Podcast
Questions and Answers
What must the buyer pay if they occupy the property before registration?
What must the buyer pay if they occupy the property before registration?
- Occupational rent (correct)
- Maintenance costs
- VAT
- Transfer duty
In a sale of immovable property, who is responsible for paying VAT?
In a sale of immovable property, who is responsible for paying VAT?
- The government
- Both the buyer and the seller equally
- The buyer
- The seller (correct)
What right allows someone to purchase property before it is sold to another party?
What right allows someone to purchase property before it is sold to another party?
- Pre-emptive right (correct)
- Option to purchase
- Exclusive offer
- Right of first sale
What must happen for the pre-emptive right to come into effect?
What must happen for the pre-emptive right to come into effect?
What happens if the buyer fails to collect the object?
What happens if the buyer fails to collect the object?
What is an option in the context of property contracts?
What is an option in the context of property contracts?
What must the buyer deliver to the seller regarding benefits accrued before the contract became effective?
What must the buyer deliver to the seller regarding benefits accrued before the contract became effective?
Which of the following statements about the option is true?
Which of the following statements about the option is true?
What happens if the option contract is exercised?
What happens if the option contract is exercised?
Which statement about pre-emptive rights and options is true?
Which statement about pre-emptive rights and options is true?
What is required for a valid sale of immovables under the Alienation of Land Act?
What is required for a valid sale of immovables under the Alienation of Land Act?
Under which section of the Consumer Protection Act do consumers have remedies like return, replace, or refund?
Under which section of the Consumer Protection Act do consumers have remedies like return, replace, or refund?
What can C do if a defect in the printer is discovered after purchase under the applicable Consumer Protection Act?
What can C do if a defect in the printer is discovered after purchase under the applicable Consumer Protection Act?
If Monya sold her house with a known defect, what legal implications may arise?
If Monya sold her house with a known defect, what legal implications may arise?
What is a consequence of not exercising the option contract?
What is a consequence of not exercising the option contract?
What distinguishes the formalities of option contracts in relation to main contracts?
What distinguishes the formalities of option contracts in relation to main contracts?
What section of the CPA does not provide a blanket exclusion of Monya's liability?
What section of the CPA does not provide a blanket exclusion of Monya's liability?
What must the house comply with according to the CPA?
What must the house comply with according to the CPA?
What is the timeframe within which Refilwe can institute remedies against Monya for breach of quality standards?
What is the timeframe within which Refilwe can institute remedies against Monya for breach of quality standards?
What remedies can Refilwe rely on if the house does not comply with quality standards?
What remedies can Refilwe rely on if the house does not comply with quality standards?
What was the primary issue with the house that Monya failed to disclose properly?
What was the primary issue with the house that Monya failed to disclose properly?
What stipulation did Monya include in the deed of sale to reassure Refilwe?
What stipulation did Monya include in the deed of sale to reassure Refilwe?
What clause in the deed of sale excluded Monya's liability for latent defects?
What clause in the deed of sale excluded Monya's liability for latent defects?
What was the reason for Refilwe's dissatisfaction after the sale?
What was the reason for Refilwe's dissatisfaction after the sale?
How many times can the actio quanti minoris be claimed?
How many times can the actio quanti minoris be claimed?
What type of defect is the hairline crack in the engine considered to be?
What type of defect is the hairline crack in the engine considered to be?
What can Elsa claim if she returns the Merx?
What can Elsa claim if she returns the Merx?
Which stipulation surrounds the actio redhibitoria?
Which stipulation surrounds the actio redhibitoria?
What was the primary consequence Elsa faced after driving the Merx?
What was the primary consequence Elsa faced after driving the Merx?
What is a key legal principle regarding latent defects?
What is a key legal principle regarding latent defects?
What was Busi's main argument in response to Elsa's claims?
What was Busi's main argument in response to Elsa's claims?
What type of compensation does Elsa seek from Busi due to her injuries?
