HIGHER EDUCATION PROGRAMMES
MEMORANDUM
Academic Year 2025: January - June
Formative Assessment 1: Law for Supply Chain Managers
(HCML130-1)
NQF Level, Credits: 5, 16
Weighting: 20%
Assessment Type: Short and Long Questions
Educator: Georgina Roskell
Examiner: Janneke Steyn
Due Date: 27 March 2025
Total: 100 Marks
Instructions:
• This paper consists of six (6) questions.
• It is based on Units 1-4 of your textbook.
• All questions are compulsory.
• Your assessment must be typed using:
o Font: Arial
o Font size: 12
o Line spacing: 1.5
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The following Learning Outcomes are assessed in this assessment:
Unit 1:
• Identify the key organisational components of the constitutional state and
illustrate their respective roles in relation to the South African state.
• Outline the main sources of South African law.
• Distinguish between the different sources of South African law by identifying
relevant distinguishing factors.
Unit 2:
• Explain the main divisions of law.
• Indicate, with reference to real-world examples, how the typical divisions of
law apply in the South African context.
Unit 3:
• Describe the requirements for the creation of a valid contract.
Unit 4:
• Discuss the conditions under which a contract can be terminated.
• Identify the conditions under which contract terms may be varied.
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Question 1 (6 marks)
South Africa has three (3) organs of state. Identify these three (3) organs and briefly
describe their functions.
Answer: Unit 1 (Chapter 1; Page 5).
• The legislature (Parliament) ✔ is the highest elected law-making body and
makes legislation. ✔
• The executive, ✔ consisting of the President and all the ministers of the various
state departments, makes policies that put legislation into practice or result in
new laws. ✔
• The judiciary, ✔ consisting of the courts, is tasked with interpreting and applying
law to cases that serve before it. ✔
The following Learning Outcome is assessed in this question:
• Identify the key organisational components of the constitutional state and
illustrate their respective roles in relation to the South African state.
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Question 2 (11 marks)
South Africa’s sources of law are categorised into two (2) main categories. Identify
these two (2) categories and list all sources that fall under each category.
Answer: Unit 1 (Chapter 1; Page 7).
The primary sources ✔ of South African law are:
• the Constitution; ✔
• legislation; ✔
• common law; ✔
• customary law; ✔
• custom (trade practices); ✔ and
• judicial precedent. ✔
The secondary sources ✔ of South African law are:
• international law; ✔
• foreign law; ✔ and
• modern writing. ✔
The following Learning Outcomes are assessed in this question:
• Outline the main sources of South African law.
• Distinguish between the different sources of South African law by identifying
relevant distinguishing factors.
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Question 3 (31 marks)
Read the fictitious scenario and answer the questions that follow:
Musi’s son, Sipho, recently passed away. After the funeral, a family dispute arose
regarding who will inherit from Sipho’s estate. Musi wants to inherit Sipho’s vehicle,
but so does Sipho’s sister, Agnes.
Due to the conflict between Musi and Agnes, and in a fit of rage, Agnes slams Musi’s
front door, breaking the glass window in the door.
Required:
3.1. Identify South Africa’s two (2) main branches of substantive law, as well as the
subtypes of each branch. (15 marks)
Answer: Unit 2 (Chapter 2; Pages 32-33).
• The two branches of substantive law are public law ✔ and private law. ✔
• Public law includes constitutional law, ✔ administrative law, ✔ criminal law,
✔ law of taxation ✔and labour law. ✔
• Private law includes the law of persons, ✔ family law, ✔ law of succession,
✔ law of property, ✔ intellectual property, ✔ mercantile law, ✔ and law of
obligations, ✔ which may include law of contract, law of delict and law of
unjustified enrichment. ✔ (Award one (1) mark for listing either law of
contract, law of delict or law of unjustified enrichment).
The following Learning Outcomes are assessed in this question:
• Explain the main divisions of law.
• Indicate, with reference to real-world examples, how the typical divisions of
law apply in the South African context.
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3.2. With reference to your answer in question 3.1 above, identify the three (3)
areas of law most applicable to the scenario and discuss their application in
the specific context. (16 marks)
Note to grader:
• Use discretion as students’ answers may differ.
Answer: Unit 2 (Chapter 2; Pages 32-33).
