Business Law and Government Structure

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Questions and Answers

What is the primary function of superior courts within the court hierarchy?

To create judicial precedent that lower courts must follow (correct)

To handle constitutional matters exclusively

To review decisions made by Magistrates’ Courts

To interpret local laws within their jurisdiction

Which statement about the jurisdiction of High Courts is correct?

High Courts can sentence convicts to various punishments, including life imprisonment. (correct)

High Courts are bound to follow the decisions of inferior courts in their province.

High Courts have jurisdiction to hear cases from multiple provinces.

High Courts can only hear civil matters with a monetary claim exceeding a specific limit.

What must a Magistrates’ Court do when faced with a decision from a higher court?

They can ignore the higher court's decision if they disagree.

They may choose to set their own decision based on local laws.

They have the authority to create their own judicial precedents.

They must follow the precedent set by that higher court. (correct)

In what circumstances can a Magistrates’ Court decide a case differently from a previous one?

If there is no existing precedent from higher courts. Signup and view all the answers

What determines the influence of a High Court when setting a judicial precedent?

The number of judges involved in the case. Signup and view all the answers

In the context of contract law, what happens when the party who causes impossibility is identified?

They are in breach of contract and may be liable for damages. Signup and view all the answers

What happens to a contract that is prohibited by statute?

It is void and cannot be enforced. Signup and view all the answers

Which of the following terms refers to those that are implied into a specific contract?

Naturalia Signup and view all the answers

Under which principle can a party not recover performance in the case of an illegal contract?

Ex turpi causa Signup and view all the answers

What term describes those contract terms that are specifically articulated by the contracting parties?

Express terms Signup and view all the answers

Which of the following best defines essentialia in contracts?

Terms that identify a contract as a specific type. Signup and view all the answers

What does the term 'incidentalia' refer to in the context of contracts?

Discretionary terms agreed upon by the parties. Signup and view all the answers

What characterizes tacit terms in contracts?

Terms understood based on conduct and circumstance. Signup and view all the answers

What is a suspensive condition in a contract?

A condition that delays the operation until fulfilled. Signup and view all the answers

Which type of clause specifies when contract duties begin based on a certain occurrence?

Suspensive time clauses Signup and view all the answers

What does a cancellation clause in a contract provide?

Empowers a harmed party to cancel under specified conditions. Signup and view all the answers

Which of the following is NOT a characteristic of resolutive conditions?

They cause the contract to continue indefinitely. Signup and view all the answers

What differentiates time clauses from conditions in contracts?

Time clauses specify certain occurrences. Signup and view all the answers

What aspect of suppositions is unique relative to conditions and time clauses?

They only apply if present circumstances exist. Signup and view all the answers

Which is a true statement about terms imposed by law in contracts?

They require specific terms to be included. Signup and view all the answers

Which clause is NOT related to determining the start or end of a contract?

Imposed term Signup and view all the answers

What defines a warranty in a contract?

A binding obligation related to quality or quantity aspects Signup and view all the answers

What is the key distinction between exclusion clauses and exemption clauses?

Exclusion clauses limit liability under delict law, while exemption clauses limit liability in specific situations Signup and view all the answers

What is the purpose of penalty clauses in contractual agreements?

To ensure parties pay damages in case of breach Signup and view all the answers

How do modus clauses differ from conditions in contracts?

Modus clauses are independent of the contract's operation, while conditions are not Signup and view all the answers

What is a characteristic of entrenchment clauses?

They prevent changes unless written and signed by both parties Signup and view all the answers

What does a jurisdiction clause determine?

It outlines the agreed court for dispute resolution Signup and view all the answers

In the context of dispute resolution, what is an arbitration clause intended for?

To avoid court proceedings by using alternative dispute resolution Signup and view all the answers

Which statement about warranties is accurate?

They can be both express and tacit, imposed by law in certain contexts Signup and view all the answers

What function does a penalty clause serve in a contract?

To provide a punishment for failing to adhere to obligations Signup and view all the answers

Study Notes

Business Law Notes

Business law is a set of rules created by the state to regulate societal behavior, fostering order.
Laws define permissible, prohibited, and obligatory actions for individuals.
Legal rules govern everyone in a society. Breaking the law can result in penalties.
Ethical and moral rules, subjective standards based on personal beliefs, often religious, differ from legal rules.

Three Arms of Government

The legislature (Parliament) makes the country's laws and holds the executive accountable.
The executive (Cabinet) governs, proposes laws, and implements policies. It consists of the president, deputy president, and ministers.
The judiciary (Courts) upholds the law, tries cases, and administers justice.

Legal Subjects

Natural persons are human beings with rights and duties.
Juristic persons are artificial entities (companies, municipalities), holding legal rights and duties.
Companies have a separate legal existence from their directors and members.

Sources of South African Law

Legislation (statutes) is the most important source.
The Constitution is supreme and overrides other legislation.
Case law (judicial precedent) clarifies legal principles and fills gaps.
Customary law is traditional, often unwritten, but less influential.
Judicial precedent emphasizes consistent application of legal principles.
Laws from other countries may be considered.
International laws, treaties, and agreements form another legal source.

Superior and Inferior Courts

Superior courts (Constitutional Court, Supreme Court of Appeal, High Courts) handle major cases and set legal precedents.
Inferior courts (Magistrates' Courts, Chiefs' Courts, Small Claims Courts) handle less serious cases. They must follow precedents set by higher courts.

Civil and Criminal Cases

Civil cases are disputes between individuals, determining liability.
Criminal cases are actions against the state, determining guilt.

Contractual Capacity

A minor (under 18) has limited capacity, requiring a guardian for certain contracts.
Emancipated/married minors typically have full capacity.
Different rules apply for people below the age of 7.

Valid Contract Requirements

Agreement: Parties agree on terms.
Capacity: Parties have the legal ability to contract.
Certainty: Terms are clear and unambiguous.
Legality: Contract cannot require illegal acts.
Possibility: Contract terms must be achievable.
Formalities: Some contracts require specific formats (e.g., in writing, registered).

Void and Voidable Contracts

Void contracts lack essential elements, as if they never existed.
Voidable contracts are valid until one party chooses to terminate them. This occurs typically due to misrepresentation, duress, undue influence, and mistake.
Remedies available for breach include specific performance, rescission, and damages.

Offer and Acceptance

A valid offer must be complete and clear, with a serious intention to create a binding agreement.
Acceptance by the offeree must clearly demonstrate an intent to be bound by the terms of the offer.

Contracts of Sale (Essentialia and Naturalia)

A contract of sale involves agreement on a price and the item.
Duties for sellers: ensuring the goods are delivered, availability, warranty against hidden defects, and no false statements.
Duties for buyers: paying the purchase price, accepting the delivery, and compensating for expenses.
Warranties and eviction rights are crucial contract aspects.

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Description

Explore the fundamental concepts of business law and the structure of government. This quiz covers the definition of laws, the roles of the three arms of government, and the distinction between natural and juristic persons. Test your knowledge on the legal frameworks that regulate societal behavior.