PC-FT-IURI413.

1-1
Requirements for this paper/Benodighede vir hierdie vraestel: Resources/Hulpmiddels:

Answer Scripts/ Multi-choice cards (A4)/

Antwoordskrifte: X Multikeusekaarte (A4)
Attendance Slips (Fill-in Paper)/ Graph Paper/
Presensiestrokies (Invulvraestel): GrafiekPapier
Scrap Paper/ Calculators/
Rofwerkpapier Sakrekenaars
Multi-choice cards (A5)/ Laptop (Power not provided)/
Multikeusekaarte (A5) Skootrekenaar (Krag word nie voorsien nie)

Type of Assessment/ Duration/ 3 Hrs 00 Min

Tipe Assessering:
Exam Opportunity:1 Tydsduur:

Paper Number/ Maximum Marks/ 100

1
Vraestel Nommer: Maksimum Punte:

Module Code/ Module Description/

IURI413 SPECIFIC CONTRACTS
Modulekode: Module Beskrywing:

Examiner(s)/ Mr W Nkhumise-MC;Prof H Combrinck- Date/

Eksaminator(e): PC; 2023/06/06
Datum:

Time/
Tyd: 14:00
Internal/Interne
Ms Z Essop-PC;
Moderator(s): Qualification/
Kwalifikasie: LLB
External Moderator(s)/ Mr K Seanego
Eksterne Moderator(s):

Submission of answer scripts/Inhandiging van antwoordskrifte: ORDINARY

Instructions

• Please take note that for the purposes of anonymity you need not put your name on your answer sheet.
It will be sufficient to use only your student number. However, you are welcome to use your name as
well as your student number on the answer sheet and you will not be prejudiced should you do so. Your
student number should always appear on the answer sheet.
• Please indicate which questions you answered on the cover page of the first exam script.
• Bear in mind that correct language usage, full sentences and neat, accurate, but concise formulation
play an important role in the assessment of your answers.
• It is in your own interest for your paper to be fully legible.
• Refer to applicable case law and legislation.
______________________________________________________________________________________

QUESTION 1 [25]
Simon bought a bedroom suite on credit from New Age Furniture (Pty) Ltd on 20 May 2023. The sale
agreement provided that the purchase price of the bedroom suite is R20 000.00, which is payable in monthly
instalments of R625.00 at an interest rate of 5,5% over a period of 32 months. The parties further agreed that
ownership will be transferred to Simon after payment of the last instalment in terms of the sale
agreement. Simon now comes to see you for legal advice.
1.1 Assuming that the sale agreement between Simon and New Age Furniture resorts under a “credit
transaction” as set out in section 8(4) of the National Credit Act 34 of 2005, identify the type of
credit transaction and explain what it consists of. (3)
1.2 Advise Simon on whether New Age Furniture (Pty) Ltd is required to register as a credit provider for
the purposes of the National Credit Act 34 of 2005. (3)
1.3 Provide one example each of an unlawful credit agreement as well as an unlawful provision in a credit
agreement and explain the consequences of concluding an unlawful credit agreement and inclusion
of an unlawful provision in a credit agreement respectively. (7)
1.4 After paying two months’ instalments, Simon realises that he cannot keep up with further instalments
as required under the agreement. He now wants to find out whether it will be possible to return the
bedroom suite to New Age Furnishers in order for it to be sold to settle the outstanding amount he still
owes. Set out what Simon’s rights are in terms of the National Credit Act 34 of 2005. (7)
1.5 During the consultation, Simon describes his poor financial situation to you, and you realise that he
may benefit from a debt review procedure. Explain the aim of a debt review and briefly summarise the
procedure. (5)
______________________________________________________________________________________

IURI 413 Paper 1 | Exam 1st Opp | Full-time 1/5

QUESTION 2 [25]

Please consult Addendum A to this paper in order to answer this question.

Alexandra is the owner of a house located in the municipal area of Sedibeng, Gauteng. The property is for sale
and Mandla makes an offer to purchase. After negotiating about the purchase price, Mandla and Alexandra
reach an agreement and they draw up a deed of alienation. Two days before the property is due to be
registered in Mandla’s name, the Registrar of Deeds notices that the lines at some of the clauses have been
left blank and she informs the two parties that their contract is void. Mandla comes to consult with you for legal
advice on how this situation can be addressed. Please provide him with comprehensive legal advice.
Reference to case law is important.

This question will be assessed with reference to the matrix included at the end of this paper.

