Contracts Against Good Morals Quiz
40 Questions
3 Views

Contracts Against Good Morals Quiz

Created by
@RobustHelium

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

In the case of Khan v Naidoo, what was the appellant's mistake related to?

  • She thought she was agreeing to a different contract. (correct)
  • She was misled about her son’s financial stability.
  • She was unaware of her son’s debt.
  • She did not sign the document.

    • A material mistake does not affect the validity of the contract.

    False

    What is the difference between a material mistake and a non-material mistake?

    A material mistake vitiates consensus, while a non-material mistake does not exclude actual agreement.

    A mistake that must relate to or exclude an element of consensus is called a ______ mistake.

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

    What must a mistake influence in order to be relevant to the question of dissensus?

    <p>A party’s decision to conclude the contract</p> Signup and view all the answers

    A mistake of law always vitiates a contract.

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

    Match the following terms with their definitions:

    <p>Material Mistake = Negates actual consensus Non-Material Mistake = Does not exclude actual agreement Mistake of Law = Error relating to legal principles Mistake of Fact = Error regarding factual circumstances</p> Signup and view all the answers

    What may happen if consensus is obtained through improper means despite a non-material mistake?

    <p>The contract may be voidable.</p> Signup and view all the answers

    What is one reason the court deemed the agreement in Maseko v Maseko illegal?

    <p>It was designed to mislead creditors</p> Signup and view all the answers

    Contracts that are void for illegality must always be against public interest.

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

    What did the court hold in Kimberley Share Exchange Co v Hampson regarding a plea of mistake of law?

    <p>It disclosed no legal ground of defence</p> Signup and view all the answers

    Relative or subjective impossibility is enough to render a contract performance impossible.

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

    Name one type of contract that is void for being against good morals.

    <p>Contracts that exploit vulnerabilities or promote fraud.</p> Signup and view all the answers

    What type of impossibility must be present for performance to be deemed impossible?

    <p>Absolute or objective impossibility</p> Signup and view all the answers

    A contract that aims to circumvent the provisions of a statute is said to be in ___.

    <p>fraudem legis</p> Signup and view all the answers

    Match the terms to their definitions:

    <p>Pactum de quota litis = An agreement to share litigation proceeds Champerty = Illegal agreement to fund another's litigation for a share of proceeds Maintenance = Supporting a legal action without having a direct interest Statutory illegality = Circumventing statutory provisions through contracts</p> Signup and view all the answers

    The performance of a contract is practically impossible if retrieving the subject matter incurs an __________ cost in relation to its value.

    <p>utterly disproportionate</p> Signup and view all the answers

    Which of the following best describes 'champerty'?

    <p>An agreement to provide legal funding in exchange for a portion of the damages</p> Signup and view all the answers

    Match the types of impossibility with their definitions:

    <p>Subjective impossibility = A situation where only one party cannot perform Objective impossibility = A situation where nobody can perform the obligation Factual impossibility = A scenario where the subject matter still exists but cannot be retrieved Practical impossibility = A scenario where retrieving the subject matter is economically unfeasible</p> Signup and view all the answers

    In Van Aartsen v Van Aartsen, which type of mistake was considered not to exclude consensus?

    <p>Mistake of law relating to motive</p> Signup and view all the answers

    The court held that the agreement in Maseko v Maseko undermined the institution of marriage.

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

    What does the term 'moral values' refer to in the context of void contracts?

    <p>Principles that determine what is considered right or wrong behavior.</p> Signup and view all the answers

    A mistaken party who is unaware of their right has effectively waived that right.

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

    What is an example of mere subjective impossibility?

    <p>A party agrees to make a payment but does not have the money at the time of agreement.</p> Signup and view all the answers

    What is the term used for when a debtor fails to make timely performance of obligations?

    <p>Mora debitoris</p> Signup and view all the answers

    Positive malperformance means that a debtor has failed to perform their obligations at all.

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

    What is the legal term for a party's right to cancel a contract due to another party’s breach?

    <p>Lex commissoria</p> Signup and view all the answers

    The requirements for exceptio non adimpleti contractus involve the reciprocity of __________.

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

    In which of the following circumstances can a party be said to repudiate a contract?

    <p>Indicating a clear intention not to honor the agreement</p> Signup and view all the answers

    Match the types of breach of contract with their definitions:

    <p>Mora debitoris = Debtor's failure to perform timeously Mora creditoris = Creditor's failure to cooperate for performance Positive malperformance = Defective or incomplete performance Repudiation = Indicating no intention to fulfill the agreement</p> Signup and view all the answers

    What is a distinguishing factor of a reciprocal contract?

    <p>Exchange of performances</p> Signup and view all the answers

    All obligations in a contract are necessarily reciprocal.

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

    What is the principle that governs reciprocal contracts?

    <p>Principle of reciprocity</p> Signup and view all the answers

    A party can claim performance from the other party without performing their own obligation first.

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

    What fundamental right protects consumers against discriminatory marketing?

    <p>the right to equal treatment in the marketplace</p> Signup and view all the answers

    The right to __________ protects consumers from misleading marketing practices.

    <p>fair and honest dealing</p> Signup and view all the answers

    Which of the following is NOT a fundamental consumer right recognized by the Act?

