HFL Learning Unit 3 (P2)

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Questions and Answers

Which scenario most accurately reflects the principle that contractual obligations must be physically possible?

A contract requiring an individual to perform services for a company that subsequently goes bankrupt.
A contract requiring the debtor to deliver a specific painting that was destroyed in a fire before the contract was concluded. (correct)
A construction contract that becomes more expensive due to unforeseen increases in material costs.
An agreement where a company promises to transport goods to a location that becomes inaccessible due to a sudden natural disaster after the contract's formation.

How does the modern application of bona fides (good faith) influence contractual liability in South African law, considering the Constitution?

It is primarily used to interpret ambiguous contract clauses in favor of the party with the most bargaining power.
It strictly enforces all contractual terms, ensuring maximal freedom of contract regardless of fairness.
It serves only as a historical reference without practical application in contemporary contract disputes.
It emphasizes ethical conduct, justice, and fairness, potentially overriding strict adherence to contractual terms to promote equitable outcomes. (correct)

In the context of Roman contract law, how did real contracts differ fundamentally from consensual contracts?

Real contracts involved only the transfer of immovable property, unlike consensual contracts.
Real contracts required only verbal agreement, while consensual contracts needed written documentation.
Real contracts were enforced by religious authorities, whereas consensual contracts were secular agreements.
Real contracts were formed by agreement plus the delivery of a *thing*, whereas consensual contracts were formed by agreement alone. (correct)

When can the voetstoots clause, which typically protects a seller from liability for latent defects, be overridden, providing recourse to the purchaser?

If the seller fraudulently concealed the defect, or if the Consumer Protection Act (CPA) applies to the transaction. (C) Signup and view all the answers

In what critical aspect does the Consumer Protection Act (CPA) alter the common law principles regarding contractual agreements?

The CPA introduces stricter requirements for disclosure of information and fair terms, which can override freedom of contract to protect consumers. (B) Signup and view all the answers

How might Sections 9, 10, and 12 of the Constitution, which guarantee equality, human dignity, and freedom, respectively, influence the interpretation of a contract that appears to exploit one party's vulnerability?

They could justify a court's intervention to ensure that the contract's enforcement aligns with principles of fairness and justice, potentially altering or invalidating certain terms. (A) Signup and view all the answers

What distinguishes a suspensive term from a resolutive condition in contract law?

A suspensive term delays the enforceability of a contract obligation until a fixed future date, while a resolutive condition ends the contract if a specified event occurs. (A) Signup and view all the answers

In a contract for the sale of goods, what recourse does a purchaser have against a seller for latent defects if the Consumer Protection Act (CPA) applies and the seller has fraudulently concealed these defects?

The purchaser can pursue any remedies available under the CPA, including cancellation of the contract and a full refund, in addition to potential damages for deceit. (C) Signup and view all the answers

How does contract law, which is traditionally based on freedom of contract, intersect with wealth and power dynamics in society?

Contract law can perpetuate and exacerbate existing inequalities when one party has significantly less bargaining power, leading to unfair or exploitative agreements. (D) Signup and view all the answers

Which of the following scenarios best illustrates the delictual source of obligation?

An obligation that requires a person to compensate another for damages caused by negligent driving. (C) Signup and view all the answers

How do the principles of ubuntu and public policy influence a court's interpretation of contractual terms in South Africa?

They provide a framework for assessing whether contractual terms are unreasonably unfair or contrary to the community's sense of justice and fairness. (B) Signup and view all the answers

What is an error in substantia and how does it influence contract enforceability?

An error in substantia is a mistake about the fundamental qualities or nature of the object of the contract and may render the contract voidable. (B) Signup and view all the answers

What distinguishes culpa levis in abstracto from other standards of care in determining contractual liability?

Culpa levis in abstracto is a common-law standard of care that refers to the duty to avoid even the slightest negligence, evaluated against the conduct of a reasonably diligent person. (A) Signup and view all the answers

How does the duty to deliver 'vacant possession' by the seller in a contract of sale protect the purchaser?

