MANGOSUTHU UNIVERSITY OF TECHNOLOGY
ASSESSMENT 1: TEST
MODULE : COMMERCIAL LAW FOR ACCOUNTANTS I
MODULE CODE : CLAW100/CLLA100/CLAA100
DATE : 20 MAY 2022
TIME : 12:00 – 14:00
EXAMINERS : MRS DELOMONEY, MISS MEMELA, MR
DHUMBURA
TOTAL MARKS : 50
INSTRUCTIONS : ANSWER ALL QUESTIONS
SECTION A [10 Marks]
QUESTION 1
Multiple Choice 1 marks per question (10 Marks)
QUESTION 1.1
Identify the CORRECT statement:
A. Legislature is the written down part of our law and also is the most important source of
law.
B. Customary law is not a recognised source of South African law.
C. The Constitution is not the supreme law of the land.
D. The Constitutional Court can only hear civil matters. (1)
QUESTION 1.2
Indicate the INCORRECT statement:
Legislation consists of:
A. Acts or Statutes.
B. Unwritten rules passed down from generation to generation by word of mouth.
C. The Constitution of the Republic of South Africa.
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D. Municipal by-laws. (1)
QUESTION 1.3
Indicate the INCORRECT statement:
A. A real right is enforceable against the whole world.
B. The South African legal system is based on Roman-Dutch and French law.
C. The Law of Succession falls under Private Law.
D. The Supreme Court of Appeal hears civil and criminal appeals. (1)
QUESTION 1.4
Mercantile Law can be described as
A. A contract of sale.
B. Treaties or international conventions.
C. Regulates power of the state over individuals.
D. Law relating to areas of business or commercial fields. (1)
QUESTION 1.5
Where legislation and common law are in conflict which law prevails?
A. Common law prevails.
B. Legislation prevails.
C. The matter is referred to the Constitutional Court for a decision.
D. The matter is referred to Parliament for a decision. (1)
QUESTION 1.6
Which of the following is the best definition for ratio decidendi of a case
A. The final order of the court is binding on the immediate parties of the case.
B. The legal reasoning upon which the decision in a case was based.
C. Anything said about the case in passing.
D. The doctrine of precedent “to stand by a decision” (1)
QUESTION 1.7
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Which of the following correctly reflects the doctrine of judicial precedent
A. Cases with similar facts should be decided in a similar manner.
B. All previous decisions made by any court in the judiciary must be followed.
C. Cases of different facts should be decided in a similar manner.
D. Cases must be similar to previous decisions or they cannot be heard. (1)
QUESTION 1.8
Which of the following describes private law situations?
A. The Constitutional Court decides that abortion is legal.
B. A woman kills her husband.
C. The Minister of Police sues a driver for damages because the driver negligently failed to
stop at a traffic light and collided with a police vehicle. The damage to the police vehicle
is R50 000.
D. a), b) and c) (1)
QUESTION 1.9
Raymond, who is turning 18 years old next month in July, buys an electric guitar for R10 000
in June. He does not tell his parents. In August, his parents discover the guitar and they
insist that he return it. Which statement is correct?
A. Raymond’s parents have not approved the contract, and he must therefore return the
guitar.
B. This is an invalid limping contract.
C. Raymond has ratified his contract himself.
D. This contract is invalid, as one of the requirements for a valid contract is missing. (1)
QUESTION 1.10
Jerry is 16 years old. Her mom and dad decide she needs a new laptop for school, so they buy
her one from a shop called Computers, etc. When they bring it home, Jerry decides that it is
too slow and unsuitable for school. Which statement is correct?
A. The contract is valid as parents may enter into a contract for their minor daughter without
her consent.
B. The contract is invalid as Jerry, a minor, has not consented to the sale.
C. This is a limping contract and it is only partially valid.
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D. Jerry must give back what she has left. (1)
SECTION B [30 MARKS]
QUESTION 2 (10 marks)
STATE WHETHER THE FOLLOWING STATEMENTS ARE TRUE OR FALSE
2.1 Customary law is valid even if it is not inline with the constitution as it as the law of
indigenous people. (1)
2.2 A losing party in a case has the right to appeal against a decision of a Magistrates’ Court
or the High Court. (1)
2.3 New evidence is necessary if an unsatisfied party wants to take the matter to an Appeal
Court. (1)
2.4 Unjustified enrichment is a remedy available to a contracting party if they want to recover
an object. (1)
2.5 A 6 year old child has limited contractual capacity and may enter into a contract with the
assistance of a guardian. (1)
2.6 Moral rules are rules that everyone in a society must obey and if not followed, citizens
may face punishment from the state. (1)
2.7 In chiefs and Headmen’s courts, litigants may have legal representation such as lawyers
or advocates. (1)
2.8 The Supreme Court of Appeal is a court of first instance. (1)
2.9 The law of persons explains the rules about being a legal subject of the country. (1)
2.10 The law of evidence, the law of civil procedure and administrative law are three aspects
of procedural law. (1)
Question 4 (10
marks)
Banele Dlamini is driving a new BMW on campus on the 1 May 2022. He is very happy and
is showing off his “new wheels” and he has his two friends in the back seat of the car. He and
Lungani meet with an accident as Lungani Pillay is trying to leave campus and Banele gets
very angry and they both get into an argument and Banele and his friends hit Lungani. The
damages to Banele’s car is extensive and he gets angry – the mechanic says the damages
amounts to R200 000. Lungani also has to get medical attention as his injuries are bad – his
medical bills amount to R19 500.
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Based on the knowledge you have learnt in Commercial Law answer the following questions:
3.1. Would the above scenario be an example of a violation of a legal rule or moral rule? (1)
3.2. Which court/s would have jurisdiction to hear these matters? In your answer, state
whether the court is an inferior or a superior court.
(2)
3.3. Name and explain the 2 different cases that can be opened against Banele from this one
incident. (4)
3.4. Write down the 2 relevant case citations that would be applicable for this case. (2)
3.5. State two important facts about the court which would have jurisdiction to hear
Lungani’s matter.
(1)
QUESTION 4 (10marks)
4.1. What is the difference between an appeal and review? (2)
4.2. What is the difference between the balance of probabilities and beyond a reasonable
doubt? (2)
4.3. Explain what the difference is between public law and private law? (2)
4.4. Explain what the difference is between an action and an application type proceeding. (2)
4.5. Explain the difference in contractual capacity for minors and married people. (2)
SECTION C [10 MARKS]
QUESTION 3 (10
marks)
Sanelisiwe is a 16 year old model who has been working for a modeling agency for the past
two years. The money she has been making has allowed her to afford her own school fees and
rent her own flat. She has recently passed her learners license and has decided to purchase a
new vehicle. Sanelisiwe contacts a local dealership ‘PreLovedCarz’ owned by Phetho and
they arrange to meet the next day. Upon arrival, Sanelisiwe sees a Corolla Toyota she really
likes and decides to buy the car.
3.1 Discuss the validity of the contract above. (2)
3.2 What kind of contract is this referred to in law? (1)
3.3 If Sanelisiwe breaches her contract with the dealership, are there any remedies available
to the dealership? Discuss (6)
3.4 What would happen if Sanelisiwe’s parents tell her to return the vehicle? (1)
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END OF PAPER
