UNIVERSITY EXAMINATIONS

Oct/Nov 2022

CLA2602

COMMERCIAL LAW 2B

Marks:100
Duration: 4 Hours

First examiner: ADV. MP MAKAKABA

Second examiner: ADV. MD TUBA

This paper consists of 9 pages.

INSTRUCTIONS FOR A TAKE-HOME EXAM ON MYEXAMS

PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY BEFORE ANSWERING THE

EXAMINATION QUESTIONS.

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 CONFIDENTIAL CLA2602
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1. The examination question paper counts 100 marks.

2. It consists of 5 SECTIONS (NB: SECTION A is divided into PART A AND B). Answer ALL of
the questions in these sections.

. SECTION A (PART A) consists of questions on ( PART A) BANKING REGULATIONS (30

Marks)
. SECTION A (PART B) consists of questions on CONSUMER CREDIT (15 Marks)
. SECTION B consists of questions on OTHER METHODS OF PAYMENT (15 Marks)
. SECTION C consists of questions on THE LAW OF TRUSTS (15 Marks)
. SECTION D consists of questions on THE LAW OF INSOLVENCY (10 Marks)
. SECTION E consists of questions on THE LAW OF ADMINISTRATION OF ESTATES (15
Marks)

3. The duration of the examination is 4 hours. You are given an additional 30 minutes to FINALISE
your submission before 12:30pm (South African Standard Time). Your answers must be
submitted on the myExams Platform.

4. This is an open-book examination. You may consult your prescribed study material during the
examination. While the examination is in progress, you are not allowed to consult another person
to assist you to answer any of the questions contained in this question paper. You may also not
assist another student in answering any of the questions contained in this question paper.

5. This examination is proctored via the Invigilator App. You are required to activate the
Invigilator app between 07:45AM and 08:30AM (South African Standard Time).

6. Your exam file must be uploaded on the myExams platform on Moodle.

6.1 You are advised to preview your submission (answer script) to ensure legibility and that the
correct answer script file has been uploaded.

6.2 Once the official examination time per the examination timetable has expired, you are provided
one hour to submit your answer script. Submissions made after the submission period has lapsed
will be rejected per the examination regulations and will not be marked.

7. The cover page for your take-home exam must include your name, student number and the
module code.

8. It is preferred that your take-home exam is typed. However, handwritten submissions will also be
accepted. If the take-home exam is typed, the maximum length is 15 pages (which includes the
cover page and the bibliography). If the take-home exam is handwritten, the maximum length is
20 pages (which includes the cover page and the bibliography).

9. Whether your answers are typed or handwritten, your submission on the myExams platform on
Moodle must be made in the form of one PDF document. Only the last file uploaded and
submitted will be marked.

9.1 The exam answer file that you submit must not be password protected or uploaded as a “read
only” file.

9.2 Your examination answer file will not be marked if:

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9.2.1 you send your examination answer file via email.

9.2.2 you submit the incorrect examination answer file. A mark of 0% will be awarded.
9.2.3 you submit your exam answer file on an unofficial examination platform (including the invigilator
cellphone application).
9.2.4 you submit your examination answer file in the incorrect file format.
9.2.5 you submit a password-protected document.
9.2.6 you submit your examination answer file late
9.2.7 you submit your answer file from a registered student account that is not your own.

9.3 Incorrect answer scripts and/or submissions made on unofficial examinations platforms (including
the invigilator cellphone application) will not be marked and no opportunity will be granted for
resubmission.

9.4 The mark awarded for an illegible examination answer file submission will be your final mark.
You will not be allowed to resubmit after the scheduled closing date and time of the exam.

10. Do not use abbreviations or SMS language.

11. When answering the take-home exam questions, remember that an open-book exam is a test at
a higher level than the usual type of exam, where memory is tested as much as insight. In an
open-book exam, you need not memorise any information. You are expected to prove that you
can use information, rather than merely repeat it. In brief, what is being tested is factual knowledge,
understanding and the correct application thereof, not memory skills. For this reason, you do not
earn marks by merely detailing a list of all the information that you think might be relevant to a
particular question. This gives no indication that you know what statutory or other provisions are
applicable in a specific context. You are expected to identify precisely what information applies,
and then explain why you think so.

