Business Law Unit 1: Introduction

Questions and Answers

Explain the term 'law' and what it entails.

Law is a system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Differentiate between the two types of rules that control how people behave in society. Which options represents these types?

Legal rules (law) (correct)

Moral/ethical rules (correct)

Social rules

Cultural rules

Explain the role of the state in our legal system.

The state is responsible for creating, enforcing, and interpreting laws to maintain order and protect citizens.

Differentiate between the roles of the three arms of government.

The legislature creates laws, the executive enforces laws, and the judiciary interprets laws. Signup and view all the answers

Explain the historical development of the South African Common Law.

South African Common Law has evolved over centuries, influenced by indigenous law, Roman-Dutch law, and English law. Signup and view all the answers

Differentiate between a legal system based on parliamentary sovereignty and one of constitutional supremacy.

Parliamentary sovereignty allows Parliament to make any law, while constitutional supremacy reserves ultimate authority for the Constitution. Signup and view all the answers

Differentiate between the authoritative (primary) sources and persuasive (secondary) sources of South African Law.

Authoritative sources are binding and include statutes and the Constitution, while persuasive sources are non-binding, such as academic writings. Signup and view all the answers

Describe each source of law.

Sources of law include statutes, common law, customs, and judicial precedents. Signup and view all the answers

Explain the difference between civil and criminal cases.

Civil cases involve disputes between individuals or entities, while criminal cases involve actions considered harmful to society. Signup and view all the answers

Who is referred to as the Plaintiff in legal proceedings?

The person suing Signup and view all the answers

Differentiate generally between superior courts and inferior courts.

Inferior courts do not hear appeals Signup and view all the answers

Explain the doctrine of Stare Decisis.

Stare Decisis is the legal principle of determining points in litigation according to precedent. Signup and view all the answers

Explain 'ratio decidendi' as it relates to judicial precedent.

Ratio decidendi is the legal rationale for a court's decision that establishes a precedent. Signup and view all the answers

Differentiate between personal rights and real rights.

Personal rights are rights belonging to individuals, while real rights encompass rights over property. Signup and view all the answers

List and define the legal requirements for a valid contract.

Requirements include consensus, capacity to act, and lawful object. Signup and view all the answers

Explain contractual capacity as a requirement for a valid contract.

Contractual capacity refers to the legal ability of parties to enter into a binding contract. Signup and view all the answers

Differentiate between minors, majors, and juristic persons in respect of their contractual capacity.

Minors have limited capacity, majors have full capacity, and juristic persons can contract through representatives. Signup and view all the answers

Explain the legal position of a person contracting with a minor in terms of Common Law.

Contracts with minors are generally voidable at the minor's discretion. Signup and view all the answers

Explain the legal position of contracting parties in terms of the Consumer Protection Act.

The Act provides protections for consumers, allowing for the cancellation of detrimental contracts. Signup and view all the answers

Differentiate between the contractual capacity of persons married in community of property and those married out of community of property.

Those married in community of property require spousal consent for certain contracts, while those married out do not. Signup and view all the answers

Explain the terms Valid, Void, Voidable, and Unenforceable.

Valid contracts meet all requirements; void contracts have no legal effect; voidable contracts can be enforced at the option of one party; unenforceable contracts cannot be enforced due to legal reasons. Signup and view all the answers

Study Notes

Business Law: An Introduction to the South African Legal System

Law governs behavior through legal rules with obligations and consequences.
Differentiation between legal rules and moral/ethical rules influences societal behavior standards.
The state plays a critical role, ensuring laws are enacted, enforced, and adjudicated.
Three branches of government include the Legislature (makes laws), the Executive (enforces laws), and the Judiciary (interprets laws).

Historical Development of South African Common Law

Prior to 1996, South Africa's legal system operated under a supreme Parliament, allowing enactment of discriminatory laws like the Group Areas Act, 1950.
Parliamentary Sovereignty grants Parliament the authority to create or repeal any laws without oversight from other branches, as seen in the UK and Canada.
The Constitution established as the highest law, rendering any conflict with it invalid; adherence to constitutional mandates is obligatory.
Constitutional supremacy reinforces the "rule of law," ensuring executive and legislative actions align with constitutional values.

South African Court System

Civil cases involve a plaintiff suing a defendant, while criminal cases feature a prosecutor accusing an accused of a crime.
Different court types exist, including superior (e.g., Constitutional Court, Supreme Court of Appeal) and inferior courts (Magistrates Courts).
Doctrine of Stare Decisis obliges courts to follow established precedents, preserving consistency in judicial decisions.
Ratio Decidendi refers to the legal principle or rule derived from a case, while Obiter Dictum includes additional comments that do not form the central reasoning of the judgment.

Branches of Law and Interpretation of Statutes

Branches of law encompass International Law, Foreign Law, and South African National Law, each serving distinct legal functions.
South African National Law divides into Public Law, regulating relationships between the state and individuals, and Private Law, governing relationships among individuals.
Trial and application procedures represent primary forms of civil procedure in legal contexts.

Statutory Interpretation

Several theories of statutory interpretation exist:
- Literal approach focuses on the straightforward meaning of words.
- Purposive approach considers the law's intended purpose.
- Functional approach analyzes law within its social context.
- Historic approach examines the statute's historical background.
The Constitution significantly influences statutory interpretation, emphasizing rights and justice in application.

General Principles of the Law of Obligations

A contract requires consensus and capacity to act from involved parties for legitimacy.
Contracts can be classified as valid, void (invalid from inception), voidable (valid until annulled), or unenforceable (not legally binding due to legal restrictions).
Personal rights, inherent to individuals, include rights such as life and freedom, contrasted with real rights that pertain to ownership.

Legal Capacity and Contractual Obligations

Legal capacity is influenced by age, with individuals under 7 deemed incapable, those aged 7 to 18 possessing limited capacity, and adults considered fully capable provided they are of sound mind.
The Consumer Protection Act (CPA) protects consumers' interests, indicating specific conditions under which contracts may be voidable.
Understanding the implications of contracting with minors under common law is essential, including factors like misrepresentation and duress which can affect the validity of agreements.

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Description

This quiz covers the foundational concepts of Business Law as it relates to the South African legal system. Explore the roles of government, the historical development of common law, and the explanation of legal rules. Test your knowledge on essential principles that form the backbone of legal understanding in South Africa.