CONTRACT OF SALE - gimmenotes



UNISA CLA 1503 – Assignment questions

1. CONTRACT OF SALE (CHAP 13)

1.

Which one of the following statements is correct?

1. An important objective of the alienation of Land Act 68 of 1981 is to protect sellers of land in unproclaimed townships should proclamation not eventually take place. (sellers?)

2. The alienation of Land Act 68 of 1981 provides that consideration may be received in respect of the sale of a stand or sectional title unit which is not yet registrable.(not provide)

3. A purchaser of Land has the right to claim transfer of land on his name once at least 50% of the purchase price has been paid.

4. When the transfer of land is registered , a mortgage bond over the land is simultaneously registered in favour of the seller. (Balance)

2. Which of the following is an example of delivery with the short hand?

A Peter points out his car to Jennie which he wants to sell to her.

B Peter hands his car keys to Jenny after he has sold it to her.

C Jennie has Peter’s car in her possession before she buys it from him.

3 If a merx is bought and it has a latent defect which is not so material that the buyer would have refused to buy it if he had known about the defect, the buyer will have to be satisfied to claim a reduction of the purchase price. This is known as:

A actio quanti minoris

B actio redhibitori

C actio empti

4 What does the term “voetstoots” mean?

A. An article is sold with a latent defect.

B. The article is sold “as is”.

C. The contract of sale has a resolutive condition.

5

In which of these circumstances may the actio redhibitori be used?

A. The latent defect is so material that if the buyer had known of it they would not have bought the article.

B. The latent defect is not so material so the buyer would still have bought the article if he had known about the defect.

C. Where the merx is delivered without the good qualities guaranteed by the seller.

6. Consider the following statements:

A Consensus regarding the date and time of delivery

B Consensus regarding the merx

C Consensus regarding the intention to pass ownership

D Consensus regarding the purchase price

Which of the above are the essentialia of a contract of sale?

1. A & C

2. A,C & D

3. B & D

4. A, B & D

7. A and B enter into an agreement in terms of which B will use A’s car for a period of two weeks. After

A period of two weeks, B makes an offer to A to buy A’s car. They agree on terms of payment and B buys the car,

Which one of the following forms of delivery has taken place?

1. delivery with the long hand

2. symbolic delivery

3. delivery with the short hand

4. no delivery took place

8.

Which one of the following actions can the purchaser use if the merx has a defect which does not render it completely useless?

1. Action Quanti minoris

2. Actio redhibitoria

3. Rei vindication

4. Actio ex empti

9.

Consider the following statements:

A. J agrees to deliver his farm “Sweet Valley” to P in exchange for P’s farm.

B J agrees to deliver his farm “ Sweet Valley” to P against the payment of R 1 mil

C J agrees to deliver a game farm of P’s choice against payment of R 1 mil.

D J agees to deliver his farm “sweet Valley” to P against payment of a price to be determined by the Land Bank.

Indicate in which statements valid contracts of sale were concluded:

1. A & B

2. A & C

3. A & D

4. B & C

5 B & D

10.

Which one of the following is correct?

1. In a contract of sale the seller agrees to deliver the merx in exchange for the purchase price.

2 The merx is only definite or ascertainable if it is corporeal.

3 In a warranty against eviction the seller undertakes to preserve the merx until delivery to the purchaser.

4. The only remedy for a defect which is so material as to render the merx useless or less useful for the purpose for which it was bought, is the action redhibitoria.

11.

Thabo orders 10 tons of mopane worms from Tesane to be

delivered by 25 December 2005, to arrive on

time for a Christmas celebration at his resuarant.

Tesane collects the mpoane worms early in December. His wife

suddenly gets ill and he has to go her

Village and look after her. He instructs his 10 year old son to

clean, roast and pack the worms in time for

delivery to Thabo. On his return he finds the worms rotten. He

washes the worms and leaves them in the

sun to dry. He then packs them into sacks and delivers them to

Thabo. He collects the purchase price for

them. Thabo soon notices a bad smell from the sacks. He

discovers that half the worms are not edible.

