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KTH 220 Practice Questions on Sale.pdf - KTH 220 Practice...

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KTH 220 Practice Questions SU 1 (SALE), ST 1 & 2Question 1Mona bought shares to the value of R55 000 from Farhana. Thecontract of sale was concluded orally. Farhana’s attorneyconfirmed this oral contract per email to Mona, by including theagreed terms by way of a memorandum of agreement in theemail.Mona did not respond to this email, nor did she dispute thecontents thereof, except that she put the purchase price at R50000. Farhana’s attorney later passed away. Notes made by thelatter during the negotiations were submitted in order to prove theterms of the agreement between Mona and Farhana.From these notes, it appeared that the parties had agreed on theprice, the method of payment and the thing sold (merx).Information not contained in these notes but included in thememorandum of agreement related to, inter alia, the place ofpayment, legal costs, the paying of bigger instalments as well asthe fact that the memorandum constituted the whole agreementbetween the parties.Mona approached you for advice. She does not want to be boundto the contract and believes that no valid sale took place. She isalso of the opinion that, her failure to reply to the email ofFarhana’s attorney is proof that there was no consensus to acontract of sale.Advise Mona on whether or not a valid contract of sale wasconcluded between her and Farhana as well as the her argumentpertaining to not responding to the email. Include applicable caselaw in your answer. [6]Question 2Indicate whether or not the following agreements are validagreements of sale and provide reasons for your answer andinclude relevant case law where appropriate:1.A sold his textbook to B for R500. The contract contains aclause that ownership will never transfer. [3]
2.A sold his Petrol Station to B which included a site license tosell petroleum products. [3]3.A sold his car to B. The purchase price is described as:“payable in equal monthly instalments without interest”.[3]4.A sold his car to B. The parties agreed that Mr. X a qualifiedauditor will determine the purchase price. [2]5.A sold his car to B. The purchase price is described as “thecurrent or usual selling price at time of conclusion of thecontract”.[2]6.A sold his car to B. The car is still being manufactured andwill only be finished at the end of the year. The parties agreethat B will pay the purchase price whether the car ismanufactured next year or not. [2]7.A sold B 20 imported leather handbags at R1 500 per bag.The bags will only be handmade by A in his factory at the endof August 2022. [2]8.B has a very reputable construction business in the SouthCoast of KZN. On 1 July 2022 B sold the business to Z forR2 million. The contract of sale specifically stipulated that allexisting restraint of trade agreements as well as the goodwillof the business are included in the sale of the business. [2]9.A went Rooibos Bookstore to buy a textbook. The textbookdisplayed 2 prices: R1500 and R1000. What would theposition be regarding price display in terms of applicablelegislation? [2]10.A bought a pair of shoes from a catalogue in a shoe store forR2 500. The shoe store provided a sample of the finishedproduct together with a description as part of their catalogue.When A received the shoes, it was not made of the sameleather as the sample in the store. Advise A on her legalposition in terms of the Consumer Protection Act 68 of 2008.[3]

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Term
Fall
Professor
S van wyk
Tags
Mr King, Mr Kong, Mr King s attorney

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