Contract Law Quiz
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Questions and Answers

Which statement accurately describes the difference between legislation and custom?

  • Legislation is unwritten, while custom is formal and written.
  • Both legislation and custom are written laws.
  • Custom is enforced by government, while legislation is not.
  • Legislation is created by a legislative body, whereas custom is based on tradition. (correct)

A magistrate has the authority to interpret and apply the law in the same manner as a judge.

False (B)

What is the primary aim of criminal proceedings?

To punish the offender and protect society.

Legislation is a formal set of rules created by a __________.

<p>legislative body</p> Signup and view all the answers

Match the following terms to their correct descriptions:

<p>Legislation = Formal laws created by a legislative body Custom = Unwritten rules based on tradition Judge = Presides over a court of law Magistrate = Handles minor offenses and preliminary hearings</p> Signup and view all the answers

Which of the following is NOT an essential element of a sale agreement?

<p>Witness Signatures (A)</p> Signup and view all the answers

Capacity refers to the requirement that both parties must be of legal age and sound mind to enter into a contract.

<p>True (A)</p> Signup and view all the answers

What is meant by 'Consideration' in a sale agreement?

<p>The exchange of value, typically money for goods or services.</p> Signup and view all the answers

For a sale agreement to be valid, the subject matter must be ________ and not violate any laws or public policy.

<p>legal</p> Signup and view all the answers

Match the following elements of a sale agreement with their descriptions:

<p>Offer and Acceptance = Clear agreement between parties Consideration = Exchange of value Capacity = Legally competent individuals Legality = Adherence to laws and public policy</p> Signup and view all the answers

Which of the following is NOT a requirement for a valid contract?

<p>Secrecy of Terms (B)</p> Signup and view all the answers

A contract can be valid even if one party is intoxicated at the time of signing.

<p>False (B)</p> Signup and view all the answers

What term describes the exchange of value in a contract?

<p>Consideration</p> Signup and view all the answers

For a contract to be legal, its purpose must not violate any _____ or public policies.

<p>laws</p> Signup and view all the answers

Match the following contract requirements with their descriptions:

<p>Offer and Acceptance = Mutual agreement between parties Capacity to Contract = Legal ability to enter a contract Lawful Purpose = Contract must comply with laws Consideration = Exchange of value or promise</p> Signup and view all the answers

What is the primary goal of an appeal?

<p>To review and challenge a lower court's decision (C)</p> Signup and view all the answers

Obiter dictum is a binding precedent on future courts.

<p>False (B)</p> Signup and view all the answers

What does ratio decidendi refer to in a court ruling?

<p>The legal principle or rule that forms the basis of a court's decision.</p> Signup and view all the answers

A _____ is a process where a higher court examines a lower court's ruling.

<p>appeal</p> Signup and view all the answers

Which of the following describes a void contract?

<p>A contract that cannot be enforced by either party. (A)</p> Signup and view all the answers

A valid contract must include all essential elements to be legally binding.

<p>True (A)</p> Signup and view all the answers

What are four sources of authority in an agency relationship?

<p>Express authority, implied authority, apparent authority, and statutory authority.</p> Signup and view all the answers

A __________ contract may be enforced unless one party chooses to void it based on certain conditions.

<p>voidable</p> Signup and view all the answers

Match the following elements to their description:

<p>Offer = Proposal made by one party to another Acceptance = Agreement to the terms of the offer Consideration = Something of value exchanged between parties Contractual capacity = The legal ability to enter into a contract</p> Signup and view all the answers

All agreements made between parties automatically create a legal contract.

<p>False (B)</p> Signup and view all the answers

What is meant by 'Capacity to Contract'?

<p>The legal ability of parties to enter into a contract, including being of sound mind and legal age.</p> Signup and view all the answers

For a contract to be valid, all parties must intend to create _____ relations.

<p>legal</p> Signup and view all the answers

Match the elements of a valid contract with their descriptions:

<p>Offer and Acceptance = Clear mutual agreement between parties Intent to Create Legal Relations = Parties intend for the agreement to have legal implications Capacity to Contract = Parties have the legal ability to enter into an agreement Lawful Purpose = The contract is for a legal aim and not illegal activities</p> Signup and view all the answers

Which type of authority is based on a third party's belief that the agent has authority?

<p>Apparent Authority (B)</p> Signup and view all the answers

Inherent authority requires explicit permission from the principal.

<p>False (B)</p> Signup and view all the answers

What is the process called when a principal approves an action taken by an agent without explicit authority?

<p>Ratification</p> Signup and view all the answers

Apparent authority is based on the principal's actions or representations that lead a _______ to reasonably believe the agent has authority.

<p>third party</p> Signup and view all the answers

Match the following sources of authority with their descriptions:

<p>Actual Authority = Express or implied authority given by the principal Apparent Authority = Authority a third party believes the agent has based on principal's representations Inherent Authority = Authority inherent in the agent's position Ratification = Approval of an action taken by an agent without explicit authority</p> Signup and view all the answers

What type of contract is considered invalid from the beginning due to its illegal nature?

<p>Void Contract (B)</p> Signup and view all the answers

A voidable contract can be enforced unless one party chooses to cancel it.

<p>True (A)</p> Signup and view all the answers

Give an example of a valid contract.

<p>A contract for the purchase of a car between two parties of legal age agreeing on terms.</p> Signup and view all the answers

A contract that is initially valid but can be set aside due to issues like fraud is called a __________ contract.

