ASSIGNMENT

SEMESTER 2023 02
MODULE LAW OF CONTRACT
MODULE CODE LCN301
DUE DATE 22 SEPTEMBER 2023

Page 1 of Assignment
 ASSIGNMENT – 2023 SECOND SEMESTER
LCN301
LAW OF CONTRACT

0B ELECTRONIC SUBMISSION INSTRUCTIONS

1B Introduction
This assignment is compulsory and must be submitted through CANVAS, inside the corresponding
Module Class Course on or before 22 September 2023 by 24:00.

PLEASE ENSURE THAT THE ANSWER BOOK THAT YOU SUBMIT IS IN MS WORD OR
PDF FORMAT. NO SCANNED DOCUMENT WILL BE MARKED.

Your assignment answer book must include the following sections:

COVER PAGE:
Please include the following information on the first page of the assignment answer book: Name,
Surname, Student Number and Module Code.
BODY:
The assignment answers must be typed in MS Word format and saved as a PDF document (File
> Save As > Save as Type: PDF). Submit the final PDF document to CANVAS.

LIST OF REFERENCES:
Refer to the STADIO Referencing guide HERE for guidance.
IMPORTANT: Ensure that you submit this assignment answer book on or before the due date and
time.
Submit this assignment answer book by logging in to CANVAS with your MySTADIO account.
Please use the same username and password credentials you have used to log in to MySTADIO.

Submission Instructional Video

Submitting an assignment to CANVAS may be a new concept for some students. Watch the
tutorial video of the submission process by clicking on the link shown below.

Submission Guide

Click to Watch

Page 2 of Assignment
 ASSIGNMENT – 2023 SECOND SEMESTER
LCN301
LAW OF CONTRACT

Completing Your Assignment

A specific course inside of CANVAS for each of your modules has been created for you to submit
your Assignment to.
Step 1: Complete your assignment answer book.
Step 2: Save your file with the following naming convention:
[STUDENTNUMBER] [MODULECODE] [SURNAME].pdf
E.g. 21111234 BCU101 Surname.pdf
Step 3: Log in to CANVAS using your MySTADIO details:
(Username: studentnumber@stadioDL.ac.za and Password: ID number)
Step 4: Select the desired module from the dashboard.
Step 5: Submit your assignment before the end of the due date.

Logging in to CANVAS
We have made logging in to CANVAS easier for students by using their MySTADIO account to
access the system without the need to create another password and other login requirements. You
can sign in directly by using the button link below (remember to use your MySTADIO credentials:
studentnumber@stadioDL.ac.za and ID number as the password) or by going to
https://stadio.instructure.com/login/canvas:

IMPORTANT NOTES
---THE PROCESS DETAILED ABOVE IS THE SAME ON A PERSONAL COMPUTER
AND MOBILE DEVICE. YOU WILL, HOWEVER, NEED TO ENSURE THAT YOU HAVE
SAVED YOUR COMPLETED ASSIGNMENT ON THE MOBILE DEVICE AND HAVE
DOWNLOADED THE CANVAS STUDENT APP BEFORE ATTEMPTING TO SUBMIT.
---
YOU DO NOT REQUIRE A CANVAS CLASS ID AND ENROLMENT KEY TO ACCESS
YOUR REGISTERED MODULE CLASS, AS YOU HAVE BEEN ALLOCATED TO THE
CLASS BASED ON YOUR REGISTRATION. IF YOU DO NOT SEE YOUR MODULE
CLASS APPEAR, PLEASE CONTACT THE OFFICE FOR ASSISTANCE.
---
IF YOU EXPERIENCE ANY DIFFICULTIES DURING THE SUBMISSION PROCESS –
AFTER READING THROUGH THE GUIDE AND ATTEMPTING THE PRESCRIBED
STEPS – PLEASE DO NOT HESITATE TO CONTACT THE OFFICE FOR ASSISTANCE.

