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problem1) Briefly describe the guidelines (as set out in the Constitution) that a court must abide by when it interprets legislation.

problem2) In each case below, discuss whether a valid agreement was concluded or not. Give reasons for your answers.
Take note that no marks will be awarded for a mere yes or no.

2.1 Ben places a bet (R100) at a dog fight on his friend’s dog Charlie. Charlie wins the fight.

2.2 Joseph noticed the advertisement below on a lamppost.


Joseph finds Molly’s dead body in a ditch near his house and returns it to the owner to claim the reward.

problem3) Name seven (7) types of transactions which are exempted from the application of the Consumer Protection Act 68 of 2008.

problem4) Name any eight (8) goods or services which are excluded from the right of cooling-off in terms of section 44 of the Electronic Communications and Transactions Act 25 of 2005.


5.1 What influence do the following facts have on the validity of the relevant contract? Give reasons for your answer.

5.1.1 Mpho is an insurance call centre agent at Bonussure. Lucky phoned Bonussure to take up insurance on his vehicle. During negotiations Lucky enquired whether Bonussure will pay out in the event of total destruction by meteorites or similar objects falling from the sky or outer space. Mpho confirmed that the vehicle is insured against any damage irrespective of the cause. Based on this confirmation Lucky agreed to the agreement and his bank account was immediately debited with the insurance premium of R459.36. When Lucky finally received the policy documents two months later (the delay was caused by a post office strike) it transpired that any damage caused by any type of falling object is an excluded risk.


Business Law & Ethics, Finance

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