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MODULE NAME:
MODULE CODE:
BUSINESS LAW
BUSL6212/d/w
BUSINESS LAW
BUSL6222/w
COMMERCIAL LAW
COML6010/d
COMMERCIAL LAW
COML6311/d
ASSESSMENT TYPE:
TAKE‐HOME EXAM (PAPER ONLY)
TOTAL MARK ALLOCATION:
120 MARKS
TOTAL TIME:
21 HOURS (midnight to 9PM on the same day)
By submitting this assessment, you acknowledge that you have read and understood all the rules
as per the terms in the registration contract, in particular the assignment and assessment rules in
The IIE Assessment Strategy and Policy (IIE009), the intellectual integrity and plagiarism rules in
the Intellectual Integrity Policy (IIE023), as well as any rules and regulations published in the
student portal.
INSTRUCTIONS:
1.
Please adhere to all instructions. These instructions are different from what is normally
present, so take time to go through these carefully.
2.
Independent work is required. Students are not allowed to work together on this
assessment. Any contraventions of this will be handled as per disciplinary procedures in The
IIE policy.
3.
No material may be copied from original sources, even if referenced correctly, unless it is
a direct quote indicated with quotation marks.
4.
All work must be adequately and correctly referenced.
5.
You should paraphrase (use your own words) the concepts that you are referencing, rather
than quoting directly.
6.
Marks will be awarded for the quality of your paraphrasing.
7.
This is an open‐book assessment.
8.
Assessments must be typed unless otherwise specified.
9.
Ensure that you save a copy of your responses.
9.1 Complete your responses in a Word document.
9.2 The document name must be your name.student number.Module Code.
9.3 Once you have completed the assessment, upload your document under the
submission link in the correct module in Learn.
Additional instructions:

Calculators are not allowed.

For multiple‐choice questions, give only one (1) response per question. The marker will
ignore any question with more than one answer, unless otherwise stated. You should,
therefore, be sure of your answer before committing it to paper.

This assessment has Five Sections. You are required to answer All of these sections.

