QUESTION 108 In terms of a written agreement, Conrad purchased a house from Leonard for R650 000. Conrad paid an amount of R100 000 as deposit. The balance of the purchase price was to be covered by a loan from the bank payable on registration. Owing to fault on Leonard’s part, the transfer of the house into Conrad’s name was delayed. Conrad sent a letter to Leonard demanding that transfer be effected within two months, and he would then pay the balance of the purchase price. Conrad also stated in the letter that he would rescind from the contract and demand repayment of the deposit and claim damages if Leonard failed to co-operate. Which ONE of the following statements is CORRECT ? 1. Conrad is not entitled to send a letter of demand to Leonard, because Conrad has not paid the agreed purchase price for the house in full. 2. Conrad is entitled to claim transfer of the house into his name. 2 is the CORRECT answer. 3. Because Conrad is in mora , Leonard will be released from his obligation to perform unless his non-performance is intentional or due to his own gross negligence. 4. Because Leonard is in mora, Conrad is released from his obligation to perform even if his non-performance is intentional or due to his own gross negligence. Explanation
2 is the CORRECT answer. As this is a reciprocal agreement, the debtor remains entitled to the performance due to him even though the creditor refuses to accept performance. However, the obligation towards the creditor is not, as a result of mora creditoris, automatically regarded as having been fulfilled. QUESTION 109 Alex sells his car to Brian and his library of rare books to Chris. It is an express term of his contract with Brian that the car must be delivered by 6 June. The contract between Alex and Chris does not stipulate any date for the delivery of the books to Chris. Alex does not deliver the car to Brian or the books to Chris. Which ONE of the following statements is CORRECT in respect of the legal steps that may be taken against Alex? 1. Brian and Chris may, in principle, claim delivery of the car and the book respectively. 1 is the CORRECT answer. 2. Brian cannot claim delivery of the car but can only cancel the contract. 3. Chris is immediately entitled to cancel the contract for the sale of the books. 4. Brian cannot apply for an interdict to prevent Alex from selling the car to Edward at a higher price. Explanation 1 is the CORRECT answer. The innocent parties, Brian and Chris may claim specific performance, which is delivery of the car and the books. QUESTION 110 Connie wins a gift voucher from Shine Car Fixtures. In terms of the voucher, she is entitled to a free car wash. Since she does not own a car, she cedes her right to the car wash to her friend Barry. Which ONE of the following statements is CORRECT ?
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- Correct Answer, following statements, Johnny, Shine Car Fixtures