Sample Test

UNIVERSITY OF ZULULAND

DEPARTMENT OF MERCANTILE LAW

FACULTY OF COMMERCE ADMNISTRATION & LAW

 

 

Major Class Test 1

Time:                     1 Hour 30 Minutes

Subject:                 Commercial Law for Cooperatives

Total Marks:            50

This paper consists of 3 pages including the cover page.

Examiner                                            Moderator

Mr L. Ndlovu                                       Adv A.B Leslie

Instructions to Candidates

1.     Answer all questions and write clearly and legibly.

2.     Answer each question on a separate page and parts of a question must be dealt with at once continuously and not in different sections of the answer book.

3.     Where appropriate, make use of examples from cooperative practice.

 

QUESTION ONE

a)    Explain in your own words the meanings of the following words/terms:

 

                           i.          Obligation                                                                           (1)

                          ii.          Interpellatio                                                                         (1)

                        iii.          Interdict                                                                                (1)

                        iv.          Sources of law                                                                     (1)

                         v.          Cancellation clause                                                              (1)

 

b)    Identify the four forms of breach of contract in South African law and briefly explain what each one of them entails.                                                       (8)

 

c)     Thuthukisani cooperative , a cattle ranching and successful cooperative run by spouses of former freedom fighters, sells a stud bull to Y, a neighbouring farmer  who runs small butcheries in the district for a purchase price of           R7 000. The cooperative is represented by one of its founding members, Zanele Mkhize, known as ‘Mazet’ or Mrs Z. Identify the breach, the party who commits the breach and the obligation to which the breach relates in the following situations:

 

                           i.          Before delivery of the bull, Mrs Z calls Y and tells him that the cooperative has changed its mind; his bull is not for sale after all.                        (4)

 

                          ii.          Y finds a better bull for R5 500. He therefore tells Mrs Z not to bother to deliver the bull as he is not prepared to pay R7 000 for it.                      (4)

 

 

                        iii.          The cooperative has visitors from Thailand who like bull meat and the bull is slaughtered for them. Mrs Z tells Y that the cooperative will have to refund him.                                                                                              (4)

 

                        iv.          The bull is delivered, but it is old, disfigured and emaciated and very much unlike the one Mrs Z pointed out to Y during the sale negotiations.                                                                                                                 (4)

 

 

                         v.          In the law of contract, what does the sentence, ‘time is of the essence’ mean?                                                                                          (2)

 

                        vi.          How is time counted in terms of the civil method of counting?     (2)

 

 

 

QUESTION TWO

(a) James is 17 years old. He and Jimara approach you for advice. They wish to know whether James needs someone’s consent to conclude the following contracts. In addition, explain what the effect will be if such consent is not obtained.

       i.          Jimara wishes to donate a motorbike to James.                                       (1)

 

      ii.          James wishes to rent a flat from Jimara.                                                    (2)

 

    iii.          James wishes to purchase a stand from Jimara for R50000.                     (2)

 

    iv.          What will your advice be if James was already running his own business and had bought land before, which has been transferred into his own name?          (2)

 

 

(b) Briefly explain the major differences between an order for specific performance and an interdict.                                                                                                                   (5)

 

(c) List the essential elements that are required in order for a contract to be valid. (5)

 

Total Marks 50