Answer All Questions. .
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ReferencingRubric
Providing evidence based on valid and referenced academic sources
is a fundamental educational principle and the cornerstone of high‐
quality academic work. Hence, The IIE considers it essential to
develop the referencing skills of our students in our commitment to
achieve high academic standards. Part of achieving these high
standards is referencing in a way that is consistent, technically
correct and congruent. This is not plagiarism, which is handled
differently.
Poor quality formatting in your referencing will result in a penalty of
a maximum of ten percent being deducted from the overall
percentage. Please note, however, that evidence of plagiarism in
the form of copied or uncited work (not referenced), absent
reference lists, or exceptionally poor referencing, may result in
action being taken in accordance with The IIE’s Intellectual
Integrity Policy (0023).
Required:
Technically correct referencing
style
Consistency
 The same referencing format
has been used for all in‐text
references / footnotes and in
the bibliography/reference list.
Technical correctness
 Referencing
format
is
technically correct throughout
the submission.
 The correct referencing format
for the discipline has been
used, i.e., either APA, OR
Harvard OR Law
 Position of the reference: a
reference is directly associated
with every concept or idea.
 For example, quotation marks,
page numbers, years, etc. are
applied correctly, sources in
the bibliography/reference list
are correctly presented.
Congruence between in‐text /
footnote referencing and
bibliography/ reference list
 All sources are accurately
reflected and are all accurately
included in the bibliography/
reference list.
In summary: the recording of
references is accurate and
complete.
Markers are required to provide feedback to students by indicating
(circling/underlining) the information that best describes the
student’s work.
Minor technical referencing errors: 5% deduction from the overall
percentage. – the student’s work contains five or more errors listed
in the minor errors column in the table below.
Major technical referencing errors: 10% deduction from the overall
percentage. – the student’s work contains five or more errors listed
in the major errors column in the table below.
If both minor and major errors are indicated, then 10% only (and
not 5% or 15%) is deducted from the overall percentage. The
examples provided below are not exhaustive but are provided to
illustrate the error.
Minor errors in technical correctness of
referencing style
Deduct 5% from overall percentage.
Example: if the response receives 70%,
deduct 5%. The final mark is 65%.
Minor inconsistencies.
 The referencing style is generally
consistent, but there are one or two
changes in the format of in‐text / footnote
referencing and/or in the bibliography.
 For example, page numbers for direct
quotes (in‐text) have been provided for
one source, but not in another instance.
Two book chapters (bibliography) have
been referenced in the bibliography in two
different formats.
Generally, technically correct with some
minor errors.
 The correct referencing format has been
consistently used, but there are one or
two errors.
 Concepts and ideas are typically
referenced, but a reference is missing
from one small section of the work.
 Position of the references: references are
only given at the beginning or end of every
paragraph.
 For example, the student has incorrectly
presented direct quotes (in‐text) and/or
book chapters (bibliography/reference
list).
Generally, congruence between the in‐text /
footnote referencing and the bibliography/
reference list with one or two errors.
 There is largely a match between the
sources presented in‐text / footnotes and
the bibliography.
 For example, a source appears in the text
/ footnote, but not in the bibliography/
reference list or vice versa.
In summary, at least 80% of the sources are
correctly reflected and included in a
reference list.
Major errors in technical correctness of referencing
style
Deduct 10% from the overall percentage.
Example: if the response receives 70%, deduct 10%.
The final mark is 60%.
Major inconsistencies.
 Poor and inconsistent referencing style used in‐
text / footnotes and/or in the bibliography/
reference list.
 Multiple formats for the same type of referencing
have been used.
 For example, the format for direct quotes (in‐text)
and/or book chapters (bibliography/ reference list)
is different across multiple instances.
Technically incorrect.
 The referencing format is incorrect.
 Concepts and ideas are typically referenced, but a
reference is missing from small sections of the
work.
 Position of the references: references are only
given at the beginning or end of large sections of
work.
 For example, incorrect author information is
provided, no year of publication is provided,
quotation marks and/or page numbers for direct
quotes missing, page numbers are provided for
paraphrased material, the incorrect punctuation is
used (in‐text); the bibliography/reference list is not
in alphabetical order, the incorrect format for a
book chapter/journal article is used, information is
missing e.g. no place of publication had been
provided (bibliography); repeated sources on the
reference list.
A lack of congruence between the in‐text / footnote
referencing and the bibliography.
 No relationship/several incongruencies between
the in‐text / footnote referencing and the
bibliography/reference list.
 For example, sources are included in‐text /
footnotes, but not in the bibliography and vice
versa, a link, rather than the actual reference is
provided in the bibliography.
In summary, at least 60% of the sources are
incorrectly reflected and/or not included in reference
list.
Overall Feedback about the consistency, technical correctness and congruence between in‐text / footnote referencing and bibliography:
......................................................................................................................................................................................................................
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Question 1
(Marks: 10)
Multiple‐choice questions: Select one correct answer for each of the following. In your answer
booklet, write down only the number of the question and next to it, the number of the correct
answer.
Q.1.1
Leon concludes a contract with Masixole to sell his shares in Pirates Pub. Leon is
(2)
married out of community of property without accrual.
What is the effect of concluding a contract with a person who is married out of
community of property?
(1)
The contract will be deemed to be valid and enforceable as the spouse has
full contractual capacity.
(2)
The contract will be voidable at the discretion of the other spouse as each
spouse has partial contractual capacity.
(3)
The contract would be considered as void and unenforceable if consent is
not given, as such person has no contractual capacity.
Q.1.2
Q.1.3
(4)
The contract is valid but unenforceable.
(5)
The contract is indefinite.
Private law as a category of South African national law, includes the following:
(1)
Procedural law, family law, property law, and law of persons.
(2)
Human rights law, law of succession, mercantile law, and law of persons.
(3)
Mercantile law, law of obligations, property law, and family law.
(4)
Civil procedure, law of persons, mercantile law, and property law.
(5)
The law of evidence, family law, property law, and constitutional law.
Public law does the following:
(1)
(2)
(2)
Regulates the legal relationship between the state and citizens of the
state.
(2)
Regulates the relationship between citizens.
(3)
Regulates the relationships between international organisations and non‐
governmental organisations.
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Q.1.4
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(4)
Regulates government procedures in procurement of state property.
(5)
Regulates the relationship between the state and public entities.
Repudiation occurs in the following instance:
(2)
(1)
The debtor causes the creditors performance to be delayed.
(2)
The debtor performs but such performance is contrary to the terms of the
contract.
Q.1.5
(3)
The debtor refuses to perform.
(4)
The creditor makes performance impossible.
(5)
The debtor performs earlier than on the agreed upon date.
The requirements for a valid contract include the following:
(1)
(2)
Consensus, contractual capacity, legal possibility, physical possibility, and
compliance with formalities.
(2)
Consensus, physical possibility, and compliance with formalities.
(3)
Consensus, compliance with formalities and intention.
(4)
Consensus, offer and acceptance, possibility, and compliance with
formalities.
(5)
Consensus, duress, legal possibility, contractual ability, compliance with
formalities and physical possibility.
Question 2
(Marks: 15)
Read the following statements. Indicate whether each statement is true or false and provide a
reason for your answer. No marks will be awarded for simply stating true or false without
providing a reason.
Q.2.1
Moral or ethical rules, together with legal rules, are sources of South African
(3)
law.
Q.2.2
The Supreme Court of Appeal is the highest court in all constitutional matters.
(3)
Q.2.3
Prosecutors are appointed to represent the state in civil trial proceedings
(3)
against persons who plead innocent.
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Q.2.4
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Appeal is court process that is followed when the losing party believes that
(3)
there have been procedural inadequacies in the hearing of the case in the court
of first instance.
Q.2.5
An insolvent person has no contractual capacity to conclude a contract. There
(3)
are no exceptions to this rule.
Question 3
(Marks: 30)
Identify the form of breach of contract that appears in the following scenarios and justify what the
most appropriate remedy would be in each instance.
NOTE: You will not be awarded marks for simply stating all remedies under each question. You are
required to select the most appropriate remedy in the situation, whether it is an agreed remedy or
a common law remedy. You are required to explain why the remedy that you have chosen is the
most appropriate in the situation.
Q.3.1
Mr Smith concludes a contract with Bob’s Builders CC to build a boundary wall
around his property for R40 000. It is agreed that the work will commence on 1
(5)
st
October 2022 and will be completed by 16th October 2022. Mr Smith pays a
deposit of R20 000 on 1st October and agrees to pay the balance of the contract
price on completion of the job. It is also agreed in the contract that breach will
entitle either party to cancel the contract with immediate effect and that the
amount of R500 per day will be deducted from the contract price for late
completion of the job. The builder’s staff start on the wall on 1st October as
agreed and the work is progressing according to schedule. However, halfway
through the job, the National Construction Worker’s Union calls a sympathy
strike in the building industry. As a result, the wall is only completed on 20th
October 2022.
Q.3.2
The Department of Public Works invited tenders for the construction of a new
(5)
municipal office block in Cape Town. Several tenders were submitted, and the
Department awarded the contract to the lowest tender from Bob’s Builders CC. A
letter was sent to Bob’s Builders CC stating that their tender is accepted. A week
a‐later, the Department received a report from the Director‐General
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recommending the second lowest tender, Quick Sticks Builders (Pty) Ltd. A new
letter of acceptance of the tender was then sent to Quick Sticks Builders and a
second letter was sent to Bob’s Builders CC stating that there had been an
administrative error and that their tender was, in fact, not accepted.
Q.3.3
Rita orders and pays for 50 kg of beef from Clatters Butchers in Gqeberha. The
(5)
parties agreed that Joe (the owner of the butcher shop) will deliver the meat at
Rita’s restaurant on Tuesday at 15h30. The gate is locked when Joe arrives, and
nobody is there to receive the order. Joe waits another hour, but nobody arrives
to receive the delivery of meat.
Q.3.4
Pendo books Hotel 323 as a venue for her upcoming wedding. She pays for a
(5)
white gazebo with ‘lights in jars’ and ‘vintage birdcage floral decorations’. David,
who is the hotel manager, decides that it is too much work to source the vintage
birdcages with floral decorations and opts for a cheaper option. He orders plain
coloured bird cages from a local pet store and decorates the white gazebo
himself. When the day of the wedding arrives and Pendo walks into the
reception, she bursts into tears and says that this has ruined her big day.
Q.3.5
David orders 5 cases of Flying Fish alcohol for the Hotel bar from Jane. Jane
(5)
agrees to deliver the order to David on 30th August. Jane arrives at the premises
to deliver the goods, but David is nowhere to be found. Jane leaves the goods
together he with an invoice with David’s bar manager. Two months later, Jane
has still not been paid. She phones David to ask about the payment and David
states that the alcohol made people sick and that he will not pay for an order
that made people sick.
Q.3.6
Bob’s Builders CC buys a ton of bricks from a manufacturer, Bricks‐a‐ton (Pty) Ltd,
(5)
in another province. Bob’s Builders has paid the full purchase price, however, the
national road that the trucks are meant to use to deliver the bricks to Bob’s