What type of compensation does Elsa seek from Busi due to her injuries?
Which parties are still subject to Sections 60 and 61 of the CPA for transactions exempt from the Consumer Protection Act in South Africa?
Which parties are still subject to Sections 60 and 61 of the CPA for transactions exempt from the Consumer Protection Act in South Africa?
What is the general rule regarding claims based on the warranty of latent defects when a voetstoots clause is included in a sale?
What is the general rule regarding claims based on the warranty of latent defects when a voetstoots clause is included in a sale?
Under what condition can a seller be held liable for a latent defect despite a voetstoots clause?
Under what condition can a seller be held liable for a latent defect despite a voetstoots clause?
How does the test from Waller v Pienaar determine the duty to disclose latent defects?
How does the test from Waller v Pienaar determine the duty to disclose latent defects?
What burden does Busi have if she was aware of the crack before selling the Merx?
What burden does Busi have if she was aware of the crack before selling the Merx?
What assumption can be made if the buyer could not have reasonably discovered the latent defect before the sale?
What assumption can be made if the buyer could not have reasonably discovered the latent defect before the sale?
Which of the following is NOT a situation where a seller could be liable despite a voetstoots clause?
Which of the following is NOT a situation where a seller could be liable despite a voetstoots clause?
What was the nature of the advice given to Busi regarding the crack in the Merx?
What was the nature of the advice given to Busi regarding the crack in the Merx?
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Study Notes
Seller’s Rights
- If the buyer fails to collect the purchased item, the seller can claim expenses incurred for the item’s protection and upkeep.
Buyer’s Responsibilities in Immovable Property Sales
- Buyer pays transfer costs and transfer duty.
- Buyer pays occupational rent to seller if they occupied the property before registration.
- Buyer delivers any benefits accrued to the property before the contract becomes effective to the seller, unless otherwise agreed.
Pre-emptive Right
- A pre-emptive right allows the holder to purchase property before the owner sells it.
- The holder can either make an offer to the seller first or receive an exclusive offer from the seller.
- It only comes into effect when the owner decides to sell; prior to this, the holder can’t make or receive offers.
Option
- An option allows the holder the right to accept an offer to buy or sell for a specified time.
- During this period, the offer cannot be withdrawn or offered to anyone else.
- If exercised, a second contract is created, and the grantor must adhere to its terms.
- If not exercised, the option contract and its associated offer terminate.
Formalities for Pre-emptive Rights and Options: Movables
- No formalities are required unless explicitly specified by law or agreement.
- Option contracts do not need to comply with formalities for the main contract.
Formalities for Pre-emptive Rights and Options: Immovables
- The Alienation of Land Act 68 of 1981 requires writing and signature for a valid immovable property sale.
- The applicability of these formalities to pre-emptive rights and options for immovables is debated.
Section 56 of the CPA
- The Consumer Protection Act provides the following remedies for defective goods within 2 months:
- Return
- Replace
- Refund
Section 55 of the CPA
- Goods must comply with standards of quality.
- If they don't, the buyer has remedies in Section 56 within 6 months of contract conclusion.
Common Law Remedies
- In addition to remedies in Section 56, the buyer may also rely on common law remedies.
Voetstoots Clause
- This clause excludes liability for latent defects.
Actio Redhibitoria
- Allows the buyer to rescind the contract and return the defective goods.
- Can only be claimed once.
Actio Quanti Minoris
- Allows the buyer to claim a reduction in the purchase price based on the defect.
- Can be claimed multiple times.
Latent Defects
- A defect that was not apparent and could not be reasonably discovered by the buyer.
- The seller may be held liable for latent defects if they knowingly concealed them.
Duty to Disclose
- No general duty to disclose latent defects unless the seller’s actions are fraudulent.
- The buyer must prove they could not have reasonably discovered the defect on their own.
CPA Exemptions
- Even if a transaction is exempt from the CPA, the importer, producer, distributor, and retailer are still subject to Sections 60 and 61 of the CPA.
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