Business Law

Exam Overview Session

THOUGHT FOR THE DAY..
 Exam details
 Exam date: 16 May 2023
 NQF level 6/ 70 marks: 10h00 – 12h20 (85 minutes to complete)
 NOTE: When writing an online proctored exam, the exam link will become available 10-
minutes before the start time of the exam to allow students to complete the ID verification and
room scan.
 Students can start the exam anytime between 8h30 – 10h30.
 The exam will take 2hours and 20 min to complete.
 Structure of exam
 Section A: Multiple choice questions and Match column questions x 35 marks
 Section B Combination of paragraph questions x 15 marks
 Section C: Case study x 20 marks
Mock Exam
Mock Exam:
 2 May 2023 to 16 May 2023

February 12, 2024 4

OVERVIEW OF CONTENT:
 Topic 1: Introduction to Business Law
- Normative rules = ethics, positive morality and law
- Ethics – individual prescribes for themselves
- Positive morality – ethical principles adopted by a community
- Law – governing rules enforced by the State
- Study the sanctions
OVERVIEW OF CONTENT:
 Topic 1: Introduction to Business Law
- South African Courts = Constitutional Court, Supreme Court of Appeal, High Court, Magistrate Court, Small Claim Court.
- Constitutional Court –Highest Court in South Africa
- Supreme Court of Appeal –not a court of first instance only can appeal and review
- High Court – study on the jurisdiction
- Magistrate Court – District Court & Regional Court = study jurisdiction
OVERVIEW OF CONTENT:
 Topic 1: Introduction to Business Law
- Valid contract – all requirements have been met for a valid contract
- Void – contract doesn’t meet requirements for a valid contract =null and void
- Voidable- where there is defective consensus: misrepresentation, duress & undue influence = contract can either be set
aside or enforced
- Study naturalia, essentialia and incidentialia
OVERVIEW OF CONTENT:
 Topic 2: Requirements of a valid contract
- Serious intention
- Consensus –parties must be of one mind / ad idem
- If there is a mistake = requirement of consensus has not been met. Study on requirements of a mistake and the types of
mistakes
- Consensus may also be defective and render the contracts voidable - misrepresentation, duress and undue influence= NB
STUDY REQUIREMENTS FOR EACH
OVERVIEW OF CONTENT:
 Topic 2: Requirements of a valid contract
-Contractual capacity- Minors under the age of 7 years – guardian/ parent act on their behalf
-Above 7 years- need assistance from guardian/parent
-Study on emancipation
- Mentally ill – no contractual capacity unless experiencing lucid intervuallum (moment of sanity)
- Study on prodigal, insolvent and drunk persons
OVERVIEW OF CONTENT:
 Topic 2: Requirements of a valid contract
-lawfulness – contract must be lawful
-performance must be possible – study on supervening impossibility e.g Covid 19
Formalities – General rule = no formalities but there are exceptions where the law requires the contract to be in writing.
Example: suretyship agreement
OVERVIEW OF CONTENT:
 Topic 3: Breach of contract
- mora debitoris – fails to deliver on time
- Mora creditoris =fails to accept performance
- Repudiation=gives a notice that he/she will not perform
- Rendering performance impossible= one party acts in a manner that a contract becomes impossible e.g burning a house
that is supposed to be delivered to the other party.
- Positive malperformance = incomplete/inappropriate performance. Example: Quality is not good
- Study requirements for each breach

Study on remedies for breach of contract = specific performance, damages etc.

OVERVIEW OF CONTENT:
 Topic 4: Types of contracts
Contract of sale –
-know the essentialia
-Study the requirements of transfer of ownership
-Study the forms of delivery
-warranty against latent defects= seller is obliged to deliver the thing to the purchaser without defects = study the remedies
-study passing of risk rule and what it entails
OVERVIEW OF CONTENT:
 Topic 4: Types of contracts
Lease agreements–
-know the essentialia
-Study the duties of lessor and lessee
-Study tacit hypothec
- Study huur gaat voor koop rule
OVERVIEW OF CONTENT:
 Topic 4 : Types of contracts
Law of agency–
-Agency is when one person (agent) concludes a juristic act for or on behalf of another, who is called the principal, with the
result that a legal tie arises between the principal and a third party…
- Agency can be effect by an agreement, by operation of law, estoppel and ratification NB = study requirements
- Study duties of a principal and an agent
OVERVIEW OF CONTENT:
 Topic 5: Types of contracts
Insurance
-When completing a proposal form – there is a duty to disclose and answer truthfully and accurately
-Study on affirmative warranties & promissory warranties
-Study principle of subrogation
OVERVIEW OF CONTENT:
 Topic 5: Types of contracts
Suretyship
-A valid suretyship agreement must be in writing and must contain names of surety, debtor and creditor
Study Brink v Humphries case 2005 2 SA 419(SCA)
-Study rights of a surety and creditor
 SUMMATIVE EXAM

General approach (Cont’d)

- Read the question carefully
- Pay particular attention to the wording of the question
- Underline key words and phrases
- Make sure that you understand the question
- What is the question asking for?
- What does the examiner expect ?
- Follow any tips given about how to answer
 SUMMATIVE EXAM

Problem-type or scenario-based questions

- A scenario is sketched out for you
- A problem is presented to you
- Questions take various forms
(a) Advise one of the parties
(b) Provide a decision on the matter
(c) If you were a judge how would you decide the matter?
(d) What are the prospects of success?
- Specific approach or method of answering, especially so if the
question is globular (i.e. advise (10 or more marks) and not broken
down into many sub-questions carrying small marks
 SUMMATIVE EXAM

Problem-type or scenario based questions

Structure of your answer

1. What is the issue?

2. What is the applicable law or legal principle?
3. What are the relevant cases?
4. Apply the law or legal principle to the facts
5. What is the legal conclusion or outcome?
6. Answer the question that has been asked