Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CML1001F: Contract law > The law of contract > Flashcards

The law of contract Flashcards

You may prefer our related Brainscape-certified flashcards:
MBE flashcards MPRE flashcards Civil Procedure 1L flashcards
1
Q

What are the requirements to enter into a valid contract? [2]

A
  1. Contractual Capacity
  2. Intention to contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are factors that can render a contract void, voidable or unenforceable? [5]

A

-Mistake
-Misrepresentation, duress, undue influence
-Illegality
-Impossibility of performance
-Formalities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are your rights and duties under the contract and how do you fail to perform your duties? [2]

A
  • As stated in the contents of the contract
    -Breach of contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who has full CONTRACTUAL CAPACITY?

A

On the coming of age, i.e. on reaching his/her 18th birthday, an unmarried person attains majority and legally acquires full contractual capacity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

WHAT ‘LIMITS’ CC? [3]

A

a) Age (minors)
b) Marriage
c) Insolvency; Mental Illness; Intoxication.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who are married persons? [3]

A

a) ICOP
b) OCOP with accrual
c) OCOP without accrual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Who are minors?

A

Children under 18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Do minors have contractual capacity?

A

i. 0-7 = NO CC (called infans)
ii. 7-18 = Limited (these children are called pupillus)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Can minors effect contract with assistance?

A

= Bound unless ‘inherently prejudicial’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Under common law, what is it called when a minor enters a contract without assistance and are they bound by it?

A

a ‘limping’ contract = Major bound BUT minor’s parents can: 1. Ratify or 2. Repudiate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does ratify mean?

A

sign or give formal consent to make the contract valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does repudiate mean?

A

Refuse to accept; reject

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Under the consumer protection act, can minors enter a contract without assistance?

A

Voidable at option of the minor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is the children’s act of 38 of 2005? [3]

A

parent or other person (guardian) of a child must:
a.) administer and safeguard the child’s property and property interests;
b.) assist or represent the child in administrative, contractual and other legal matters; orc.) give or refuse any consent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the consumer protection act 68 of 2008?

A

Agreements with persons lacking legal capacity are voidable at the option of the consumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

contracts with a minor can be made void if at the time the agreement was made the consumer was an ____________ minor

A

unemancipated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

True or false, contracts with a minor can be made void if he agreement was made without the consent of an adult responsible for that minor

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Contracts with a minor can be made void if; the agreement has not been ________

A

Ratified

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What exception can give a minor full contractual capacity?

A

A minor becomes a major on marriage, regardless of his/her age.

20
Q

What are the issues with “married persons”? [2]

A

A) Property division on termination marriage.
B) Contractual capacity of spouses during marriage.

21
Q

In ICOP, (Joint ownership assets + Joint liability debts!), what happens to property on termination of marriage?

A

On termination (death or divorce): 50/50 split, excluding damages awarded one spouses for non-financial loss; inheritance/donations excluded from joint estate by testator/donor.

22
Q

What is the effects of marriage in ICP? [4]

A
  1. The assets/liabilities belonging to each spouse before the marriage are merged into a
    single, joint estate upon marriage.
  2. Property acquired during the marriage becomes jointly owned. Liabilities acquired
    during the marriage become joint liabilities.
  3. Upon dissolution of the marriage, by death or divorce, the joint estate is divided
    and each is entitled to half. It could be a negative half due to debt.
  4. Upon insolvency, both spouses are declared insolvent by the court
23
Q

What is happens to property on insolvency?

A

Insolvency: joint estate and separate estate (if any) both spouses assets fall into insolvent estate!

24
Q

In marriage ICOP, what happens in terms of contractual capacity? [2]

A

-Both spouses have full CC iro joint estate
-BUT: Permission needed for some contracts

25
Q

What permission is required by spouses in ICOP?

A

Types of permission: verbal, written, written + 2 witnesses. NB = s15 Matrimonial Property Act!

26
Q

In ICOP, what requires verbal verbal consent? [3]

A

i. Sell or pledge furniture or other effects common household
ii. Receive any money, income, pension due to other spouse by virtue of their profession, trade or business
iii. Receive proceeds of an insurance policy or annuity for other spouse

27
Q

In ICOP, what requires written consent? [2]

A

i. Sell or pledge jewelry, coins, stamps, paintings or other assets held mainly as investments
ii. Sell, cede or pledge shares, stocks, debentures, insurance policies *

28
Q

In ICOP, what requires you to have a written consent and 2 witnesses? [4]

A

i. Sell immovable property or mortgage/grant servitude/other real right over immovable property
ii. Buy immovable property in installments*
iii. Buy goods on credit under National Credit Act *
iv. Stand surety for third party *

29
Q

True or false, For exceptions, No permission needed if * contract entered into by one spouse inordinary course trade, profession or occupation

A

True

30
Q

When is permission not needed?

A

IF CONTRACT NOT LISTED IN S 15 MPA (Matrimonial properties act), NO PERMISSION NEEDED!

31
Q

Presumption: all persons presumed to have full _______ capacity.

A

Mental

32
Q

When is someone seen to be mentally ill/incapable?

A

All persons are presumed to be sane/of sound mind, unless they have been
declared mentally ill in terms of the Mental Health Care Act by the high court

33
Q

Exception: if person declared incapable managing own ______ by Court, then onus on person alleging _______(i.e. on person seeking to uphold the contract).

A

affairs
capacity

34
Q

What states that you have mental capacity when making the contract? [3]

A

-At time
-contract concluded
-question of fact

35
Q

When are you seen to “lack capacity”?

A

Lack capacity if “incapable of properly understandingthe nature of the contract and appreciating the rightsand obligations created by the contract”. (i.e. fulllegal implications of actions)

36
Q

Effect of contract concluded by mentally ill person, insolvent or intoxicated person: =______.

A

VOID

37
Q

True or false, Insolvency is a question of fact (not of law).

A

FALSE, it is a question of law (not fact). Notinsolvent unless High Court has made an order declaring you to be insolvent.

38
Q

When is someone declared insolvent?

A

Once the court sequestrates someone they are insolvent

39
Q

What are the contractual capacity exceptions for someone that is insolvent? [4]

A
  1. He cannot dispose of any assets in the insolvent estate. not his anymore, the
    trustee is keeping it to divide it between the creditors he couldn’t pay).
  2. He cannot, without the consent of the trustee, enter any contract which may
    negatively/adversely affect the estate.
  3. He may not, without the consent of the trustee, be involved in the business of
    a trader who is a general dealer (e.g. Pick ‘n Pay) or manufacturer (e.g.
    builder).
  4. He cannot work as a chartered accounting or director of a company
40
Q

What is intoxication a question of in terms of contracts?

A

A question of fact (not law).

41
Q

Why is intoxication a reason for a contract to be made void?

A

The mere fact that someone is more easily manipulated when slightly intoxicated
will not make the contract void.

42
Q

In marriage OCOP or OCOP with accrual, what is required?

A

anti-nuptial contract (ANC)
The ANC must be signed before a notary public and 2 witnesses.

43
Q

What is the effect of marriage OCOP?

A
  • Each party retains as their own separate estate what they acquired before and during the marriage.
  • Each party remains liable for debts acquired before or during the marriage. They are not liable for each other’s debts.
  • Upon dissolution of the marriage, by death or divorce, each party retains their separate
    estate. They each retain their own assets and are liable for their own debts.
  • When the marriage dissolves neither party has a claim against each other.
44
Q

What is the effect of marriage OCOP with accrual?

A

-Exactly the same as out of community of property
-The spouse whose estate has shown the smaller accrual (growth) during the marriage has the right to half the difference between the two accruals at dissolution.

45
Q

What does the contractual capacity look like in OCOP and OCOP with accrual? [3]

A
  1. Each party has unrestricted power/full contractual capacity with regard to their own
    estate.
  2. Neither party/spouse has any power with regard to the other estate.
  3. They are not liable for each other’s debts with one exception, they are jointly liable for
    household necessaries.

CML1001F: Contract law (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions