21 2021

MODULE NAME: MODULE CODE:

BUSINESS LAW BUSL6212/d/w
BUSINESS LAW BUSL6222/d/w

ASSESSMENT TYPE: ASSIGNMENT 1 (PAPER ONLY)

TOTAL MARK ALLOCATION: 100 MARKS

TOTAL HOURS: 10 HOURS

By submitting this assignment, you acknowledge that you have read and understood all the rules as
per the terms in the registration contract, in particular the assignment and assessment rules in The
IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism rules in the
Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in the student
portal.

INSTRUCTIONS:

1. No material may be copied from original sources, even if referenced correctly, unless it is a
direct quote indicated with quotation marks. No more than 10% of the assignment may
consist of direct quotes.
2. Any assignment with a similarity index of more than 25% will be scrutinised for plagiarism.
Please ensure you attach an originality report to your assignment if required.
3. Make a copy of your assignment before handing it in.
4. Assignments must be typed unless otherwise specified.
5. All work must be adequately and correctly referenced.
6. Begin each section on a new page.
7. Follow all instructions on the assignment cover sheet.
8. This is an individual assignment

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Referencing Rubric ____

Providing evidence based on valid and referenced academic sources is a fundamental educational principle and the
cornerstone of high-quality academic work. Hence, The IIE considers it essential to develop the referencing skills of our
students in our commitment to achieve high academic standards. Part of achieving these high standards is referencing in a
way that is consistent, technically correct and congruent. This is not plagiarism, which is handled differently.
Poor quality formatting in your referencing will result in a penalty of a maximum of ten percent being deducted from the
mark awarded, according to the following guidelines. Please note, however, that evidence of plagiarism in the form of
copied or uncited work (not referenced), absent reference lists, or exceptionally poor referencing, may result in action
being taken in accordance with The IIE’s Intellectual Integrity Policy (0023).
Markers are required to provide feedback to students by indicating (circling/underlining) the information that best
describes the student’s work.
Minor technical referencing errors: 5% deduction from the overall mark – the student’s work contains five or more
errors listed in the minor errors column in the table below.
Major technical referencing errors: 10% deduction from the overall mark – the student’s work contains five or more
errors listed in the major errors column in the table below.
If both minor and major errors are indicated, then 10% is deducted from the overall mark.
The examples provided below are not exhaustive but are provided to illustrate the error.
Required: Minor errors Major errors
Technically correct referencing style in technical correctness of referencing In technical correctness of referencing style
style Deduct 10% from mark awarded
Deduct 5% from mark awarded
Consistency Minor inconsistencies. Major inconsistencies.
The referencing style is generally Poor and inconsistent referencing style used
The same referencing format has been consistent, but there are one or two in-text and/or in the bibliography/ reference
used for all in-text references and in the changes in the format of in-text referencing list.
bibliography/reference list. and/or in the bibliography. Multiple formats for the same type of
For example, page numbers for direct referencing have been used.
quotes (in-text) have been provided for one For example, the format for direct quotes
source, but not in another instance. Two (in-text) and/or book chapters
book chapters (bibliography) have been (bibliography/ reference list) is different
referenced in the bibliography in two across multiple instances.
different formats.
Technical correctness Generally, technically correct with some Technically incorrect.
minor errors. The referencing format is incorrect.
Referencing format is technically correct The correct referencing format has been Concepts and ideas are typically referenced,
throughout the submission. consistently used, but there are one or two but a reference is missing from small
errors. sections of the work.
Concepts and ideas are typically referenced, Position of the references: references are
Position of the reference: a reference is but a reference is missing from one small only given at the beginning or end of large
directly associated with every concept or section of the work. sections of work.
idea. Position of the references: references are For example, incorrect author information is
only given at the beginning or end of every provided, no year of publication is provided,
paragraph. quotation marks and/or page numbers for
For example, quotation marks, page For example, the student has incorrectly direct quotes missing, page numbers are
numbers, years, etc. are applied correctly, presented direct quotes (in-text) and/or provided for paraphrased material, the
sources in the bibliography/reference list book chapters (bibliography/reference list). incorrect punctuation is used (in-text); the
are correctly presented. bibliography/reference list is not in
alphabetical order, the incorrect format for
a book chapter/journal article is used,
information is missing e.g. no place of
publication had been provided
(bibliography); repeated sources on the
reference list.
Congruence between in-text referencing Generally, congruence between the in-text A lack of congruence between the in-text
and bibliography/reference list referencing and the bibliography/ reference referencing and the bibliography.
list with one or two errors. No relationship/several incongruencies
All sources are accurately reflected and are There is largely a match between the between the in-text referencing and the
all accurately included in the sources presented in-text and the bibliography/reference list.
bibliography/reference list. bibliography. For example, sources are included in-text,
For example, a source appears in the text, but not in the bibliography and vice versa, a
but not in the bibliography/reference list or link, rather than the actual reference is
vice versa. provided in the bibliography.
In summary: the recording of references is In summary, at least 80% of the sources are In summary, at least 60% of the sources are
accurate and complete. correctly reflected and included in a incorrectly reflected and/or not included in
reference list. reference list.

