Law of Sale and Contract
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Questions and Answers

What is the fundamental requirement for a sale to exist?

  • Agreement on the ownership of the goods
  • Agreement on the date of delivery of goods
  • Agreement on the price to be paid and the goods to be sold (correct)
  • Agreement on the method of payment

    • What is the requirement for sales of immoveable property under the Alienation of Land Act 61 of 1981?

  • The sale must be registered with the Deeds Office
  • The sale must be in writing (correct)
  • The sale must be verbally agreed upon
  • The sale must be witnessed by a notary public

    • What is implied throughout the National Credit Act 34 of 2005 regarding credit agreements?

  • That all credit agreements must be witnessed by a lawyer
  • That all credit agreements must be in writing (correct)
  • That all credit agreements must be registered with the Credit Bureau
  • That all credit agreements must be verbally agreed upon

    • What is required for the transfer of goods in a sale?

    <p>The buyer must receive free and undisturbed possession of the goods</p> Signup and view all the answers

    What is the fundamental basis of a sale in business?

    <p>The agreement on the goods' identity and essential characteristics</p> Signup and view all the answers

    What is the implication of the seller selling something they do not own?

    <p>The sale is valid but the seller must transfer ownership</p> Signup and view all the answers

    What is the primary focus of the National Credit Act 2005?

    <p>Protecting consumers who buy goods on credit</p> Signup and view all the answers

    What right does the consumer have, according to the Consumer Protection Act 2008?

    <p>The right to assume the supplier is entitled to sell the goods</p> Signup and view all the answers

    What is a key aspect of a consumer transaction under the Consumer Protection Act 2008?

    <p>The transaction must be of the ordinary course of business for consideration</p> Signup and view all the answers

    What is a significant impact of the Consumer Protection Act 2008 on the common law?

    <p>It substantially alters the common law in certain respects</p> Signup and view all the answers

    Study Notes

    Definition of Sale

    • A sale is a contract where the seller transfers a thing (goods) to the buyer in exchange for payment of a price.
    • There must be agreement on two essential elements: the goods to be sold and the price to be paid.

    Essentials of Sale

    • Agreement on the goods means identification of the goods and their essential characteristics.
    • Agreement on the price means payment in money or readily ascertainable in terms of money.

    Formalities of Sale

    • The contract does not have to be in writing, but statutory law requires formalities in certain cases.
    • Examples of formalities:
      • Sales of immovable property (land, houses, flats, farms, etc.) must be in writing under the Alienation of Land Act 61 of 1981.
      • Small credit agreements (loans for less than R15 000) must be in writing and contain certain specified information under the National Credit Act 34 of 2005.

    Transfer of the Thing

    • Parties must agree that the goods will be transferred to the buyer.
    • This means the buyer will receive free and undisturbed possession of the goods.
    • The seller can sell something they do not own, but must agree to transfer ownership to the buyer.

    Consumer Protection Act (CPA)

    • Applies to all consumer transactions in South Africa.
    • Introduces fundamental consumer rights.
    • Substantially alters the common law in certain respects, especially in contract and sale and lease.
    • Important to establish when the common law applies and when the CPA applies.

    National Credit Act (NCA)

    • Applies to credit transactions.
    • Introduces substantial protection for consumers, especially in claiming payment for goods bought on credit.
    • Regulates lending money to consumers who cannot afford the goods (reckless credit and over-indebtedness).
    • Regulates charging interest.

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    Description

    A quiz on the law of sale, understanding the essentials of a sale contract between the seller and buyer, including goods and price.

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