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COMBUS

NOVEMBER 2013 EXAMINATION

DATE: 5 NOVEMBER 2013

TIME: 09H00 – 11H00 TOTAL: 100 MARKS

DURATION: 2 HOURS PASS MARK: 40%

(LP-009) COMMERCIAL LAW

THIS EXAMINATION PAPER CONSISTS OF 4 SECTIONS: SECTION A: CONSISTS OF:

(i) 10 MULTIPLE-CHOICE QUESTIONS (10 MARKS) (ii) 10 MATCHING-STATEMENT QUESTIONS (10 MARKS)

ANSWER ALL THE QUESTIONS SECTION B: CONSISTS OF 3 SHORT QUESTIONS ANSWER ALL THE QUESTIONS (20 MARKS) SECTION C: CONSISTS OF 5 LONG ANSWER QUESTIONS ANSWER ALL THE QUESTIONS (40 MARKS) SECTION D: CONSISTS OF 3 INTERPRETATIVE QUESTIONS ANSWER ANY ONE OF THE QUESTIONS (20 MARKS) INSTRUCTIONS: 1. Read the following instructions carefully before answering the paper, as failure to act upon them will

result in a loss of marks. 2. Write your answers in your answer book, which is provided in the exam. 3. Ensure that your name and student number are clearly indicated on your answer book. 4. Write your answers in either blue or black ink in your answer book. 5. Read each question very carefully before you answer it and number your answers exactly as the

questions are numbered. 6. Begin with the question for which you think you will get the best marks. 7. Note the mark allocations for each question – give enough facts to earn the marks allocated.

Don't waste time by giving more information than required. 8. You are welcome to use diagrams to illustrate your answers. 9. Please write neatly – we cannot mark illegible handwriting. 10. Any student caught cheating will have his or her examination paper and notes confiscated.

The College will take disciplinary measures to protect the integrity of these examinations. 11. If there is something wrong with or missing from your exam paper or your answer book, please inform

your invigilator immediately. If you do not inform your invigilator about a problem, the College will not be able to rectify it afterwards, and your marks cannot be adjusted to allow for the problem.

12. This paper may be removed from the examination hall after the examination has taken place.

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__________________________________________________________________________

SECTION A (20 MARKS) __________________________________________________________________________

ANSWER ALL THE QUESTIONS __________________________________________________________________________ (i) MULTIPLE-CHOICE QUESTIONS Choose the correct option for each of the following. Write only the question number and your chosen answer. For instance, if you think that the correct answer for number 1 is (a), then write it as 1. (a). 1. A legal subject may be defined as:

(a) any person or body who irrespective of the law may be the bearer of rights and duties.

(b) any person or body who in terms of the law may be the bearer of rights and duties.

(c) a permanent resident of South Africa. (d) a topic for discussion in a court of law.

2. Customary law:

(a) does not consist of written rules, but develops from the habits of the community and is carried down from generation to generation.

(b) is the law of etiquette. (c) consists only of written rules and the habits of the community, and is

carried down from generation to generation. (d) does not have any bearing in the modern statutes.

3. A civil dispute is a dispute:

(a) that arises between two or more public companies. (b) that arises between two or more private persons. (c) with the government. (d) that arises between the civil service and the employer.

4. Duress may be defined as:

(a) an unlawful threat of harm or injury, made by a party to the contract or someone acting on his or her behalf that causes the other party to enter into a contract.

(b) the result of working long hours in contravention of the Labour Laws. (c) any improper or unfair conduct by one of the contracting parties by

means of which he or she persuades the other contracting party to enter into the contract with him or her, contrary to the latter's independent will.

(d) a legal excuse for delaying the signing of a contract within the prescribed period.

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5. Undue influence may be defined as:

(a) an unlawful threat of harm or injury, made by a party to the contract or someone acting on his or her behalf that causes the other party to enter into a contract.

(b) the result of working long hours in contravention of the Labour Laws. (c) any improper or unfair conduct by one of the contracting parties by

means of which he or she persuades the other contracting party to enter into the contract with him oir her, contrary to the latter's independent will.

(d) a legal excuse for delaying the signing of a contract within the prescribed period.