It guarantees the purchaser will have exclusive and undisturbed use of the property, free from any competing claims or encumbrances. (A) Signup and view all the answers

Which scenario exemplifies supervening impossibility caused by vis major?

A farmer's crops are destroyed by an unexpected and severe hailstorm, making it impossible to deliver the contracted produce. (C) Signup and view all the answers

In the context of contractual obligations, what is the legal effect of res extra commercium?

It makes the contractual obligation void because the object of the contract is legally impossible to trade or own privately. (D) Signup and view all the answers

A contract includes a clause stating that 'performance is subject to the buyer obtaining financing at an interest rate not exceeding 10%'. If the buyer can only secure financing at 11%, how is the contract affected?

The contract is automatically void because the specified condition for financing was not met. (A) Signup and view all the answers

What is the key consideration for legally distinguishing between a loan for consumption (mutuum) and a loan for use (commodatum) in Roman contract law?

Whether the same item or an equivalent item is to be returned. (B) Signup and view all the answers

How does the principle of reciprocal duties apply in a contract of sale (emptio venditio)?

The duties of the purchaser and seller are directly linked, each serving as consideration for the other's performance. (A) Signup and view all the answers

In the context of modern South African contract law, what is the effect of a dolus (fraudulent) misrepresentation by one party to the other during contract negotiations?

It renders the contract voidable at the election of the innocent party. (C) Signup and view all the answers

In Roman contract law, what distinguished a mandate from other forms of consensual contracts?

A mandate was characterized by the voluntary provision of services without compensation, aimed at benefiting the mandator. (C) Signup and view all the answers

What are the potential implications if a contract, valid on its face, is later found to promote discriminatory practices that undermine the constitutional right to equality?

The court may sever the discriminatory clauses or declare the entire contract unenforceable to uphold constitutional values. (B) Signup and view all the answers

In which scenario would duress (metus) most likely render a contract voidable?

When one party is coerced into a contract under threat of physical harm or blackmail. (D) Signup and view all the answers

What must be proven to succeed with an actio redhibitoria against a seller?

That the defect was latent (hidden), significant, and existed at the time of sale, entitling the purchaser to cancel the contract. (C) Signup and view all the answers

What circumstances justify the enforcement of an oral agreement for the sale of land, despite the general requirement that such agreements be in writing?

When the buyer has fully performed their obligations and the seller would be unjustly enriched by denying the agreement. (D) Signup and view all the answers

What distinguishes a contract of partnership (societas) from other contractual agreements, particularly concerning economic activities?

Partnerships necessitate a shared economic venture or pursuit where all partners contribute and share in the profits or losses. (A) Signup and view all the answers

How does the concept of 'just cause' influence fixed-term employment contracts in South Africa, particularly concerning premature termination?

An employer can only terminate a fixed-term employment contract before its expiry if there is a 'just cause,' such as misconduct or operational requirements. (A) Signup and view all the answers

In the context of agency law, if an agent exceeds their authority but the principal ratifies the agent's actions, what is the legal consequence?

The transaction becomes binding on the principal as if the agent had acted within their authority from the outset. (C) Signup and view all the answers

Which of the following best describes the legal principle of caveat emptor, and when might its application be limited?

Caveat emptor means 'buyer beware,' placing the burden on the buyer to examine goods before purchase; its application is limited by consumer protection laws and guarantees of good faith. (C) Signup and view all the answers

Building on the interrelation between property law and contract law, which scenario best exemplifies how property rights might directly influence contractual obligations?

A construction company enters into a contract to build a house on land it does not own, without securing the necessary property rights beforehand. (B) Signup and view all the answers

Flashcards

Obligation

A legal bond between a creditor and a debtor, granting a personal right to claim performance.

Sources of obligations

Agreement, wrongful acts (delicts), quasi-contracts, and quasi-delicts.