Contract

Question 1

ASPECTS

Answer 1

📌 Parties must intend their agreement to be legally binding
📌 Both parties must be legally able to enter into a contract
📌 The contract must be entered into voluntarily, without threat or force from another person

Question 2

LEGAL IMPLICATIONS

Answer 2

📌 Once a contract has been made, both parties have certain rights and duties
📌 Some of the rights and duties are stated in the contract
📌 Other rights and duties are implied b y the nature of the contract
📌 If the product is faulty, the contract has been breached

Question 3

CONTRACT BREACH

Answer 3

📌 When one of the parties fails to fulfill their responsibilities
📌 The contract was broken for one than one or more of the following reasons:
1. There are errors in the contract
2. One of the parties was forced to sign the contract and did not agree to the terms

Question 4

TYPES OF CONTRACTS

Answer 4

📌 Employment
📌 Insurance
📌 Rental
📌 Hire purchase

Question 5

EMPLOYMENT CONTRACT

Answer 5

📌 Is an agreement between the employer and the employee and is legally binding
📌 It sets out what the employer will provide according to labour laws and in terms of benefits
📌 It also regulates the behavior of the employee in the workplace

Question 6

LEGISLATION

Answer 6

📌 Labour Relations act 
📌 Basic conditions of employment act
📌 Employment equity act 
📌 Skills development act
📌 Unemployment insurance act

Question 7

REASONS for the TERMINATION of an EMPLOYMENT CONTRACT

Answer 7

📌 Resignation
📌 Dismissal
📌 Retirement
📌 Retrenchment

Question 8

INSURANCE CONTRACT

Answer 8

📌 An insurance policy is a contract taken out by a person or business in order to manage a risk

Question 9

TYPES OF INSURANCE CONTRACT

Answer 9

PERSONAL INSURANCE

1. Life insurance ➡️ long-term insurance to take care of dependants if you die
2. Home and contents ➡️ short-term insurance in care of fire, theft or flood
3. Car insurance ➡️ in case of a accident or theft of a car
4. Medical insurance ➡️ in case of illness

BUSINESS INSURANCE

1. Workers compensation ➡️ in case workers being injured on the job

Question 10

HIRE PURCHASE

Answer 10

Is a method of buying goods where pays a deposit and immediately takes possession of the goods, but not ownership of the goods

Question 11

RIGHTS AND RESPONSIBILITIES of LANDLORDS and TENANTS

Answer 11

LANDLORD

1. Must give the tenant occupation and control of the property on the agreed data
2. Must not disturb the tenant unreasonably

TENANT

1. Must pay on time
2. Must use the property in a reasonable manner for the purpose for which it was let