FACULTY OF LAW

LAW OF CONTRACT

LWCT311

TEST 2 – MAY 2016

INTERNAL EXAMINER: Mrs Elminda Vos

TOTAL MARKS: 50
DURATION: 1 ½ Hours

SECTION A: Short Questions 20 Marks

SECTION B: Discussion Questions 30 Marks

INSTRUCTIONS TO CANDIDATES:
1. Read each question carefully.
2. You must answer ALL sections.
3. Answer all questions in the answer book provided.
4. All rough work should be done in the back of the answer book and indicated as such.
5. This test paper should not be removed from the venue.

NB This test paper consists of 5 pages

This test contributes 25% towards the final mark.

TEST 2 May 2016 LWCT311 Page 1 of 5

 Section A

Short Questions 20 Marks

Answer the following questions in your answer book.

QUESTION 1
Identify the error below, with reference to the Roman classification, and explain
the influence that it will have on a contract?
1.1 B purchases a car because he incorrectly thinks that he has won the Lotto in a
competition. (2)
1.2 S does not know if the purchaser is J or his brother B. (2)
1.3 S believes that he concluded a sale agreement, whereas H believes that they
concluded a lease agreement. (2)
1.4 S agreed ted to rent a town house in a residential development in Midrand, but
is not sure whether his unit is No. 1a or 1 b. He is sure the agent pointed out No.
1a, but the agent actually pointed out 1b. (2)
1.5 K agrees to buy L’s MG cabriolet. He is under the impression that the cabriolet
has suede leather seats. In reality the seats are faux suede (fake leather). (2)
[10]

QUESTION 2
Derrick is an avid collector of World War 2 (WW2) memorabilia. He has a vast
collection of weapons, photos and metal models of soldiers in various uniforms. He
decides to sell his rare antique WW2 rifle to Peter who is keen to own some of the
memorabilia. They agree on a price of R10 000 for the rifle. Discuss whether
performance is possible in the following scenarios. Do not forget to discuss the effect
on the validity of the agreements.
2.1 Whilst contracting with Peter, and unbeknown to Derrick, his (Derrick’s) rare
antique gun was stolen from his home by a thief the previous day. (3)

TEST 2 May 2016 LWCT311 Page 2 of 5

2.2 Would your answer have been different if the term in the contract of sale was
worded as follows; “The antique World War 2 rifle will be sold at R10 000, failing
which the parties agree that the seller will sell his metal antique army soldiers at
the same price.” How would this clause affect performance and validity of
the contract if the gun is then stolen from Derrick’s home before delivery?
(2)
[5]

QUESTION 3
A and B conclude a written contract for the sale of a printer. After the contract has been
concluded, A alleges that B orally guaranteed that the printer could print 30 pages in
a minute and presents a taped recording on his cell phone wherein B indeed makes
such a statement. The guarantee is not reflected in the written document. With
reference to the set of facts, briefly discuss the parol evidence rule and advise
whether A could successfully claim breach of contract on the side of B. [5]

SUBTOTAL: [20]

TEST 2 May 2016 LWCT311 Page 3 of 5

 Section B

Discussion Questions 30 Marks

Answer the following questions in your answer book.

QUESTION 1
Doctor Prinsloo (Prinsloo) is a plastic surgeon who collects rare vintage cars as a
hobby. One of his long-standing patients, Mr. Skeen (Skeen), happened to possess a
rare 1953 Ford F100 vintage truck that Prinsloo desires. Skeen is very fond of his
vehicle, as it used to be his father’s. When Skeen is admitted to hospital in need of an
emergency heart by-pass operation, he agrees to sell the truck to Prinsloo for R50 000
under market value. The transaction takes place just before Prinsloo performs the life-
saving operation on him. After the operation Skeen regrets having sold the vehicle. He
approaches you for advice as to whether he may withdraw from the contract. He
admits that at the time of the sale he felt very relieved that Prinsloo would be able to
perform the surgery on such short notice, and therefore was happy to sell the vehicle
to Prinsloo, when prompted about the sale.

1.1 Advise Skeen on his legal position including possible remedies available to
him, in terms of the common law. (15)
1.2 Briefly describe the provisions of the Consumer Protection Act 68 of 2008 on
improperly obtained consensus. (5)
[20]

QUESTION 2
Sipho runs a successful dental practice in Juta Street in Johannesburg. His practice
has been in operation for 20 years and is popular in the business district of the
Braamfontein and the Johannesburg Central Business District (CBD). Sipho decides
to sell his practice to a young upcoming dentist, Glenda. Glenda insists on adding a
clause to the contract that states; “The seller undertakes not to operate a dental
practice in the Johannesburg CBD, Braamfontein, Newtown and surrounding areas for
a period of 2 years from the date of sale.” Sipho signs this clause contained in the sale
agreement as he has saved a substantial amount of money and intends retiring and

TEST 2 May 2016 LWCT311 Page 4 of 5

travelling in France with his boyfriend, Sebastien, for one year, and thereafter attend
the famous Ecole du Cordon Bleu cooking school in Paris.
2.1 Identify the type of clause inserted into the contract. (1)
2.2 Based on the approach followed in the decision of Magna Alloys & Research
(SA) (Pty) Ltd v Ellis 1984 (4) SA 874 (A), discuss the validity of the clause.
Your answer must include a summary of the explanation of the Magna Alloys
decision regarding these types of clauses as well as the enforceability of the
clause in Sipho and Glenda’s sale agreement. (6)
2.3 Discuss, using relevant case law, whether the Constitution has affected the
decision in the Magna Alloys case in any significant way. (3)
[10]

SUBTOTAL: [30]

TOTAL: [50]

TEST 2 May 2016 LWCT311 Page 5 of 5