    <p>The right to free items</p> Signup and view all the answers

    Match the following rights to their descriptions:

    <p>Right to disclosure and information = Protection against misleading product descriptions Right to fair value, good quality and safety = Liability for harm caused by defective products Right to choose = Rights to select and return goods Right to privacy = Protection against direct marketing practices</p> Signup and view all the answers

    Consumers have the right to cancel advance bookings without any constraints.

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

    What is the strict regime introduced by the Act related to consumer protection from defective products?

    <p>strict no-fault regime of liability</p> Signup and view all the answers

    Study Notes

    Contracts Against Good Morals

    • A contract may be declared void if it is deemed to be against good morals.
    • Example: A father agreeing to give up custody of his children in exchange for financial compensation.
    • Example: A wife transferring her house to her husband to avoid creditor attachment, with the agreement to retransfer later. This was deemed illegal and immoral as it was intended to mislead creditors about the plaintiff’s worth.
    • This type of contract undermines the institution of marriage and constitutes fraud against the court.

    Illegal Contracts

    • Contracts can be void for illegality due to being against public interest, common law, statute, or contravening moral and constitutional values.

    Specific Examples of Illegal Contracts

    • Contracts Against Good Morals: Already discussed above, a father giving up custody of children in exchange for money, and the wife transferring her house to avoid creditor attachment.
    • Statutory Illegality: Contracts made in fraud of a statute (in fraudem legis) are also illegal and void. This means contracts trying to bypass the provisions of a law prohibiting the act or contract.
    • Pacta De Quota Litis, Champerty, and Maintenance: These involve agreements where one party provides funds for litigation in exchange for a portion of the proceeds if successful. These are generally frowned upon as they can incentivize speculative litigation and abuse of the legal process.

    Material and Non-Material Mistake

    • A material mistake is an error that negates consensus between parties. It vitiates the agreement. For example, if parties agree on a different subject matter or price.
    • A non-material mistake does not affect actual agreement, as it does not relate to an element of consensus. For example, a mistake about the quality of an object, but not the price agreed upon.
    • Non-material mistakes can still lead to a voidable contract if obtained through improper means like misrepresentation, duress, etc.

    Mistake of Law vs. Mistake of Fact

    • The distinction between mistake of law and mistake of fact is not definitively established in case law yet.
    • Some common-law texts state that a plaintiff can’t rely on a mistake of law for an enrichment action; only an error of fact.
    • There are older cases suggesting that a mistake of law indicates a party waived a right, which is invalid if they were unaware of the right.
    • However, more recently, it is held that a mistake of law impacting motive doesn't necessarily mean no consensus exists.

    Impossibility of Contracts

    • Subjective Impossibility: This occurs when a specific party cannot perform, but others might be able to. This is not enough to render a contract impossible.
    • Objective Impossibility: This means nobody can perform the contract. There is absolute impossibility, for example, if the subject matter is destroyed. This makes the contract void.
    • Factual and Practical Impossibility: Sometimes, even if the subject matter exists, performing is factually possible, but practically/economically impossible. For example, a container of plastic ducks falling into the sea, making retrieval too costly to be practical.

    Five Forms of Breach of Contract (plus Lex Commissoria)

    • Mora Debitoris: The debtor fails to perform on time.
    • Mora Creditoris: The creditor fails to cooperate with the debtor to allow timely performance.
    • Positive Malperformance: The debtor performs, but does so defectively or incompletely.
    • Repudiation: One party clearly indicates they will not honor the agreement.
    • Prevention of Performance: One party makes performance impossible.
    • Lex Commissoria: A contractual clause entitling a party to cancel the contract if the other party breaches.

    Exceptio Non Adimpleti Contractus (ENAC)

    • ENAC is a defense allowing a party to withhold their performance if the other party has not yet performed their reciprocal obligation or is not tendering performance.
    • For ENAC, there needs to be reciprocity of obligations – the obligations created in exchange for each other.
    • Determining whether obligations are reciprocal requires interpreting the contract to understand the parties’ intentions.

    Consumer Protection Act (CPA)

    • The CPA recognizes a number of fundamental consumer rights:
      • Right to equal treatment in the marketplace.
      • Right to privacy.
      • Right to choose.
      • Right to disclosure and information.
      • Right to fair and responsible marketing.
      • Right to fair and honest dealing.
      • Right to fair, just, and reasonable terms and conditions.
      • Right to fair value, good quality, and safety.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    LCN301 Exam Notes PDF

    Description

    Explore the nuances of contracts that violate moral standards in this quiz. Learn through specific examples like custody agreements and property transfers intended to deceive creditors. Understand how these illegal contracts can undermine societal values and legal integrity.

    More Like This

    PARTIE II ; TITRE I ; CHAPITRE III : DEVOIR D'INFORMATION
    7 questions

    Quiz Le Devoir : Devoir d'Information Chapitre 3

    RefinedSerendipity avatar
    RefinedSerendipity
    PARTIE III TITRE I CHAPITRE I
    14 questions

    PARTIE III TITRE I CHAPITRE I

    RefinedSerendipity avatar
    RefinedSerendipity
    Droit commun des contrats
    102 questions

    Droit commun des contrats

    FreeLeibniz avatar
    FreeLeibniz
    Contract Law: Good Consideration
    38 questions

    Contract Law: Good Consideration

    AppealingSamarium avatar
    AppealingSamarium
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser