Introduction

Question 1

Essential elements of a contract of sale

Answer 1

• intention of seller to sell and intention of buyer to buy
• the thing sold
• purchase price

Question 2

Requirements in regard to the nature of the contract

Answer 2

• buyer and seller must reach consensus through essentialia for contract to be valid
• intentions of buyer and seller must be revealed
• court gives effect to true intentions of parties (not pretence)
• no stipulation of transfer of ownership = null and void contract of sale

Question 3

Requirements regarding the thing being sold

Answer 3

• the thing must be determined or determinable @ conclusion of contract
• if description of “thing” is too vague = null and void contract of sale

Question 4

How res aliena affects validity of contract

Answer 4

• where seller is not the owner of the thing sold, contract of sale is still valid
• nemo plus iuris rule –> one can only transfer rights which they have, they cannot transfer more than they have

Question 5

Buyers recourse in res aliena (good vs bad faith)

Answer 5

Good faith
- owner can claim property from buyer only if it still exists
Bad faith
- owner can claim property from buyer
- even if it no longer exists, owner may claim value of property from buyer

Question 6

Requirements regarding purchase price

Answer 6

• agreement on price
• price is certain
• must be of acceptable currency

Question 7

Influence of CPA on purchase price

Answer 7

• suppliers must only enter into agreements where the purchase price is just, reasonable and fair
• price of goods must be adequately displayed and supplier can’t charge higher price than that displayed
• supplier is bound to lowest price if 2 different prices are displayed (unless obvious error or tampering of price occured)

Question 8

Two reasons for formalities in contract of sale

Answer 8

• contract is only valid after formalities are complied with

- serves as proof of contract between parties

Question 9

Consequences of non-compliance with formalities

Answer 9

• contract is null and void = no legal obligation
• cannot claim counter-performance from other party if other party performed fully or partially
• party who delivered performance may reclaim performance
• if both parties performed when formalities were not complied with (null + void contract) contract is considered valid.

Question 10

How does the true owner of a thing exercise rei vindicatio?

Answer 10

• exercises a vindicatory action where the true owner is, in terms of common law, entitled to claim their property from the buyer

Question 11

What are the formalities in the case of contracts for sale of land?

Answer 11

• No alienation of land after the commencement of this section shall (subject to provision of section 28) be of any force or effect unless it is contained in a deed of alienation signed by the parties thereto or by their agents acting on their written authority