Builders CC has been badly damaged by recent flooding. The national road
authorities have announced that these roads will be closed to traffic for at least
the next six months. Bricks ‐a‐ton says that they have looked into having the
bricks delivered via train by Transnet Freight Rail, but it is ‘far too expensive’ and
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Bricks‐a ton did not factor such an expense into the contract. Therefore, they
want to terminate the contract based on supervening impossibility of
performance as a result of the roads being closed, which is out of the parties’
control.
Question 4
(Marks: 35)
While Jason is on holiday in Thailand, he meets Aroon who offers to sell Jason two tons of ivory to
resell back in South Africa. Jason gives Aroon his contact details and says that he will think about
it. Once Jason is back in South Africa, he receives a letter from Aroon that arrived in the post.
Aroon suspects that his cyber activities are being watched by an activist wildlife group and,
therefore, decides to send a letter ‘the old‐fashioned way’ to avoid it being intercepted. In the
letter, Aroon repeats the offer to sell Jason two tons of ivory and have it delivered to him in South
Africa. Although trading in ivory is illegal in South Africa, it is not illegal in Thailand. The letter
reaches Jason on 15th August. Jason reasons that he will not be doing anything wrong since the
ivory will be delivered to him in South Africa from Thailand where it is legal. Jason accepts by
posting his letter of acceptance on 19th August in South Africa. The letter reaches Aroon in
Thailand on 26th August.
Q.4.1
Describe the applicable theory that will be used to determine where and when the
(4)
contract came into existence.
Q.4.2
Where and when will the above contract be considered to have come into
(4)
existence?
Q.4.3
Describe the validity of this contract.
Q.4.4
Imagine that when Jason arrived back in South Africa on 15th August, he was the
(4)
one who phoned Aroon and asked if he could buy the two tons of ivory for
R100 000, to which Aroon agreed.
Q.4.4.1
Would your answer in Q.4.2 above be different in this instance? Explain.
Q.4.4.2
Consider instead that Aroon told Jason over the telephone on 15th
(6)
August that he would think about the price and get back to him later on,
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and then later that day sent Jason an email agreeing to the proposed
price of R50 000. Jason only reads his emails on 17th August.
Q.4.4.2.1
Describe the applicable theory in Q.4.4.2 above that would
(4)
be used to determine the date and place of the contract.
Q.4.4.2.2
When and where would the contract have come into
(4)
existence in the scenario described in Q.4.4.2 above?
Q.4.5
Jason transfers the money to Aroon’s account and waits for the ivory to be
(9)
delivered to his door by 30th November, as agreed.
By 15th December Jason has not received the delivery. He wants to sue Aroon for
breach of contract.
Advise Jason on any possible remedies that may be available to him.
Question 5
(Marks: 30)
Benjamin owns several properties in Gauteng. He is also the owner of a vacant shop space, Unit
263, located in Boulders Mall, 976 Jacques Street, Midrand. One day, Mendy is walking in
Boulders Mall and passes by the empty shop space. She sees a poster advertising the vacant space
to rent and she contacts Benjamin. The two then meet and agree that Mendy will lease and
occupy the property for a fixed duration of two years. At the end of the two‐year period, Mendy
must vacate the premises. They also agree that Mendy will use the property to operate a coffee
shop out of and that she will pay rental in the amount of R12 000 per month. The parties agree
further that an amount of R24 000 will be paid as the deposit to secure the lease. Benjamin’s
daughter, Ashley, drafts a contract of lease which reads as follows:
LEASE AGREEMENT
Entered into by and between Mendy Mental (hereinafter referred to as “the lessor”) and Benjamin
Fencamine (hereinafter referred to as “the lessee).
1
PURPOSE OF THE AGREEMENT
WHEREBY the parties agree to formulate a partnership in which they share: ownership of the property
and responsibility in the management of the property and share the profit and losses of the property.
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2
2.1
2.2
2.3
2.4
2.5
date;
DEFINITIONS
“Agreement” refers to this Lease Agreement entered into between the lessee and the lessor
“Leased Property” refers to one of Benjamin’s properties
“Lessee” refers to the owner of the property
“Lessor refers to the person leasing / renting the property”
“Lease amount” refers to the deposit amount payable by the lessor to the Lessee, on the agreed
3
COMMENCEMENT AND DURATION
This lease shall commence on 1st of August 2022 (“the commencement date”) and shall terminate upon
death of the parties.
4
4.1
4.2
4.3
RENT and DEPOSIT
The monthly rental payable by the lessor to the lessee shall be an amount of R16 000 per month.
The monthly rental referred to in 3.1 is not inclusive of Value Added Tax
The deposit that shall be paid to secure the property will amount to R 24 000.
5
OBLIGATIONS OF THE PARTIES
5.1




5.2
Duties of the Lessor
Duties to follow instructions from the lessee.
Duty of reasonable care and skill.
Duty to avoid a conflict of interest.
Duty not to delegate.
Duties of the Lessee
 To refrain from unreasonably interfering with the lessor’s work
 Duty of confidentiality
 Duty not to make a secret profit
6
TERMINATION
This contract can only terminate upon the death of one of the parties.
Signature of the lessee
‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Signature of the lessor
‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Benjamin’s daughter sends the lease agreement to Mendy. Mendy, however, claims that the lease
agreement does not capture the aspects that she and Benjamin had agreed on during their
meeting and does not align with the essential elements of a contract of lease. Mendy approaches
you for advice.
Analyse the facts above together with the contents of this lease agreement. Considering the
essential elements of a contract of lease, identify all the errors that were made in the drafting of
this lease agreement.
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Your answer should touch on the following aspects:

The purpose and essentialia of the agreement;

The description of the parties;

The details of the property cited;

Duties of both the lessor and lessee;

The circumstances under which the contract of the lease would commence, its duration,
and termination;

Issues discussed during Benjamin and Mendy’s meeting and whether they have been
correctly captured in the lease agreement.
END OF PAPER
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