6. Age of majority: A child whether male or female, becomes a major upon

reaching the age of:

(a) 12 years. (b) 16 years. (c) 18 years. (d) 21 years.

7. Initial impossibility of performance exists where performance was:

(a) possible at the time of conclusion of the contract. (b) impossible at the time the contract was first mooted. (c) an inability of a person to sign his or her name. (d) impossible at the time of conclusion of the contract.

8. A debt counsellor is a neutral person who is registered in terms of the NCA,

who:

(a) counsels and advises consumers who require credit assistance. (b) counsels and advises consumers about where to obtain more funds. (c) acts as a paid agent of the bank. (d) counsels and advises consumers who have been sent to prison.

9. An employee is a person:

(a) including an independent contractor, who works for another person or assists him or her in his or her business, or who works for the State, and who receives remuneration.

(b) excluding an independent contractor, who works for another person or assists him or her in his or her business, or who works for the State, and who receives remuneration.

(c) excluding an independent contractor, who works for another person or assists him or her in his or her business, or who works for the State, and does not receive any remuneration or reward.

(d) including an independent contractor, who works for his own account. 10. A real right is enforceable:

(a) against only the people in the community. (b) only if sanctioned by the courts. (c) against a criminal. (d) against the whole world or any legal subject. [10]

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(ii) MATCHING-STATEMENT QUESTIONS Match the statements in Column B to the statements in Column A. Write down the answers only, for example 1. (a).

Column A Column B

1. ethics (a) any person or body who in terms of the law may be the bearer of rights and duties

2. common law (b) the norms or rules of moral conduct that are prescribed by individuals for themselves

3. misrepresentation (c) a branch of law, often called Commercial Law that deals with the rules and institutions of commercial transactions

4. legal personality is given to any organisation

(d) the body of law inherited from a particular former legal system

5. delegation (e) transfer of a personal right (rights of performance) by agreement

6. cession (f) where the guardian allows the minor to lead his or her own economically independent existence

7. a legal subject (g) a false statement of fact

8. mercantile law (h) a combination of cession and delegation in that all the rights and duties under the contract are transferred to another person

9. tacit emancipation occurs (i) transfer of a duty (an obligation) to a third party

10. assignment (j) which is a subject of legal rights and duties, e.g. companies, estates of deceased persons, municipalities, trade unions etc.

[10]

[20]

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SECTION B: SHORT QUESTIONS (20 MARKS) __________________________________________________________________________

ANSWER ALL THE QUESTIONS __________________________________________________________________________ QUESTION 1 Briefly explain the two types of legal rights – real rights and personal rights. [5] QUESTION 2 Identify the five requirements that must be met for a law to be considered just. [5 × 2 = 10] QUESTION 3 List the five sources of South African Law. [5] [20]

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SECTION C: LONG ANSWER QUESTIONS (40 MARKS) __________________________________________________________________________

ANSWER ALL THE QUESTIONS __________________________________________________________________________ QUESTION 1 List ten of the different types of courts in South Africa. [10] QUESTION 2 Give the requirements that must be satisfied for a contract to be voidable as a result of misrepresentation. [8] QUESTION 3 Name the contracts that are contrary to common law. [8] QUESTION 4 Describe the contracts that must be in writing to be valid. [6] QUESTION 5 Identify the most important differences between an employee (contract of employment) and a mandatory (contract of mandate). [8] [40]

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SECTION D: INTERPRETATIVE QUESTIONS (20 MARKS) __________________________________________________________________________

ANSWER ANY ONE OF THE QUESTIONS __________________________________________________________________________ QUESTION 1 Explain the five techniques of interpretation of written contracts and identify the principles of interpretation of contracts. [20]

OR QUESTION 2 (a) Describe the requirements for default by the debtor. (6) (b) Identify and describe the four different prescriptions. (8) (c) Explain the concept 'initial impossibility of performance'. (6) [20]

OR QUESTION 3 Outline the possible steps in a civil case. [20] [20]

Section A: 20 marks

Section B: 20 marks

Section C: 40 marks

Section D: 20 marks

TOTAL: 100 MARKS