Page 3 of Assignment
 ASSIGNMENT – 2023 SECOND SEMESTER
LCN301
LAW OF CONTRACT

Important notice:
No answer to a question or a sub-question may exceed two (2) pages. The reason for this is
that you must be able to extract the salient points on the topic from your textbook and other
sources and answer questions straight to the point. It will show your lecturer that you have
studied the topics and developed good insight and not merely repeating what is contained in
the textbook. No portion of your submission that exceeds the limit of two (2) pages will be
marked.

Question 1 [10]
BASIC FACTS FOR QUESTIONS 1, 2 AND 3
Mr A and Mr B are movie producers who want to make a movie in South Africa. The movie is
set in 1965 and they will need actors and props for the movie. Mr A needs a 1965 vintage
Aston Martin car for the movie. He finds a 1965 Aston Martin that will be perfect for the
movie. It is the only one left in the world and due to its uniqueness and great value, it must
be stored in a vault in England. He signs a contract with the owner of the vehicle Mr X on 1
May 2023. They agree that Mr A will pay R500 000 for the use of the vehicle and that he will
pay all the import costs and taxes to get the vehicle to South Africa. They agree that the
vehicle must be delivered to the business premises of Mr A on 15 May 2023. i) Describe
which requirement for a valid contract is not present in each of the following situations. ii)
Identify the specific form of the requirement that occurs and iii) describe the effect of each of
the following on the contract of lease of the vehicle:
1.1 The vehicle is stolen from the owner, Mr X, by a third party on 10 May 2023, before it
is exported to South Africa. Mr X, as the owner, took all reasonable precautions to
prevent damage or theft to the vehicle and could not have prevented the theft. (4)
1.2 The vehicle was destroyed due to a fire that broke out in the vault in England on 25
April 2023. The fire was caused by a lightning strike and no one was to blame. Both
Mr A and Mr X were unaware of the loss when they signed the contract of lease. (2)
1.3 Mr X collects the vehicle from the vault on 5 May 2023 to have it shipped to South
Africa. He decides to take one last ride in the vehicle. His license had expired and he
cannot see very well and the roads were very slippery and wet. Mr X takes the
chance and drives away at high speed. He loses control of the vehicle and crashes.
The vehicle is a total wreck. (4)

Question 2 [10]
Keeping the basic facts of Question (1) in mind, suppose for this question there exists a
statute in South Africa that "prohibits the purchase, leasing or import of vintage vehicles of
this nature" and makes the contravention of this statute a crime punishable with a fine and/or
imprisonment. Mr A has already deposited the rent of R500 000 into the bank account of Mr
X on 10 May 2023.
2.1 What is the effect of the statute on the lease contract? Briefly explain your answer.
(2)
2.2 Advise Mr A whether he can claim delivery of the vehicle from Mr X, the owner
because he already paid the lease amount in full. Substantiate your answer. (4)
2.3 Suppose now, for this question, that both Mr A and Mr X knew of the statutory
prohibition of the lease and import of the vehicle when they concluded the lease
contract. Mr A really wants the vehicle for his movie and decides to go ahead with the
transaction, irrespective of the statute. However, on 14 May 2023, Mr X decides that

Page 4 of Assignment
 ASSIGNMENT – 2023 SECOND SEMESTER
LCN301
LAW OF CONTRACT

it is too risky and decides that he would rather not continue with the transaction. He
refuses to deliver the vehicle and he also refuses to return Mr A's payment. Advise Mr
A on the possibility and viability of claiming his payment back from Mr X. Provide
reasons for your answer (4)

Question 3 [5]
Suppose, for this question, that the producers of the movie Mr A and Mr B have a contract
with each other on their respective rights and duties in the production of the movie. The
contract contains a restraint of trade clause. The restraint states (a) that neither Mr A nor Mr
B may make another movie during their lifetimes that has an African theme; and (b) that they
may never return to South Africa once the movie has been released in England.
3.1 Name the legal principles that could be in conflict with one another in this scenario
and what would you use to determine which principle enjoys precedence? (3)
3.2 Mr A wants to contest the restraint clause (b) regarding never returning to South
Africa once the movie is released in England. Advise Mr A what the courts require of
him to enable him to avoid only this part of the restraint. (2)

Question 4 [15]
As a general rule, no formalities are required for the formation of a valid contract, provided all
the other requirements for validity are met. Write an essay regarding the two exceptions to
this general rule. In your answer refer to relevant legislation.

