South African Contract Law Quiz

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Questions and Answers

What condition must be met for a creditor to be considered at fault for a delayed performance by the debtor?

The debtor must be unable to perform any obligations.

The creditor must have initiated the contract.

The debtor must not have any financial resources.

The time for the debtor to perform must have arrived. (correct)

When is a court likely to deny an order for specific performance?

When the performance is legally ambiguous.

When the debtor has completed part of the performance.

When the performance does not align with contractual terms.

When the performance will cause excessive suffering. (correct)

Which of the following is NOT a type of remedy for breach of contract?

Specific performance order

Escalation of contracts (correct)

Rescission of contract

Interdict

What is an interdict in the context of breach remedies?

A court order preventing specific actions. Signup and view all the answers

What must be followed if any source of law conflicts with the Constitution?

The Constitution's provisions must be followed. Signup and view all the answers

Which scenario would lead a court to likely grant a remedy for rescission of the contract?

The creditor has materially breached their obligations. Signup and view all the answers

Which entity is considered the second arm of government responsible for governance and policy development?

The Cabinet/Executive Signup and view all the answers

What distinguishes natural persons from juristic persons?

Natural persons are human beings, while juristic persons are entities like companies. Signup and view all the answers

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

Social Norms Signup and view all the answers

How can South African common law develop?

Through court decisions and contributions from various cultures. Signup and view all the answers

In the context of law, which of the following best describes customary law?

Law derived from long-established practices and traditions. Signup and view all the answers

What is required for legislation to be legally binding?

Following proper law-making procedures. Signup and view all the answers

What is the primary function of case law in the legal system?

To serve as judicial precedent Signup and view all the answers

Which of the following correctly describes the principle of stare decisis?

Similar cases should be decided similarly for fairness. Signup and view all the answers

What must be proven for a custom to qualify as law under customary law?

It must be immemorial and reasonable without exceptions. Signup and view all the answers

What role do decisions made in superior courts play regarding common law?

They can adapt, remove, or develop common law. Signup and view all the answers

What is considered as persuasive authority in legal writings?

Writings from academics and lawyers Signup and view all the answers

Which statement about customary law is correct?

It requires proof of immemorial and reasonable practices. Signup and view all the answers

How does a court address a problem not covered by existing law?

By referencing foreign legal systems. Signup and view all the answers

What happens to judicial decisions from higher courts in South African law?

They become binding on lower courts in future cases. Signup and view all the answers

In what way can the legislature alter common law?

By passing new legislation. Signup and view all the answers

What is the primary function of the Supreme Court of Appeal in South Africa?

To hear non-constitutional civil or criminal appeals Signup and view all the answers

Which of the following courts is specifically designed to handle specialized types of cases?

Special Courts Signup and view all the answers

What does the term 'ratio decidendi' refer to in a court judgement?

The legal principle established by the decision Signup and view all the answers

What is one limitation of the Supreme Court of Appeal regarding constitutional matters?

It cannot create judicial precedent for constitutional issues Signup and view all the answers

Which of the following best describes the primary role of the Constitutional Court?

To uphold the Constitution as the highest law Signup and view all the answers

How many judges, including the Chief Justice, sit in the Constitutional Court?

11 Signup and view all the answers

Which type of law governs the relationship between the government and its citizens?

Public law Signup and view all the answers

Which of the following is NOT a type of special court mentioned?

Criminal Court Signup and view all the answers

What happens when a lawyer finds an earlier case that supports their client's argument?

It acts as judicial precedent for their arguments Signup and view all the answers

Which characteristic is true of the relationship between special courts and high courts?

Both are at the same level in the court hierarchy Signup and view all the answers

What is the primary characteristic of a marriage in community of property in South Africa?

Spouses have joint and several liability for all debts. Signup and view all the answers

Which of the following contracts requires consent from both spouses when married in community of property?

The sale of immovable property. Signup and view all the answers

When a couple marries out of community of property, which of the following statements is true?

They can own property independently. Signup and view all the answers

What must be done to make an antenuptial contract valid when marrying out of community of property?

It must be notarized and registered within three months. Signup and view all the answers

Which type of antenuptial contract allows for asset sharing only upon the dissolution of marriage?

Antenuptial contract with accrual. Signup and view all the answers

What is one consequence of a person entering into a contract while excessively drunk?

They are not bound by the terms of the contract. Signup and view all the answers

What is one characteristic of a marriage out of community of property with accrual?

Only pre-marital assets remain independent. Signup and view all the answers

Which statement accurately describes liability in a marriage in community of property?