Overall Feedback about the consistency, technical correctness and congruence between in-text referencing and bibliography:
_________________________________________________________________________________________________________________
________________________________________________________________________________________________________________

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Question 1 (Marks: 10)

Briefly explain why the following contracts are void or unenforceable.

Q.1.1 Tina verbally agrees to stand surety for James’ student loan from ZA Bank. (2)

Q.1.2 Thabo and Sam are family friends and grew up together. Thabo phones Sam and (3)
offers him R5 million for Sam’s cattle farm. They agree that they have concluded a
contract of sale in respect of the immovable property and do not see the need for a
written offer and acceptance as each trusts the other.

Q.1.3 Jane and John decide to get married in community of property. Jane’s cousin is an (3)
attorney and drafts the antenuptial contract for them free of charge as a wedding
gift. They both sign the antenuptial contract and place it in a safety deposit box at the
bank for safe keeping.

Q.1.4 Lindi is in the process of purchasing an apartment from John. The conveyancing (2)
attorney emails the Agreement of Sale (already signed by John) to Lindi to print out
and sign. Lindi is overseas on holiday and places her electronic signature on the
document and sends it back to the conveyancing attorney to lodge as part of the
transfer documents.

Question 2 (Marks: 30)

Q.2.1 Identify the type of contractual clauses that are evidenced by the following scenarios
or extract from contracts:

Q.2.1.1 “No variation or consensual cancellation of this Lease shall be of any force (2)
or effect unless reduced to writing and signed by both parties”.

Q.2.1.2 Mark undertakes to buy Lucy a new car after Lebo dies. (2)

Q.2.1.3 Ben enters into a lease agreement with Sipho to rent Sipho’s house for a (2)
period of two years.

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Q.2.1.4 “Should no amounts be due and owing to the lessor in terms of the lease, (2)
the deposit, together with the accrued interest in respect thereof, must
be refunded by the lessor to the Lessee, without any deduction or set-off,
within 7 (seven) days of expiration of the lease”.

Q.2.1.5 Nelson donates a house to Penny, subject to the strict condition that she (2)
must allow part of it to be used as a soup kitchen for the needy in her
area.

Q.2.1.6 Kudu sells his erf with a house on it to Princess for R650 000. The contract (2)
is put into writing and signed by both parties. The contract contains the
following provision:

“This sale is subject to Princess obtaining a loan for the purchase price
within 20 days from the signing of the contract from FNB against security
of a first mortgage bond on the land”.

Q.2.1.7 “An automatic late charge of R300 (One Hundred Rand) will be assessed (2)
for rents not received by 12h00 on the date that the rent is due”.

Q.2.1.8 Peter enters into a contract with Mary in terms of which Peter hires (2)
Mary’s flat until her death.

Q.2.1.9 Sanjay will pay Musa R15 000 three months after Musa’s father’s death. (2)

Q.2.1.10 “Should the Lessee commit or suffer or permit a breach of any other term (2)
of this Lease and fail to remedy such breach within twenty (20) days after
notice has been given to the Lessee requiring the Lessee to remedy such
breach, then the Lessor shall be entitled to immediately cancel this
Agreement and retake possession of the Leased Premises without
prejudice to any of his other rights under this Lease or at law”.

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Q.2.2 Read the following terms which appear in contracts and identify whether the term
constitutes the essentialia, naturalia or incidentialia of the contract and give a
reason to substantiate your choice.

Q.2.2.1 Sicelo buys tools from Dean and the purchase price of the tools is R200. (2)

Q.2.2.2 A clause in a lease agreement that states that it is the duty of the lessee to (2)
take reasonable care of the leased premises.

Q.2.2.3 Jane and Thembi enter into an agreement of sale for a textbook. They (2)
agree to meet at Starbucks in Sandton City Mall at 15h00 the following
day to make the exchange.

Q.2.2.4 The clause in a lease agreement that sets out and explains the common (2)
law principle of the landlord’s tacit hypothec.

Q.2.2.5 The parties agree between themselves that if the payment of the (2)
purchase price is received after a certain date, interest will be payable at
5% per day that it is late.

Question 3 (Marks: 30)

Q.3.1 Julie and Suresh conclude an agreement in terms of which they agree that Julie will
pay Suresh the amount of R50 000 to murder her husband, Alex.

Q.3.1.1 Will this contract be valid and enforceable? Substantiate and explain your (5)
answer by making reference to:
• The relevant contractual requirement/s that are in question;
• Defining or explaining the correct requirement/s; and
• The reasoning (rationale) for the correct answer.

