Question
1: [15]
Differentiate between
the following concepts:-
(1) A legal subject and a legal object; (3)
(2) A natural and a juristic person; (3)
(3) A duty and an obligation; (3)
(4) Common law and customary law; (3)
(5) A co-operative and a company; (3)
Q 1
1.1 legal subject = rights
and duties,
legal object = does not
have rights and duties but monetary
value
1.2 natural person = all
human beings that has legal
personality,
juristic person = is an
entity created by natural persons with intention to create rights and duties
separate from the founders.
1.3 duty = a
responsibility to perform according to the terms & conditions of the
contract
Obligation = legal tie between
legal subjects recognised by law created by source of obligation that creates
rights and duties
1.4. Common law = Unlike
most European continental legal systems, SA law is not codified:
- It
is drawn from various authoritative sources
- Such
as statutes (legislation) and decided cases
- Occasionally
also Roman and Roman-Dutch law.
Customary law= Does
not consist of written rules but develops from the habits of the community and
is carried down from generation to generation
A
customary rule will be recognized as a legal rule when:
It
must be reasonable
It
must have existed for a long time
It
must be generally recognized and
observed by the community
It
must be certain and clear
1.5 Co-opertaive = A co-operative is:
* an independent
association of persons who join forces to
* meet
their economic, social and cultural needs and aspirations
* through
a jointly owned and democratically controlled enterprise, organised and
operated on co-operative principles.
The
co-operative provides services and products to its members.
Profits,
known as surpluses in a co-operative, are divided among members in relation
to the amount of the business each member did with the co-operative.
Company = is a juristic
entity created by natural persons to restrict the shareholders personal
liability
Question 2: [15]
2.1 Define and differentiate between a primary,
secondary and tertiary co-operative (5)
u “A primary co-operative’’ means a co-operative
formed by a minimum of five natural persons whose object is to provide
employment or services to its members and to facilitate community development.
u “A secondary co-operative’’ means a
co-operative formed by two or more primary co-operatives to provide sectoral
services to its members, and may include juristic persons.
u “A tertiary co-operative’’ means a
co-operative whose members are secondary co-operatives and whose object is to
advocate and engage organs of state, the private sector and stakeholders on
behalf of its members, and may also be referred to as a cooperative apex.
2.2 Discuss the liability of members of a co-operative. (5)
The liability of a member of a co-operative is
limited to an amount equal to the nominal value of the shares, for which
the member has not paid, that the member holds in the cooperative.
2.3 List the essential elements that are
required in order for a contract to be valid.
(5)
a)
Contractual capacity
b)
Agreement
c)
Formalities-must comply with formalities required by
law.
d)
Certainty – the contract must be clear & certain.
e)
Possibility of performance –performance expected from
each party must be possible.
f)
Legality –you cannot hold one to contract that
requires them to do something illegal.
Question 3:
[20]
Mr.
Smith sells his beautiful thoroughbred horse, THE STALLION, to Mr. Scott. They
agree on a purchase price of R1000 000. Included in the price is THE STALLION’S
grooming equipment and saddle. Read the cases narrated below and identify the
form of breach in question and the most suitable remedy for the
breach. Also explain why you think the remedy you have identified is the most
appropriate.
(1)
Before delivery of the purchased items, Mr.
Scott informs Mr. Smith that he has changed his mind and that he no longer
wants to purchase THE STALLION; (5)
Form of breach =
repudiation
Any behaviour by a party
to the contract indicating his intention not to honour the contract.
Entitled to normal
remedies = cancel contract, sue for specific performance and damages and
interest if incurred.
(2)
On delivering THE STALLION, Mr. Scott is not ready
to receive the horse because he had not mended his farm fence. Mr. Smith has to
take the horse back and wait for Mr. Scott to accept delivery of the horse well
after the due date for delivery. (5)
Form of beach = Mora
Creditoris
The creditor causes the
debtor’s performance to be delayed.
Specific performance, damages
and interest
(3)
On delivery of THE STALLION Mr. Smith informs Mr.
Scott that the saddle and grooming equipment that formed part of the purchase
price was stolen. (5)
Prevention
of performance = debtor cannot render performance
Cancellation
of contract and damages
(4)
THE STALLION is delivered and Mr. Scott pays
Mr. Smith with counterfeit money. (5)
Positive
Malperformance = debtor tenders improper performance
Specific performance / cancellation and damages
THE END