11.1 PLEASE DO NOT CUT AND PASTE ANSWERS FROM THE STUDY GUIDE (OR ANY OTHER
SOURCE).

12. The arguments that you make must be logical, well-structured and substantiated by all of the
relevant legal principles. You are given 4 hours (not 2 hours) to complete the take-home exam.
Use the time given wisely.

12.1 A number of students lose marks because they do not approach problem-type questions correctly.
When answering such questions, it is important to first clarify for yourself the area of work where
the answer must be sought. Once you have done this, set out the relevant legal principles. Deal
only with those principles that relate to the given facts. Next, apply these principles to the facts.
This is where most of the students lose marks - they set out the law in some detail, but then do
not illustrate how it applies to the factual situation they have been asked to solve. Finally, state
your conclusion.

13. You must complete the online declaration of own work when submitting.
13.1 By ticking the Honesty Declaration, you confirm that you have read (i) the University’s Policy on
Copyright Infringement and Plagiarism and the Student Disciplinary Code, which are both
available on myUnisa: www.unisa.ac.za/unisarules, and (ii) the information relating to student
values and plagiarism that is found at https://www.unisa.ac.za/sites/myunisa/default/Study-@-
Unisa/Student-values-and-rules.

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13.2 Students suspected of dishonest conduct during the examinations will be subjected to disciplinary
processes. Students may not communicate with other students, or request assistance from other
students during examinations. Plagiarism is a violation of academic integrity, and students who do
plagiarise or copy verbatim from published work will be in violation of the Policy on Academic
Integrity and the Student Disciplinary Code and may be referred to disciplinary hearing. Unisa has
a zero tolerance for plagiarism and/or any other forms of academic dishonesty.

13.3 Unless a student is exempted because of disability or incarceration, students who have not utilised
invigilation or proctoring tools will be deemed to have transgressed Unisa’s examination rules and
will have their marks withheld.

PLEASE NOTE:

If you experience challenges with the Invigilator app, please send a WhatsApp message the
technical helpdesk on 073 505 8273. Do not contact the lecturers.

Students experiencing technical challenges may contact the SCSC on 080 000 1870 or email
Examenquiries@unisa.ac.za or refer to Get-Help for the list of additional contact numbers.

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SECTION A: PART A - BANKING REGULATIONS

QUESTION 1

Discuss THREE (3) ways in terms of which different types of banks may be categorised.
Provide ONE example for each. (6)

QUESTION 2

Differentiate between financial integrity and consumer protection as trade-offs to financial

inclusion. In your answer, do not discuss policy and regulatory measures that have been
adopted to address these trade-offs. (4)
[10]

QUESTION 3

Study the following factual scenario and answer the questions below:

John is conducting a business as a civil engineer and employs twenty-five employees. He

persuades his employees to deposit certain amounts of their salaries with him and to earn
interests to a maximum of 10%. None of his employees has deposited money and no deposit
has been accepted by him.

3.1 Discuss whether John’s conduct constitutes “the business of a bank” in terms of the
Banks Act 94 of 1990 by focusing on the following aspects.

(a) Whether the employees are “general public”. (3)

(b) Whether he, John is “soliciting for deposit”. (3)

3.2 Discuss THREE (3) types of activities that are excluded from the definition of “the
business of a bank” in terms of the Banks Act 94 of 1990. (6)
[12]

QUESTION 4

4.1 Briefly describe the following types of stokvels.

(a) Investment club (2)

(b) Gooi-gooi” (2)
(c) High budget association (2)
[6]
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4.2 Briefly explain whether a stokvel that involves borrowing money from a third party
such as a bank constitutes a “credit agreement” in terms of the National credit Act (32
of 2005). (2)

Total for Section A: Part A: 30 Marks

SECTION A: PART B - CONSUMER CREDIT

QUESTION 1

Study the following factual scenario and answer the questions below:

Maria enters into an agreement with BIG Finance that finances the purchase of a new guitar
of R20 000. Maria pays a deposit of R3 000 on the guitar and undertakes to pay the balance
of the purchase price in 12 monthly instalments of R1400,50, plus interest. BIG Finance
remains the owner of the guitar until Maria has paid the last of the instalments. BIG Finance
is a private company which specialises in selling classical instruments, with an annual
turnover of R15 million. BIG Finance also enters into an agreement with BRIGHT Bank. In
terms of the agreement BRIGHT Bank advances credit in the amount of R500 000 to BIG
Finance.