Consider the following statements:

A Thabo has to bear the loss as the contract was concluded prior to the loss

B Thabo may seek relief ito action redhibitoria

C Thabo cannot sue Tesane for damages or breach of contract as it was not Tesane’s fault some of the worms are bad. (on latent defects only)

D The damage could not be detected when Tesane delivered the worms to Thabo.

Indicate which of the above statements are correct.

1. A & B

2. B & C (SHOULD BE B & D)

3. B only

4. C & D

5. D only ………………I get B & D

12

Sue is renting Sam’s house, agrees to buy the house. Sue gives

security for the paymnt of the purchase

price., and Sam hands her the keys to the house.

Which one of the following statements is correct?

1. Ownership passed from Sam to Sue because symbolic delivery took place.

2. Ownership passed from Sam to Sue because constitutum possessorium took place

3. Ownership did not pass from Sam to Sue, because Sue did not pay the purchase price.

4. Ownership did not pass from Sam to Sue, because registration has not yet taken place.

13

G buys a car from S for R 40 000. One week later G is unable to

get the car going and has to have the car towed to a service

station.

The towing costs R 1 500. They tell him the gear box has seized

up. It appears the problem existed even before G bought the car

from S, but S was unaware of this. According to the service

Station the value of the defective car is now only R 10 000

Which one of the following statements is correct?

1. G has no remedy because S did not know about the defect.

2. G may claim R 41 500 from S on returning the car to S

3. G may claim R 40 000 from S on returning the car to S

4. G may claim R 10 000 from S on returning the car to S

14

L sells H a mare for the purpose of horse racing. 2 months later,

much to both parties surprise, the mare dies of a weak heart after

a race. A post-mortem on the mare shows that she was born with

a weak heart.

Which one of the following statements is incorrect?

1. L is entitled to the corpse of the mare

2. L must repay H R 500 000

3. L must repay H R 500 000, as well as interest on that amount.

4. L does not have to pay the vets account for treating the mare after the race.

15

Which one of the following is an example of transfer of ownership by Constitutum Pssessorium?

1. A lends a horse to B. While the horse is in B’s possession, they agree that she will buy it from A.

2. The merx is pointed out and made available to the buyer

3. Anne sells her horse to B. They agree tha A will hire the horse from B. The horse remains in A’s possession.

4. A sells her horse to B. She delivers the horse by driving it to B’s farm.

16.

Lara buys a horse from M. The purchase price is paid and the

horse is delivered to Lara. 3 months later ,John claims the horse

from L. John is able to prove that the horse belonged to him, but

was stolen by X, who in turn sold it to M. M had not been aware

that the horse was stolen.

Which one of the following statements is correct?

1. Lara can bring rei vindication against John.

2. Lara can claim damages from X

3. The contract between Lara and M is void because of supervening impossibility of performance

4. The contract between L & M is void because it is legally impossible

5. L can claim damages from m if she returns the horse to John. (Warranty against eviction)

17.

The fact that a contract of sale is perfecta means that:

1. The purchaser acquires ownership of the merx

2. The seller and the Purchaser are released from their respective obligations.

3. The risk of accidental damage to or loss of the merx passes to the purchaser

4. If the merx is accidentally damaged or lost before delivery takes place, the seller bears the loss.

18. (I do not Agree , but that’s what UNISA say)

Joan who is in JHB, buys 6 bottles of scarce wine from P in Cape

town. The Bottles of wine are to be transported to JHB by acourier

company. Joan has given security for payment of the purchase

price.

Joan acquires ownership of the 6 bottles of wine at the time of

1. delivery of the six bottles of wine

2. payment of the full purchase price

3. conclusion of the contract of sale

4. payment of the full purchase price after delivery of the six bottles of wine.

19.

What is the position if 4 of the 6 bottles of wine referred to in (18)

above are broken in a car accident caused by another motorist,

on the road to JHB.

1. J & P are released from their respective obligations.

2. J is obliged to pay the full Purchase Price, even though she will receive only 2 bottles.

3. J can claim a reduction in the purchase price.

4. P is obliged to replace the 4 bottles that are broken

20.

T sells R her old Washing machine for r 1000 on 1 March. They

agree that delivery will take place on 3 March, because T must

collect the washing machine from her cousin. T collects it on 2

March. She leaves the machine in her garden, from where it is

stolen that night.

Which of the following statements is correct?