<p>voidable</p> Signup and view all the answers

Match the following types of contracts with their descriptions:

<p>Valid Contract = Legally binding agreement with enforceable terms Void Contract = Agreement that is invalid from the beginning Voidable Contract = Initial valid contract that can be canceled Illegal Contract = Contract for a purpose that violates the law</p> Signup and view all the answers

Which of the following is NOT considered a source of South African law?

<p>Popular Opinion (C)</p> Signup and view all the answers

The Constitution of South Africa is subordinate to legislation.

<p>False (B)</p> Signup and view all the answers

What type of law develops through judicial decisions and precedents in South Africa?

<p>Common Law</p> Signup and view all the answers

Customary law is based on __________ customs and traditions.

<p>indigenous</p> Signup and view all the answers

Match the following sources of South African law with their descriptions:

<p>Legislation = Acts of Parliament and regulations Common Law = Judge-made law and precedents Customary Law = Law based on traditions Constitution = The supreme law governing all other laws</p> Signup and view all the answers

Flashcards

Legislation

Formal laws made by a legislative body.

Custom

Unwritten, traditional rules widely accepted.

Judge

Chief judicial officer in a court.

Magistrate

Judicial officer with limited legal power.

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Civil Proceedings

Legal actions between individuals or firms.

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Offer and Acceptance

Both parties agree on the terms of the sale, with the offer matching the acceptance exactly.

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Consideration

A price is given for the product or service.

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Legal Capacity

Both buyers and sellers must be of legal age and have a sound mind to enter a contract.

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Lawful Subject Matter

The item or service being sold must be legal to sell.

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Valid Contract Elements

A sale agreement needs a clear offer and acceptance, consideration, legal subject and capacity and legality of the agreement.

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Capacity to Contract

Both parties must be legally able to understand and agree to the contract's terms.

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Lawful Purpose

The agreement's goals and its details must be legal and not violate any laws.

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Appeal

A process where a higher court reviews a lower court's decision to see if it was correct.

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Review

A broad term for examining something, including laws to see if they are legal.

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Ratio decidendi

The legal principle a court uses to justify its decision.

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Obiter dictum

A statement by a judge that's not essential to the decision but offers opinions.

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What's the difference between Appeal and Review?

Appeal is specifically challenging a lower court's decision, while review is broader and can be used for examining anything, including laws.

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Intent to Create Legal Relations

The parties must intend for the agreement to have legal consequences, making it legally binding.

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What makes a contract valid?

A valid contract needs a clear offer and acceptance, the intent of both parties to be legally bound, the parties' ability to legally contract, and a lawful purpose for the agreement.

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Valid Contract

A legally binding agreement that meets all requirements for enforceability in court.

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Void Contract

A contract that is invalid from the beginning because it's missing essential elements or is illegal.

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Voidable Contract

A contract that is initially valid but can be canceled by one or both parties due to issues like fraud or duress.

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What makes a contract voidable?

A contract is voidable if it was entered into under duress, fraud, or undue influence.

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Legislation vs. Custom

Legislation refers to written laws made by a legislative body, while custom encompasses traditional, unwritten rules widely accepted within a community. Legislation provides formal, codified rules, whereas custom relies on long-standing practices and social norms.

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Judge vs. Magistrate

A judge presides over a court of law with extensive legal authority, overseeing complex cases. A magistrate, on the other hand, is a judicial officer with limited legal power, primarily handling minor cases and preliminary hearings.

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Actual Authority

The power an agent has because the principal explicitly granted it, either through words or actions.

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Apparent Authority

The power a third party reasonably believes an agent has, based on the principal's actions or statements, even if the agent doesn't actually have it.

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Inherent Authority

The power an agent has simply because of their job position, even if the principal hasn't directly granted it.

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Ratification

When a principal approves an agent's action after the fact, even though the agent didn't have the authority at the time.

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What are the 4 sources of authority in an agency relationship?

The four sources of authority in an agency relationship are Actual Authority, Apparent Authority, Inherent Authority, and Ratification.

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What are the main sources of SA law?

South African law comes from four key sources: Legislation (laws made by Parliament), Common Law (judge-made law), Customary Law (based on local traditions), and the Constitution (the supreme law of the country).

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Common Law

Law built by judges through court decisions and precedents, based on Roman-Dutch, English, and customary law.

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Customary Law

Law built on the customs and traditions of indigenous communities, applied in areas like family law and traditional leadership disputes.

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Constitution

South Africa's supreme law, outlining fundamental rights, the structure of government, and guiding principles for legislation. Any law conflicting with the Constitution is deemed invalid.

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Study Notes

Legislation vs Custom

  • Legislation refers to laws created by a legislative body, like a parliament or congress. It's formal, written set of rules.
  • Custom refers to unwritten rules that have been followed for a long time and are accepted as binding. It's based on tradition and practice.

Judge vs Magistrate

  • Judge is a judicial officer who presides over a court of law. They have the authority to interpret and apply the law.
  • Magistrate is a judicial officer with limited jurisdiction. Often handling minor offenses or preliminary hearings. They are typically appointed by the government.

Civil Proceedings vs Criminal Proceedings

  • Civil Proceedings are legal actions between private parties, like individuals or corporations. They usually involve disputes over contracts, property or personal injury.
  • Criminal Proceedings are legal actions brought by the state against individuals accused of committing crimes. They aim to punish the offender and protect society.

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Description

Test your knowledge on the fundamentals of contract law, including differences between legislation and custom, the essential elements of a sale agreement, and the concept of consideration. This quiz covers key principles that underpin valid contracts and their requirements.

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