Question 5 [10]
X and Y entered into a written lease contract for a flat whereby X must pay Y R3 500 lease
per month. Their written contract contained a non-variation clause, but Y has verbally
allowed X to pay only R1 500 for the last three months. Y now, however, wants to claim the
full R3 500 from X for the previous three months. Define and discuss the relevant principle
and refer to applicable case law. In your answer also indicate whether or not the oral
variation of the contract for X only to pay R1 500 per month is valid and whether Y will be
able to claim the full R3 500 per month for the previous three months from Y.

Question 6 [20]
Sipho Shabalala and Fine Cars (Pty) Ltd, represented by Honest Khumalo, conclude a
contract of sale whereby Sipho Shabalala buys a VW Golf GTI from Fine Cars (Pty) Ltd for
R 1 000 000. The car is to be delivered on 1 July 2023 at the home of Sipho Shabalala. A
deposit of R100 000 must be paid into the bank account of Fine Cars (Pty) Ltd by 30 June
2023 and the remainder of the purchase price is to be paid in 10 (ten) equal monthly
instalments, commencing on 1 August 2023. Fine Cars (Pty) Ltd will do the registration of the
vehicle in the name of Sipho Shabalala. Sipho Shabalala must take out insurance on the
vehicle before the vehicle can be delivered to him.
Draft the following clauses for the contract, clearly marked in the sequence given below. (DO
NOT ADD OTHER CLAUSES). You may add any additional information that you think is
necessary to draft the clauses.
6.1. A proper description of the parties. (4)
6.2. A clause on the required essentialia for this agreement. (6)

Page 5 of Assignment
 ASSIGNMENT – 2023 SECOND SEMESTER
LCN301
LAW OF CONTRACT

6.3. A penalty clause (2)

6.4. A breach of contract clause (4)
6.5. A non-variation clause (2)
6.6 An entire agreement clause (2)

Question 7 [15]
You obtained your law degree and your first task as an Article Clerk is to write an article for
the South African Law Journal on Legal Capacity and Contractual Capacity. Your answer
must be in an essay format.

Question 8 [15]
Mini Research Assignment
A law student needs to be able to do research and independently debate topics and draw
well-considered conclusions based on legal principles and supportive documents or case
law. This research assignment will challenge you to move outside your comfort zone of only
consulting your Study Guide and textbook. It will allow you to grow academically and
capacitate you to be ready for the work environment.
NOTE: For this question you need to make use of sources on the internet, such as EBSCO
Host, SABINET, HeinOnline, etc. Sufficient sources are available under the Library function
on your CANVAS page.
You must provide the web link to the article and other sources you are referring to.
(Remember the STADIO LAW referencing method.) You will obtain a mark of 0% for an
answer which you simply copied and pasted as your own work. (Be mindful of the serious
matter of plagiarism.) Also, do not simply add an article as your answer. You may under no
circumstances make use of Wikipedia or ChatGPT or other AI platforms.
Your answer may not exceed two (2) typed pages. Any pages more than two (2) pages will
not be marked and you may therefore lose marks. Remember that a good answer should (1)
identify the subject matter/issue/topic, (2) define the principle/rule/law, (3) set out
elements/requirements of the principles and/or defences, (4) refer to applicable case law or
authoritative writers, (5) refer to the applicability of the facts in question to the case and (6)
include a well-considered conclusion. The general principle of an introduction, a body and a
conclusion are also applicable.
INSTRUCTION: Identify a topic in the field of the Law of Contract that you would like to do
research on and critically discuss/debate the topic. (Use the Outcomes in your Study Guide
as a guideline to identify possible topics.)

ASSIGNMENT TOTAL: [100]

Page 6 of Assignment