1.1 When does the National Credit Act 34 of 2005 apply to a credit agreement?
Briefly explain. (5)

1.2 Assume that the National Credit Act 34 of 2005 applies to the agreement between Maria
and BIG Finance. What type and size of credit agreement will it be in terms of the National
Credit Act 34 of 2005? (2)

1.3 BIG Finance is having difficulty in satisfying its debts in a timely manner. BRIGHT Bank
intends to institute legal proceedings against BIG Finance for their default of payment.
BIG finance approaches you for advice as to whether the provisions of the National Credit
Act 34 of 2005 offer any protection to them. Briefly advise them. (3)

1.4 Some of BIG Finance’s debtors who are in arrears with their monthly payments allege
that they are over-indebted and therefore refuse to pay the outstanding amounts. As a
result thereof, BIG Finance wants to know what the test for over-indebtedness is and
how and when a determination of over-indebtedness is made. Briefly advise them.
(5)
[15]
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Total for Section A: Part B: 15 Marks

TOTAL FOR SECTION A: 45 MARKS

SECTION B: OTHER METHODS OF PAYMENT

QUESTION 1

Study the following factual scenario and answer the questions below:

When Keabetswe arrives home from Donty Shopping Mall, where he spent almost the whole
day doing some shopping, he could not find his wallet in his pockets. Remembering that his
credit card was in the wallet, Keabetswe immediately calls ABC Bank to notify them of the
loss of his credit card as the issuer of the card. As soon as he drops the phone, he receives
an sms notification of a R3 899.00 purchase of liquor with his credit card at Mmamazala Liquor
Store.

1.1 In addition to payment, credit cards can still be used for other purposes. Describe TWO
(2) economic functions of credit cards. (2)

1.2 With reference to both standard terms and the National Credit Act 34 of 2005 (NCA)
advise who bears the risk of the loss of R3899,00 in the above scenario. (3)
[5]
QUESTION 2

Discuss TWO (2) differences between a stop order and debit order as methods of payment.
(4)

QUESTION 3

Discuss the operation of documentary letter of credit. (4)

QUESTION 4

Define the following abbreviations:

4.1 ATM
4.2 EFT (2)

TOTAL FOR SECTION B: 15 MARKS

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SECTION C: THE LAW OF TRUSTS

QUESTION 1

List FIVE (5) instances in terms of which a trust will terminate. (5)

QUESTION 2

List THREE (3) examples of the types of documents that are considered “[a] trust document”
in terms of the Trust Property Control Act 57 of 1988. (3)

QUESTION 3

Study the following factual scenario and answer the question below:

In his will, Piet, who is deceased, bequeathed his estate to his three sons, Karel, George, and
Louis jointly in undivided shares. The sons realise that such an arrangement will inconvenience
them as Karel, a struggling artist, lives in Johannesburg and George, a student, lives in Cape
Town. They decide to enter into a contract in terms of which Karel will receive 70% of the estate
and George will receive 30% of the estate, while Louis, who is a wealthy businessman, living
in London, forfeits his entire benefit from the estate.

Describe the type of contract entered into and discuss whether the Master will approve it. (7)

TOTAL FOR SECTION C: 15 MARKS

SECTION D: THE LAW OF INSOLVENCY

QUESTION 1

Study the following factual scenario and answer the questions below:

Alexander approaches a court to apply for the sequestration of his estate.

1.1 What type of sequestration process is this? (1)

1.2 What are the requirements that Alexander must prove in order to obtain a sequestration
order? (4)
[5]

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QUESTION 2

Describe what the term “composition” means in the context of insolvency law. (5)

TOTAL FOR SECTION D: 10 MARKS

SECTION E: THE LAW OF ADMINISTRATION OF ESTATE

QUESTION 1

4.1 Describe FOUR requirements of a valid will. (4)

4.2 Who registers the will and keeps it in custody? (2)

4.3 If the person you mentioned in 4.2 above accepts the will, does that mean that the will
is valid? Motivate your answer. (3)

4.4 Discuss THREE (3) duties of the executor. (3)

4.5 Do you think it is necessary for the estate of the deceased to be administered?
Motivate your answer by giving TWO (2) reasons. (3)

TOTAL FOR SECTION E: 15 MARKS

[TOTAL: 100 MARKS]

©
UNISA 2022

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