Study guide CLA1502 - 2012 University of South Africa All rights reserved Printed and published by the University of South Africa Muckleneuk Pretoria

CONTENTS Page Instructions on how to use this Study Guide v Section C: Specific Contracts 1 Study unit 1 The Contract of Sale 2 Study unit 2 The Contract of Lease 11 Study unit 3 The Contract of Insurance 21 Section D: Specific Aspects of Commercial Law 29 Study unit 4 Labour Law 30 Study unit 5 Intellectual Property Law and Franchising 40 Study unit 6 Alternative Dispute Resolution 50 Study unit 7 The Law of Agency 55 Study unit 8 Forms of Business Enterprise 64 Study unit 9 The Law of Competition 77 Study unit 10 Security 84 iii

INTRODUCTION Welcome to Commercial Law 1B (CLA1502). We suggest that you approach your study of this module by first getting an overview of the module. An overview will enable you to identify what you will need to have mastered by the end of the semester to successfully complete the module, and how the different prescribed sections and study units (chapters in the prescribed book) form part of the syllabus for this module. You will recall from the previous module, CLA1501 , that commercial law comprises those legal rules that originated from the usage of merchants and regulate business transactions. In this module you will be studying various topics relating to commercial law. In Section C of the prescribed textbook you will study a number of specific contracts, namely the contract of sale (chapter 13), the contract of lease (chapter 14), and the contract of insurance (chapter 15). They are all variations of the general contract which you studied in CLA1501 . In Section D of the prescribed textbook other aspects of importance for the business world are introduced. At first glance the topics may seem unrelated but most of them bear some relation to the law of contract. In this section there is a study unit on labour law (chapter 17) which includes the contract of employment, a study unit on intellectual property law and franchising (chapter 18), which includes the rights and obligations of parties to a franchising agreement, a study unit on alternative dispute resolution (chapter 19), and a study unit on the law of agency (chapter 20), which explains how one person can conclude a contract on behalf of another. Chapter 21 discusses the different forms of business enterprise, and explains how contracts are concluded on behalf of such enterprises. The law of competition (chapter 22) provides the background to the rules that apply when parties are in competition. Please note that unlawful competition constitutes a delict, and is not based on the law of contract as are most of the other aspects of this module. This also explains why the remedies are different. Finally, you will see that certain forms of security (chapter 23) do arise by contract, whereas others come about by operation of law.