1. T must bear the loss (reverted, did not preserve merx)

2. R must bear the loss

3. No contract came into existence, because T is unable to deliver the Machine

4. R must still pay the Purchase price to T , because she should have collected the washing machine from her.

21.

A selects and buys 20 PC’s from PC CO on Friday. He arranges

to pick up the PC’s on Monday. The computers A chooses are set

aside in a store-room. A and PC Co agree that the price is R 60

000. During the weekend, an electrical fault causes a fire in the

store room in which the PC’s are kept. They are completely

destroyed.

Which one of the following statements is correct?

1. All contractual obligations are terminated because of supervening impossibility of performance.

2. PC Co has committed a breach of contract in the form of Mora Debitoris.

3. A will still have tp perform ito the contract, but he is not entitled to receive new computers.

4. PC Co is obliged to replace the destroyed computers with another 20 computers.

Q 22

Consider the following requirements:

1. Agreement on Purchase price

2. Agreement regarding a warrenty against latent defects

3. Agreement regarding the merx

4. Agreement that the merx be delivered

Which of the above are the essential characteristics of a contract of sale?

1. B & C

2. A & C

3. A & D

4. B & D

Q 23

M wants to buy 20 bags of flour from S Mills.

Which one of the following will not qualify as an acceptable purchase price?

1. 200 loaves of bread

2. R 4 000

3. An amount determined by Luke, a financial advisor.

4. R 25 per bag of flour.

Q 24

Q 25

Rebecca goes to Bakone Cafe to buy a tin of fish. After taking the money, Wilfred, the shop owner, takes the fish from the-shelf behind him and gives it to Rebecca.

Which one of the following forms of delivery has taken place?

1. delivery with the short hand

2. delivery with the long hand

3. symbolic delivery

4. actual delivery

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Q26

Which ONE of the following statements is correct?

1. Movables are transferred by way of registration in the name of the purchaser at the deeds office.

2. The risk of accidental damage to the merx passes from the seller to the purchaser after the purchaser has become the owner

3. A Purchaser who wants to institute a claim because of a latent defect in the merx must prove that he or she was unaware of the defect when the contract was concluded.

4. The seller can transfer ownership of the merx to the purchaser even if he or she is not the owner of the merx.

Q27

Johan steals a car from Benny He then sell it to Brian for R.50 000 because it has engine problem? He does not disclose the problems to Brian. A month later. Benny claims the car from Brian. Brian is unhappy about Benny's claim and warns to claim the purchase price back from Johan.

On which ONE of the following grounds should Brian rely in order to succeed with the actio empti against Johan?

1. defective performance

2. misrepresentation

3. manufacturer's liability

4. Breach of warranty against eviction

Q 28

Abner rebuilds a Mini motorcar. Due to the difficulty in obtaining a fanbelt for the car he uses a nylon stocking instead. He then sells it “as IS” (Voetstoots) to Sarel, a student, with no knowledge of cars. On Sarel’s way home the stocking melts and the resultant over-heating causes severe damage to the engine.

Which of the following statements is CORRECT?

1. Sarel has a claim against Abner. because an implied warranty against latent defects is read into every contract of sale, notwithstanding the inclusion of an “as is” (voetstoots) clause.

2. Sarel has a claim against A because A knew about the defect, and is therefore not able to rely on the “as is” Voetstoots clause

3. Sarel has no claim against A because the warrenty against latent defects was excluded by stating that the Mini is sold “as is” (voetstoots)

4. Sarel has no claim against A, because A’s concealment of the use of the nylon stocking does not amount to misrepresentation.

Q29

Thembi borrows a Commercial Law textbook from her roommate Grace. Thembi use this book to prepare for her examination. After Thembi has passed all her first year subjects, she decides to sell her textbooks.

She sells the commercial Law textbook to Albert for R 10.

Which ONE of the following statements is CORRECT?

1. A valid contract of sale was concluded between Thembi and Albert, but ownership did not pass to Albert

2. A valid contract of sale was concluded between Thembi, and Albert, and ownership passed to Albert

3. No valid contract of sale was concluded Between T & A since T was not the owner of the textbook.

4. A will be able to rely on the warranty against latent defects should Grace claim the book from him.

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