Both spouses can independently be held liable for the full amount. Signup and view all the answers

In a marriage out of community of property without accrual, what happens to the assets acquired during the marriage?

They remain separately owned by each spouse. Signup and view all the answers

What is required for the validity of a contract involving the sale of immovable property when married in community of property?

Both spouses must sign the sale agreement. Signup and view all the answers

Study Notes

Business Law Notes

Business law is a set of rules made by the state to order the way people in society behave.
It's part of a social contract that members of society follow to maintain order.
Laws define actions people must and must not do, and actions others are not allowed to do to them.
Laws outline duties and obligations, as well as rights.
Ethical rules are personal standards of behaviour, based on belief systems and often religion.

Three Arms of Government

The legislature (parliament) makes laws and holds the government accountable.
The executive (cabinet) governs and develops policies, proposes, and implements laws.
The judiciary (courts) upholds laws, handles cases, and administers justice.

Legal Persons

Natural persons are human beings.
Juristic persons are artificial entities like companies, universities, municipalities, and the state. They have legal rights and duties.

Sources of Law

Legislation (statutes) is the most important source, as it overrides any other source except the Constitution.
The Constitution of the Republic of South Africa (1996) is the supreme law of the land.
Common law is a body of law established through judicial decisions.
Common law develops through decisions in superior courts that address new issues, interpret legislation, and use foreign legal systems as suggestions.
Customary law is unwritten law based on practices followed by communities since time immemorial and is considered as a formative source but not as important as common law.
Judicial precedent involves courts applying prior decisions on similar cases (stare decisis).
Academic writings in legal textbooks and journal articles are another source of law.
Foreign law is considered if the South African courts encounter legal problems.
International law comes from international agreements/treaties between countries.
Trade practices and customs can form law.

Civil vs. Criminal Cases

Civil cases involve disputes between people, and court decides on allegations made.
Criminal cases involve the state against a person accused of a crime, and the accused has their rights protected by the State.

Types of Courts

Superior courts handle more serious cases and create judicial precedent.
The Constitutional Court is the highest court for constitutional matters, and superior courts have to follow those decisions, but the Constitutional Court may not hear matters for which there is precedent from another superior court.
High Courts handle both criminal and civil cases and hear appeals from inferior courts.
Inferior courts handle less serious cases and cannot create judicial precedent.
Small Claims Court handles civil claims of a certain amount.
Chiefs’ and headmans’ courts deal with customary law issues.

Specific Contracts

A contract of sale has two essentialia: agreement on the item being sold and agreement on the price.
Other requirements include agreement on who the seller and buyer are, duties of the seller, duty to make goods available to buyer, warrant against latent defects, duty not to make false statements, and warranties against eviction.
The duties of the buyer include paying the purchase price, accepting delivery of the goods, and reimbursing the seller for expenses.

Contracts that are void

A contract is void when one of the six basic requirements is missing, and the parties have no legal rights under the contract.
When a contract is void, the matter is treated as if it never existed, and any payments have to be returned.
Parties can reclaim goods/money paid in a void contract using the law of unjustified enrichment.

Contracts that are voidable

A contract is voideable if all requirements are present but the agreement is reached improperly .
This can be due to misrepresentation (false description of a fact), duress (forced by threats), or undue influence.
A voideable contract remains valid until an innocent party decides to void it after they meet the requirements.
The innocent party can rescind the contract or insist it is upheld.

Types of Changes to Contracts

Variation: changing the rights and duties of the contract (occurs when law requires variation to be in writing)
Release: releasing one or both parties from duties.
Delegation: Transferring the duties of a contract to another party,
Assignment: Substitutting one party for another in a contract.
Novation: Replacing an old obligation with a new one.
Compromise: Settling a dispute by creating a new agreement/final settlement.

Ways a Contract can be Terminated

Proper performance: fulfilling the contract terms.
Prescription: the law requires certain contract types to be terminated after a certain period of time.
Impossibility of performance: performance becomes impossible due to unforeseen events
Merger: one party becomes the debtor and creditor in the same contract.
Set off: debts cancel each other out due to same persons.
Death of party: Unless contract terms allow for transfer, cannot transfer rights and duties to estate

Other Contracts

Cession: transfer of rights between persons.
Lease: An agreement between a lessor (landlord) and lessee (tenant).

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Description

Test your knowledge on key concepts of South African contract law, including remedies for breach of contract and the functions of different legal entities. Explore questions on constitutional law and customary law in the South African legal context. This quiz is essential for understanding the complexities of legal principles in South Africa.