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EM 081 - Assignment 5 - Rev 4
EM 081 - Assignment 5 - Rev 4
SECTION A
A.1. QUESTION 1
A.1.1.
Yes there is a valid contract of sale between Jennifer Harris and Grant Adams.
They are both over the age of 18 and are natural persons therefore they both have
contractual capacity
There is legality as the sale is not contrary to any legislation or public policy or good
morals and Grant is the owner of the motor cycle.
There is physical possibility in that it is absolutely objectively possible for both to perform
their duties in respect of the sale and that performance is clearly defined in that Grant will
sell his motor cycle to Jennifer and Jennifer will pay Grant R20, 000.00 for it. There is
also a clear date of when delivery will take place and when payment will be made.
There is consensus as Jennifer made an offer to purchase the motor cycle from Grant for
R20, 000.00 and Grant has accepted. They both have accepted the delivery date and
purchase price when they both signed the contract.
There are formalities in that the contract is in writing and both parties signed the contract
Further to this the specific elements required for a purchase and sale contract are also
adhered to in that there is an intention to buy and sell which is specifically present and
the object of sale is clearly determinable, the motor cycle (however I do feel that the
description of motor cycle is very vague and could lead to unnecessary confusion as
there is no mention of colour, make, model or year model, engine capacity or even a
photo) and the price has clearly been determined, R20, 000.00
A.1.2.
Between Jennifer and Grant there is a credit sale. There is an intention to pass and
receive ownership between Grant and Jennifer. Grant is the owner of the motor cycle.
Therefore ownership transfer occurs upon delivery of the motor cycle to Jennifer on 10
January 2012.
A.1.3.
The event that leads to Grant’s accident is a force majeure event as the fault of the
accident was not Grant’s or Jennifer’s but rather the drunk driver of the other car that hot
grant. In light of this there is no fault of any party to the contract.
Since the signing of the contract was on 01 January 2012 and Grant was on his way to
deliver the motor cycle to Jennifer on 10 January, so at this point ownership still had not
passed from Grant to Jennifer, and Grant was involved in an accident which makes it
impossible for Grant to deliver the motor cycle due to a force majeure event, then
Jennifer carries the risk of damage/loss to the motor cycle if the contract is perfecta.
There is no suspensive condition in the contract between Grant and Jennifer. The price is
clearly determined and the goods are determinable so the contract is perfecta. Therefore
Jennifer carries the risk of damages/loss to the motor cycle.
A.2. QUESTION 2
A.2.1.
Default by Creditor – The Kruger National Park (KNP) has an obligation to allow Peter
Parker access to the Park which they failed to do preventing him from completing the
Works. Kruger National Park (KNP) in this case is the Creditor of the Works and therefore
default by Creditor breach of contract
Prevention of Performance – The Kruger National Park failed to allow Peter Parker
access to the park preventing him from completing the works. This makes it impossible
for Peter to complete his obligations therefore prevention of performance breach of
contract.
A.3. QUESTION 3
AGREEMENT
Whereas the Client requires that certain Services should be performed by the Contractor, as
an independent contractor, namely: to design a new bridge, including all support structures,
which is to be constructed over the Sable River mountain pass.
The design will have a completion date of 18 July 2013. The Client shall provide the
Contractor with access to site from 18 February 2013 to 28 February 2013 to complete final
measurements for the design.
This Agreement will have a Lump Sum Value of R 2,500,000.00 ZAR and the Client has
accepted a proposal by the Contractor for the performance of such services.
4) Force Majeure
i) For the purposes of this Agreement “Force Majeure” shall mean an exceptional
circumstance or event arising which is beyond a Party’s control, which such Party
could not reasonably have provided against before entering into the contract and
which such Party could not reasonably have avoided or overcome and which is
not substantially attributable to the other Party.
ii) If a Party will be or is prevented from performing any part of its obligations under
the contract by Force Majeure, then the relevant Party shall give notice to the
other Party of the circumstance or event constituting the Force Majeure and shall
specify the obligations, the performance of which will be or is prevented. The
notice shall be given in writing within 14 calendar days after the Party became
aware, or should have become aware, of the relevant circumstance or event
constituting Force Majeure.
iv) Notwithstanding any other provision of this Clause, Force Majeure shall not apply
to either Party’s obligations to make payment to the other Party in this Agreement.
v) Each Party shall at all times use all reasonable endeavours to minimise any delay
in the performance of the Agreement caused by Force Majeure.
vi) A Party shall give notice to the other Party when it ceases to be affected by Force
Majeure.
vii) If the Contractor is prevented from performing any of its obligations under the
Contract by Force Majeure of which written notice has been given and suffers
delay and/or incurs cost by reason of such Force Majeure, the Contractor shall be
entitled to claim an extension of time and / or additional cost occasioned by such
delay.
viii) If the execution of substantially all the Works in progress is prevented for a
continuous period of 60 (sixty) calendar days by reason of Force Majeure of which
written notice has been given, or for multiple periods which total more than 90
(ninety) calendar days due to the same notified Force Majeure, then either Party
may give to the other Party a written notice of termination of the Contract. In this
event, the termination shall take effect 7 (seven) calendar days after the written
notice is given.
ix) Upon such termination, both Parties shall agree the final value of the work done
and, if necessary, pay any outstanding amounts due.
Signatory: ____________________________
Capacity: ____________________________
Authority: ____________________________
Signatory: ____________________________
Capacity: ____________________________
Authority: ____________________________
B.2. QUESTION 2
B.2.1. 2
B.2.2. 4
B.2.3. 45
B.2.4. 2
B.2.5. 21
B.2.6. 6
B.2.7. 2
B.2.8. 4
B.2.9. 3
B.2.10. 0
B.3. QUESTION 3
B.3.1.
Michelle has been subject to unfair labour practice in that she was not consulted or informed
as to why she was being demoted. Michelle has suffered on occupational detriment in
contravention of the protected disclosures act, 200 (act No.26 of 2000), on account of her
having made a protected disclosure defined in that act.
She can try and follow her internal company policy in terms of lodging a grievance but more
than likely will need to approach the CCMA (Commission for Conciliation, Mediation and
Arbitration). The CCMA’s remedy would be to rectify the unfairness that Michelle has
experienced by ordering that she have her old job back.
B.3.2.
If Michelle had been dismissed instead of demoted this would be an automatic unfair
constructive dismissal and would be discrimination. Michelle could go straight to the CCMA
and inform them that she had been dismissed after she had made a protected disclosure