• Law of succession ✔ is applicable in the case of inheritances ✔ as well as a
deceased person’s assets and liabilities ✔. Therefore, the law of succession
will apply to the deceased estate of Musi’s son and the inheritances that may
follow. ✔
• Criminal law ✔ is applicable when one person damages another person’s
property. ✔
o Therefore, criminal law may apply to Agnes breaking the front door
window of Musi’s house. ✔
• Law of obligations ✔ is applicable in disputes involving personal rights ✔ that
have a proprietary value. ✔
o Specifically, the law of delict ✔✔ (award two (2) marks for students
identifying that this component of the law of obligations applies) deals
with the payment of compensation to persons who sustained harm,
loss, or damage, ✔ as a result of another person’s negligent or
reckless actions. ✔
o Therefore, the law of obligations in the form of the law of delict may
apply to Agnes ✔ causing damage to the property of Musi ✔ by
breaking Musi’s front door window.
The following Learning Outcomes are assessed in this question:
• Explain the main divisions of law.
• Indicate, with reference to real-world examples, how the typical divisions of
law apply in the South African context.
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Question 4 (19 marks)
Read the fictitious scenario and answer the questions that follow:
Prelene is a seven (7) year-old girl. She has agreed to sell her handmade dollhouse
to Eva, her neighbour, for R5 000.00 since Eva’s daughter wants a dollhouse for her
birthday.
The date and time were set for the handover of the money and the dollhouse and
both parties were satisfied with this arrangement. At this meeting, Eva was ready to
hand over the cash. However, Prelene told Eva that she no longer wanted to sell the
dollhouse.
Eva is upset and approaches you for advice.
Required:
4.1. List the requirements for a valid contract. (6 marks)
Answer: Unit 3 (Chapter 4; Page 53).
The requirements for a valid contract are: capacity to contract, ✔ an agreement, ✔
legality of the contract, ✔ possibility of performance, ✔ formalities ✔ and certainty. ✔
The following Learning Outcome is assessed in this question:
• Describe the requirements for the creation of a valid contract.
4.2. With reference to your answer in question 4.1 above, explain to Eva which
validity requirement for a valid contract would most likely prevent her from
enforcing the agreement against Prelene. (6 marks)
Answer: Unit 3 (Chapter 4; Page 53).
The relevant validity requirement is capacity to contract. ✔
• Prelene is only seven (7) years old ✔ and is a minor. ✔ Minors do not have the
capacity to contract on their own. ✔
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• Eva cannot conclude a valid contract with Prelene ✔ as Prelene does not have
the capacity to do so by herself. ✔
The following Learning Outcome is assessed in this question:
• Describe the requirements for the creation of a valid contract.
4.3. Assume for purposes of this question that Prelene was assisted by her guardian
when concluding the arrangement with Eva.
Briefly explain to Eva whether a valid contract came into force. (7 marks)
Answer: Unit 3 (Chapter 4; Pages 53-54).
Theory:
A minor between the ages of 7 and 18 is known as popullis ✔ and has limited capacity
to contract. ✔ Minors above 7 years old can thus enter into valid contracts if they are
being assisted by their guardian. ✔
Application:
Because Prelene was assisted by her guardian in the scenario, ✔ the contract with
Eva would be valid, ✔ and Eva has options for recourse against Prelene ✔ due to
Prelene’s disregard of the terms of the agreement. ✔
The following Learning Outcome is assessed in this question:
• Describe the requirements for the creation of a valid contract.
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Question 5 (19 marks)
Read the fictitious scenario and answer the question that follows:
Samuel concluded a contract of employment with “V’s Painters”, in terms of which
he is appointed as a professional painter who will assist with the painting of houses
and other buildings.
In addition, Samuel also concluded a separate and private agreement with Vuyo,
the head of “V’s Painters”. In terms of this agreement, Samuel would pay Vuyo
R100 000.00 for Vuyo to erect a fence on Samuel’s property. Samuel would render
payment upon the completion of the fence by Vuyo.
On the day that Vuyo completes the fence on Samuel’s property, Samuel tragically
dies because of a fall at work, while painting a skyscraper.
Vuyo is concerned about the R100 000.00 owed to him as well as losing Samuel as
an employee at his company.
Required:
Identify the way in which the two (2) agreements in the above scenario came to an
end, and fully discuss the consequences thereof with reference to the type of rights
involved in each agreement.
