QUESTION 1 Jonathan visited an art gallery with the intention of buying a painting. His attention was drawn by a painting which consisted of two framed sections, but still forming one picture. There was only one price ticket in the bottom left hand side of the painting indicating the price as R1 000. Thinking that the two sections were priced R1 000, Jonathan bought the painting, but when he handed over the money, the owner informed him that each section cost R1 000.

1.1 Is this misrepresentation or a mistake?

1.2 Motivate your answer by referring to the requirements for your answer to 1.1.

1.3 Is this contract void, valid or voidable? Motivate your answer.

QUESTION 2 An advertisement appeared in the Sunday Times, offering a reward of R200 for a lost dog called 'Hobo'. Y, who read the advertisement, found the dog and returned it to the owner.

2.1 Will Y be entitled to the reward? Motivate your answer.

2.2 Is an advertisement normally a valid offer? Motivate your answer by referring to case law.

QUESTION 3 A works for B, a hairdresser. They agree that if A ever leaves the employment of B, A will not be allowed to open a hairdressing salon within a radius of 100 km from B's premises for a period of three years. A starts her own business in the same vicinity within a period of two years.

3.1 Identify the applicable principle.

3.2 Advise B about her legal position.

QUESTION 4 Name and describe the different forms of delivery in the case of-

4.1 immovable property

4.2 moveable property

QUESTION 5 Pieter rent a car from Avec Rentals CC for 4 weeks. Before the motor had to be returned to Avec, he sold it to Janneke for R14 000. He was not authorized to do so. Janneke paid the price in cash and Pieter delivered the car to him. Discuss the legal position of:

5.1 Pieter (the seller)

5.2 Janneke (the buyer)

5.3 Avec (the true owner)

QUESTION 6 Name and discuss the remedies available to the buyer in the following cases:

6.1 B bought a second hand vehicle from D for R5 000. A week later the vehicle broke and B found out that there was a serious defect with the gearbox. He therefore could not use the vehicle at all.

6.2 B bought a second hand vehicle from D for R7 000. On delivery of the vehicle he noticed a dent in one of the doors. Discuss the remedies available to B.

QUESTION 7 Define the following legal terms:

7.1 contra bones mores

7.2 par delictum rule

7.3 parol evidence rule

7.4 voidable contract

7.5 rectification

7.6 ratification

7.7 assignment

7.8 delegation

7.9 • cession

7.10 actio quanti minoris

7.11 vacuo possessio

7.12 iusta causa

7.13 caveat subscriptor

7.14 caveat emptor

7.15 essentialia

QUESTION 8 Identify and define the form of breach of contract which is committed in each of the following instances:

8.1 Spar orders 100 kg of vegetables from farmer D. They agree that the vegetables must be delivered at Spar 's premises on Friday at 20:00. On that particular Friday D arrives with 100 kg of vegetables at Spar's premises, only to find the premises locked. D cannot find anybody to open the premises or to accept the delivery.

8.2 DEF Company concludes a contract with Z Engineers Ltd, in terms of which Z Engineers Ltd has to erect a 10-storey building for DEF, to be completed on 1 May. DEF hands over the approved plans to Z. On 1 May Z completes the building. When DEF inspects the building it is discovered that the windows were wooden frames and not aluminium frames. 8.3 ABC Shoes CC concluded a contract with Bernie's Shoe Manufacturers (Pty) Ltd in terms of which Bernie's had to manufacture 200 pairs of children's leather shoes for ABC's. The contract stated that Bernie's had to deliver the shoes not later than 1 November and that, in the event of either party breaching the contract, it could be cancelled.

8.3.1 Assume that Bernie's delivered 200 pairs of shoes on 1 November, but that these were mens' shoes.

8.3. 2 Assume that when the 200 pairs of children's shoes were delivered to ABC's on 1 November the manager of ABC's would not accept delivery, because according to him, they would not be able to sell so many shoes.

8.3.3 Assume that Bernie's failed to deliver any shoes on 1 November because their employees had been on a five-week strike and therefore no shoes could be manufactured. The strike was caused by Bernie's refusal to pay its employees.

8.3.4 Assume that on 28 October Bernie's informed ABC's that the shoes would not be manufactured and delivered as the company could not afford the leather, the price of which had recently been increased.

8.3.5 On 15 October Bernie's factory burned down, with the result that, no shoes could be manufactured and delivered to ABC's. It was later established that the factory had been set alight by the manager, hoping that their insurance company would pay out for the loss of the building.

QUESTION 9 Discuss the different kinds of misremisrepresentation and the remedies at the disposal of the aggrieved party. Optional Information: State/Country relating to question: South Africa Already Tried: Handbook Guide to Business Law 4th edition by SHAWN KOPEL.