(NOTE — No marks will be allocated for "yes" or "no". The marks are
awarded with reference to the substantiation/ motivation provided).

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Q.3.1.2 With reference to the applicable legal rule, briefly discuss the legal (5)
consequences of an agreement such as the one between Julie and Suresh.

Q.3.2 Clive who lives in Johannesburg agrees to buy a horse from Pretty who lives in Cape
Town as Pretty is finding it too expensive to pay stable fees.
The parties agree on the purchase price of R 500 000 to be paid on delivery of the
horse on 30th December 2020. Whilst Clive is en route to Cape Town there is a
vicious storm. Due to the loud thunder and lightning, the horse experiences severe
shock from which it eventually dies.

Q.3.2.1 Identify the type of impossibility that applies to the above scenario. (1)

Q.3.2.2 Assume that there was no storm but that Pretty was driving the horse (3)
from Cape Town to meet Clive halfway between Cape Town and
Johannesburg to deliver the horse to him.

Along the drive from Cape Town Pretty stops along the way to meet some
friends that he has not seen in some time. He joins them in a pub and has
a few beers before proceeding on his journey., The beers make him tired
and he falls asleep at the wheel. As a result, he has an accident which
causes the death of the horse.

Explain the legal position that now exists between the parties.

Q.3.2.3 Explain the type of impossibility exists in Q.3.2.2 above. (2)

Q.3.2.4 Advise Clive whether he would be successful in claiming the purchase (4)
price back from Pretty.

Q.3.2.5 Explain the legal effect that initial impossibility of performance has on a (3)
contract.

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Q.3.3 Imagine that at the start of their negotiations, Pretty gave Clive a choice of three (7)
horses that he owned and said that when Clive arrives in Cape Town he must come
and choose which of the horses he wants. In the meantime, Clive must transfer the
R500 000 to Pretty before coming to choose a horse.

With reference to what constitutes certainty of performance as a requirement for a

valid contract, explain whether Pretty’s performance will be considered to be
certain in this scenario.

Question 4 (Marks: 30)

Q.4.1 Amika is getting married on the 3rd September 2020 at 2pm and asks Nadia to sew
her wedding dress which she agrees to do. No time is specified but they agree that
she will have her first fitting on 20th June 2020. Amika goes for her fitting but is a bit
concerned that the dress is relatively incomplete and Nadia promises that the dress
will be completed by the next fitting on 20th July 2020. On the day of the second
fitting the dress fits Amika perfectly but Amika is worried that Nadia will not
complete the dress in time for the wedding as the pearls had not been sewn on.
Amika tells Nadia that she wants the completed dress to be dropped off at her
house on the 20th of August 2020. Nadia fails to deliver the dress on the 20th of
August 2020 despite numerous telephone calls made by Amika.

Q.4.1.1 Fully justifying your answer, identify the type of breach of contract that (5)
was committed in this scenario.

Q.4.1.2 Assume that Nadia delivers the dress late at Amika’s home on the 3rd (5)
September at 3pm and there is no one at the house. Everyone had already
left for the reception in the Midlands which is 3 hours away. Amika is
forced to wear her mother’s wedding dress and even if Nadia drives to the
Midlands the wedding would be over.

Identify and explain the breach that is applicable in this particular

instance.

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Q.4.1.3 Would you answer be different if Nadia did perform on time, but (2)
delivered the incorrect wedding dress?

Q.4.2 Paul and Evan have entered into a contract in terms of which Evan undertakes to
install a state-of the-art recording studio at Paul’s home in Clifton on the 22nd of
August 2019. It is essential that the installation takes place no later than the 22nd of
August, as Paul will be recording the next album of the up-and-coming rapper T-Rap in
the new studio, commencing on 2 September 2019, and the installation is expected to
take seven working days.

At 08h00 on the 22nd of August, Evan arrives at Paul’s house, ready to install the
recording equipment. The gate to the property is locked and no-one appears to be
home. Evan calls Paul on the latter’s cell phone and Paul informs Evan that he has
forgotten about the installation, and he will only be able to unlock the gate for Evan
the following day as he’s currently in Johannesburg in business.

Q.4.2.1 Set out the requirements for the form of breach that has been committed (6)
in this scenario.

Q.4.2.2 Evan demands payment from Paul for the day that he made himself (4)
available as he charges by the hour for labour. Paul expresses the opinion
that as it is now “too late”, he will just get another contractor to do the job
as the parties “owe each other nothing”.

Advise Paul on the correct legal position.

Q.4.2.3 Advise Evan on whether Paul’s conduct and comments that they “owe (8)
each other nothing” is sufficient to amount to a flat-out repudiation of the
contract.

END OF PAPER

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