Note to grader:
• Discretion is allowed to the grader as students’ answers may differ.
Answer: Unit 4 (Chapter 13; Page 211).
How did agreements come to an end:
The two (2) agreements between Samuel and V’s Painters ✔ as well as between
Samuel and Vuyo ✔ came to an end by means of Samuel’s death. ✔
Theory:
In the event of a contract being terminated by death, it is important to consider whether
a contract was of a personal nature or not. ✔
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If of a personal nature, it involves personal rights which cannot be transferred ✔ to the
deceased estate and the contract will terminate automatically. ✔ The executor of the
deceased’s estate will not be able to step into the shoes of the deceased ✔ and render
services to the employer on behalf of the deceased. ✔
In the event of a contract not having personal rights as a consequence, such rights
and obligations could be transferred to the deceased estate ✔ and may be enforced
by or against the executor ✔ of the deceased estate.
Application:
Samuel’s employment contract with V’s Painters ✔ will be terminated automatically ✔
by his death due to it concerning personal rights. ✔ The executor of Samuel’s
deceased estate will not be able to step into Samuel’s shoes and replace him in
respect of his employment contract. ✔
Samuel’s contract with Vuyo for the fence being built on his property ✔ does not
involve personal rights. ✔ Therefore, Samuel’s deceased estate will be liable to
reimburse Vuyo for the fence that has been completed, as per the contract ✔ The
executor of Vuyo’s deceased estate will be responsible for handling the claim against
Samuel’s estate. ✔
Conclusion:
Vuyo, therefore, will be paid R100 000.00 from Samuel’s deceased estate. ✔
The following Learning Outcome is assessed in this question:
• Discuss the conditions under which a contract can be terminated.
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Question 6 (14 marks)
Read the fictitious scenario and answer the question that follows:
Emily has experienced numerous housebreaking incidents and wants to improve
the security at her home.
Raj and Emily recently concluded a written agreement whereby Emily will pay Raj
R5 000.00 for the installation of security cameras and other security systems at her
premises within the next five (5) days.
Raj subsequently discovered the security cameras are on special due to the
promotion of a new brand, and the agreed-upon price may now be changed. The
special priced cameras will also take a month longer to arrive.
Since the parties are friends and neither wants to inconvenience or exploit the other,
Raj has shared the news with Emily, and they wish to change the terms of their
written contract to only R3 000.00 for the installation. They are also willing to
postpone the installation date until the cameras arrive.
Required:
6.1. With reference to the scenario, discuss the theoretical steps to vary a contract
and the rights and duties related thereto. (6 marks)
Note to grader:
• Discretion is allowed to the grader as students’ answers may differ.
Answer: Unit 4 (Chapter 12; Page 200).
Variation of a contract is also referred to as changing ✔ of the rights and duties of a
contract. ✔
Contracting parties are generally free to vary or change a contract as they wish. ✔
There is a required formality for a variation to be in writing in two instances. ✔ The first
is when a law provides for that type of contract to be in writing, then any changes to
the terms of that contract also have to be in writing. ✔ The second is when parties
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agree in a written contract that verbal changes to that contract will not be valid and
that any variation of the contract has to be in writing. ✔
The following Learning Outcome is assessed in this question:
• Identify the conditions under which contract terms may be varied.
Required:
6.2. Discuss how variation applies in the scenario and the steps the parties would
need to take to satisfy the legal requirements applicable. (8 marks)
Note to grader:
• Discretion is allowed to the grader as students’ answers may differ.
Answer: Unit 4 (Chapter 12; Page 200).
Raj and Emily may change or vary the terms of their contract as they wish. ✔ This
includes changing the price from R5 000.00 to R3 000.00 and changing the date of
the installation. ✔
However, the first step in changing terms would be to see if their contract contains a
specific provision concerning whether they are allowed to make changes without it
being in writing. ✔ If their contract determines that the changes thereto must be in
writing then any changes would be invalid ✔ if only agreed to verbally. ✔
Since the contract is in writing ✔ it would make sense to agree to the variation in writing
as well ✔ and may be the safest option for the parties to do so to be sure of their rights
and obligations. ✔
The following Learning Outcome is assessed in this question:
• Identify the conditions under which contract terms may be varied.
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