ticket contract

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Question 1 (27 marks)

Read the scenario, below, carefully before answering the questions which
follow:

In Coatesville, the sidewalks are in terrible condition due to the heavy rains this year.
Several holes have emerged in the sidewalk. The Municipality had been alerted by
the community to the condition of the sidewalk but have failed to talk any action. On
the 21st of June 2021, Bella is walking home from College when steps into a hole
and falls. Bella is seriously injured and has incurred many medical bills. Bella wants
to sue the Municipality according to the law of delict.

Required

1.1 Advise Bella on elements of delict that needs to be satisfied before someone can
be successful in his/her claim. (15 marks)

1.2 Fill in the missing words in the blank spaces in the table below. (12 marks)
Function
Name
Acts on behalf of the state in criminal trials in lower courts.
(a)
(b)
Sheriff

(c) The public official charged with the administration of

estates. As such, he plays an important role in
sequestration proceedings and deaths (i.e. the distribution
of a deceased person’s estate).

(d) The person who makes a decision (i.e. passes judgement)

at a court or another forum, such as a tribunal.
Notary public (e)
Clerk of the Court (f)

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Question 2 (12 marks)

Sheldon sells his apartment to Crystal for R1000 000. Sheldon intentionally fails to tell
Crystal that the geyser and electrical wiring are not working properly when the contract
is concluded. Instead, he informs her that everything in the apartment is in working
order. Crystal would not have purchased the apartment had she known about the
faulty geyser and electrical wiring.

Required:

2.1 Explain what Sheldon is guilty of. Substantiate your answer. (3 marks)

2.2. Identify the remedies available to Crystal in terms of the law. (3 marks)

2.3 Identify the requirements that must be proved by the innocent party in order to
successfully rely on misrepresentation as to a defence. (6 marks)

Question 3 (28 marks)

Once an offer is made, it is up to the other party to accept it or not.

3.1 Explain the requirements of a valid acceptance. (12 marks)

3.2 Samson is busy walking from the car park in Canal Walk, when he is approached
by two men, Tom and Jerry, who are carrying guns. They tell Samson that if he does
not sell his Golf GTI to them for R30 000 they will hunt him down and murder him.
Samson agrees and sells the car to Tom and Jerry.
Required:
Advise Samson on whether he can have the contract set aside on the grounds of
duress. (16 marks)

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Question 4 (15 marks)
Consider the following examples and identify the form of dolus (intent) involved.
Furthermore, you are required to elaborate on the definition of each form/s of dolus
(intent) involved in the example provided.

a) Jason and Kyle were racing illegally and both were under the influence of drugs.
Consequently, they crashed their vehicles into a group of schoolboys, causing the
death of two boys. Kyle and Jason insist that they had no intention to kill the school
boys however, the fact that they used drugs and then raced their cars where there
were many bystanders, meant that they could have foreseen that their actions could
result in the death of someone. (5 marks)

b) A religious extremist (Mika) boards a plane and is strapped with explosives. He then
detonates the explosives that are sufficient enough to kill all 300 passengers on the
plane. (4 marks)

c) Cheslyn attempted to defraud his insurance in 2020. He set fire to his stock inside
a building with a view to claiming fraudulently for its replacement value from his
insurance company. He was well aware that by burning his stock, he would also be
burning the building down. (6 marks)

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Question 5 (18 marks)

Read the scenario, below, carefully before answering the questions which
follows:

Ethel has started a new job at UCT as a registrar. Her car has gone in for a service
so Ethel decides to use a train to travel to work, as Ethel is handed her ticket, she
proceeds to the station and puts her ticket in her purse. As soon as the train leaves
the station, Ethel’s seat becomes unhinged and she is thrown on the floor, breaking
her hand. Ethel, attempts to sue the train company and to her disbelief, there is an
exemption clause on the back of her train ticket, which excludes the train company’s
liability for any personal injury suffered by its passengers.

Required:

5.1 With reference to South African common law, discuss whether Ethel is bound by
the ticket contract with the train company. (10 marks)

5.2 Discuss any relevant legislative provisions that (may) have an influence on so-
called ticket contracts. (8 marks)

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