Dudu purchases a bed from Lala Beds (Pty) Ltd for R4000. After the transaction when Dudu requests a written record of the transaction, the manager refuses. What protection does the Consumer Protection Act 68 of 2008, provide Dudu in this situation?
Credit agreements are normally characterized by unequal bargaining power between credit providers and consumers. This holds the potential for exploitation and abuse. Do you think that the current protections in terms of specific formalities under the National Credit Act 34 of 2005, sufficiently protects consumers against scrupulous credit providers, such as for example – ‘loan-sharks’? Briefly motivate your answer.
4
whose responsibility is it to put a document under a seal
If I make a gratuitous promise to someone and they put a seal on my promise, is that promise considered as a promise under a seal even though I did not put the seal on the document?
2
contractlaw commericla la
QUESTION 5
Van der Merwe, a Karoo farmer, is approached by Joos, who says that his son, Slyke, has ‘X-ray eyes’ and can ‘see water underground, sometimes as far down as 100 metres’. Joos offers to have his son look for water on Van der Merwe’s farm for a fee of R20 000. Van der Merwe is impressed with the son’s alleged supernatural abilities, and he decides to accept Joos’ offer. Slyke’s divining efforts are unsuccessful and Van der Merwe reluctantly gives Joos a cheque for the agreed contract price. Later that day, a police sergeant tells Van der Merwe to be ‘on the look-out for a pair of tricksters, Joos and Slyke’ who are defrauding people by pretending to be water diviners. Van der Merwe realizes that he is one of the victims and wants to stop payment on the cheque. Advise Van der Merwe on his chances of success in setting aside the contract.
(15 marks)
1
PROBLEMS WITH THE FORMATION OF A CONTRACT
TUTORIAL 2
Zanele, who just turned 18 years old, landed her first job as an intern at Deloitte & Touche. Since her high school days she always wanted a leather jacket, and she promised herself that she would buy one with her first salary payment. In the week before pay day, she started scouting for jackets. She went into a shop called Hides-R-Us where they sell leather goods such as handbags, shoes and jackets. The store advertised in the window that they specialise in leather goods. Zanele relished in the smell of leather in the shop. During her lunch break on pay day, she went back to Hides-R-Us, excitedly telling the sales lady, Maude, that she wanted to buy her first leather jacket. Maude smiled and said: “Go and have a look on that rail – our best leather jackets are hanging there.” Zanele chose a beautiful brown jacket which was surprisingly not as expensive as she thought it would be and handed it to Maude together with her credit card, saying: “I will never forget this day! I have realised my dream of owning a real genuine leather jacket.” Maude accepted payment and handed Zanele the jacket in a shopping bag. That evening Zanele, dressed in her new leather jacket, went out clubbing with friends. She gushed about her leather jacket, but disappointment soon took over when one of her friends noticed that the jacket was actually made from synthetic leather. Zanele is livid especially as she noticed a sign in the shop indicating “No returns”.
2.1 Advise Zanele fully on her legal position in canceling the contract of sale with Hides-R-Us. Refer to relevant sources of law. (10 marks)
2.2 For purposes of this question, assume that Zanele was able to cancel the contract. Briefly outline what steps must be taken by Zanele and Hides-R-Us as a consequence of being able to cancel the contract. (2 marks)
3
PROBLEMS WITH THE FORMATION OF A CONTRACT
QUESTION 5
Van der Merwe, a Karoo farmer, is approached by Joos, who says that his son, Slyke, has ‘X-ray eyes’ and can ‘see water underground, sometimes as far down as 100 metres’. Joos offers to have his son look for water on Van der Merwe’s farm for a fee of R20 000. Van der Merwe is impressed with the son’s alleged supernatural abilities, and he decides to accept Joos’ offer. Slyke’s divining efforts are unsuccessful and Van der Merwe reluctantly gives Joos a cheque for the agreed contract price. Later that day, a police sergeant tells Van der Merwe to be ‘on the look-out for a pair of tricksters, Joos and Slyke’ who are defrauding people by pretending to be water diviners. Van der Merwe realizes that he is one of the victims and wants to stop payment on the cheque. Advise Van der Merwe on his chances of success in setting aside the contract.
1
commercial and industrial law
Examination papers/questions and its solution/answers
1
Commercial Law