QUESTION 3 [25]

3.1 In the case of a lease agreement, the lessor and lessee must reach consensus on the leased property.
Write a short note on the nature of a “thing” (leased property) as one of the essentialia of a lease
contract. (6)
3.2 On 1 March 2020, Petronella, a teacher from Vryburg, leased her house to Neliswa for period of two
years. Upon taking occupation, Neliswa discovered that the roof was leaking. During rainy seasons
Neliswa was constrained as she had to move the furniture to the dry areas in the house and water
continued to drip from the roof a few days after the rain, causing some serious cracks and dark spots
on the ceiling. Neliswa repeatedly asked Petronella to repair the leaking roof and ceiling, but she failed
to do so. Finally, Neliswa had to arrange and pay for the repairs to the leaking roof and the ceiling
herself since that severely interfered with her right to use and enjoyment of the leased property. On
30 April 2023, Petronella served Neliswa with one month’s notice of termination of the lease contract.
Neliswa refuses to vacate the house, claiming that she has made certain repairs to the property and
that she therefore had the right of retention until such time Petronella has fully compensated her for
the costs of the repairs to the property.

Neliswa approaches you for legal advice and she wants to know whether she will be able to claim
compensation from Petronella for the repairs effected on the leased property. Advise Neliswa fully and
give reasons for your answer. (10)

Answers to this question will be assessed reference to the matrix included at the end of this paper.

3.3 Write a short note on either of the following topics within the context of the contract of lease. Indicate
your choice clearly by numbering your answer correctly.

IURI 413 Paper 1 | Exam 1st Opp | Full-time 2/5

 3.3.1 Write a short essay in which you set out the general principles governing the duty of the lessee
to pay rent in terms of a contract of lease. (9)

OR

3.3.2 Write an essay in which you set out the legal principles and rules governing the requirement
of a “written contract” within the context of contracts of lease of immovable property. In your
essay you must discuss the statutory requirements and the consequences of failure by the
landlord to provide the tenant with a written contract in terms of the Rental Housing Act 35 of
1999 as well as the Consumer Protection Act 68 of 2008. (9)
______________________________________________________________________________________

QUESTION 4 [25]

4.1 On 10 January 2023, Florence, a 20-year-old aspirant ballet dancer from Galaxy Dance Foundation,
applied for a study loan in the amount of R30 000.00 from First Rand Bank Ltd. Pursuant to the
granting of the loan, her brother George reached a verbal agreement with the Regional Manager of
First Rand Bank Ltd that he will pay the whole or part of the loan amount if Florence fails to pay.
Explain to the parties whether the agreement between First Rand Bank Ltd and George is valid. (8)

4.2 Write a short note on either of the following topics within the context of Law of Security (refer to case
law and authority where applicable):

NB: Marks may be awarded for appropriate reliance on authorities and lucidity of expression.

4.2.1 With the use of headings, briefly distinguish between a debtor-creditor lien as well as salvage
(storage) and improvement lien as forms of enrichment liens. In your answer you should
indicate the type of expenses you can claim with each type of lien. (11)

OR

.4.2.2 With the use of headings, briefly explain the distinction between special mortgage over
immovable property, kustingbrief and covering bond as forms of mortgage bonds. In your
discussion you should briefly discuss the nature and legal effect of these types of mortgage
bonds as forms of real security. Refer to case law and authority where
applicable. (11)

4.3 Define a pledge as a form of limited real security. In your answer you should also briefly explain what
this type of limited real right entails. (6)

TOTAL: 100

File reference: 8.1.7.2.2

IURI 413 Paper 1 | Exam 1st Opp | Full-time 3/5

 MATRIX FOR MARKS ALLOCATION

Applicable to Question 2 and Question 3.2.

Mark Allocation
Criteria

0–3 4–6 7 – 10

Did the student Student failed to Student to some extent Student successfully
correctly identify the correctly identify the correctly identified the identified the relevant
legal issues? legal issues legal issues, but with legal issues and
shortcomings displayed awareness of
finer nuances

Did the student Legal principles not Legal principles set out Student adequately set
adequately set out the adequately set out by adequately to some out legal principles and
applicable legal student extent, but gaps are left displayed awareness of
principles? finer nuances

Did the student refer to Little or no case law Some reference to Student provided a
relevant case law? listed or discussed case law, but comprehensive and
discussion of court’s correct discussion of
findings and ratio case law focusing on
decidendi not adequate court findings and ratio
decidendi

Did the student provide Student failed to Student provided a Student provided a well
a well formulated provide a well legal argument that formulated legal
argument which was formulated legal was not well argument that was
succinctly set out and argument/ argument formulated/ not succinctly set out and
well substantiated? not set out succinctly/ adequately well substantiated.
not adequately substantiated
substantiated

IURI 413 Paper 1 | Exam 1st Opp | Full-time 4/5