HLWC200 Commercial Law Assessment Essay Solutions
Assessment Detail:-
- Number of Words: 4000
Question 1
Read the fictitious scenario and answer the questions that follow.
Angela drives past a vacant property with a ‘to let’ sign. Angela calls the number on the sign, and he speaks to Moses, the owner of the property. Moses agrees to let the premises out to Angela for R9000 per month.
Required:
- Explain whether the agreement between Angela and Moses constitutes a contract of sale.
- Assuming that Moses had placed a ‘for sale’ sign instead of a ‘to let’ sign.
Required:
Explain whether Moses would have been able to conclude an oral agreement with Angela regarding the sale of the vacant property.
Read the fictitious scenario and answer the questions that follow.
Evander and Cassius enter a contract for the sale of 15 pairs of boxing gloves that Evander would like to purchase from Cassius. They decide to contract remotely due to COVID- 19 concerns. Their correspondence to each other is done electronically via email. The contract is concluded electronically by way of email and the use of digital signature.
Required:
Is the transaction between Evander and Cassius valid and legally binding? Refer to relevant legislation in your answer.
Question 2
Read the fictitious scenario and answer the question that follows:
Stacy (the lessor) enters into a one-year lease agreement with Oliver as the lessee. The lease agreement is signed on 1 February 2021 and one month later, Oliver’s employer requires him to relocate to another province. You read the lease agreement and find clause 7.8, which states that, in the event that you want to terminate the lease before its expiry, you will be liable to pay the remainder of the rent.
Required:
With reference to the Consumer Protection Act, fully advise if Oliver is liable to pay Stacy, the remainder of the Refer to relevant legislation.
After the lease agreement between Stacy (the lessor) and Oliver (the lessee) was terminated, Oliver decides not to pay rental for the final two months before moving out. As Oliver packs his belongings, Stacy shows up and takes valuable items in lieu of the rental owed to her without having obtained a court order to this effect. Oliver requires your legal advice on whether Stacy may legally dispossess him of his valuable items.
Required:
Explain whether Stacy’s actions in her capacity as the lessor are permissible. In your answer, refer to relevant legislation pertaining to the rights of Oliva as the lessee.
Oliver’s decision to default on payment of the final two month’s rental constitutes a breach of the lease agreement.
Required:
Identify the remedies available to Stacy (the lessor) in light of the breach of the lease agreement by Oliver failure to pay the two months rental.
Question 3
Patricia has a clothing account with Fashion Stores (Pty) Ltd and pays her instalments on time, and other times, she pays them late – but she always tries to ensure that she pays her accounts. Patricia would like to purchase a front-loader washing machine. She applies for credit at her local furniture store, but the bank declines her application because she has a low credit rating. Patricia is very unhappy and requests Fashion Stores (Pty) Ltd to view her credit report. Fashion Stores (Pty) Ltd informs Patricia that they can get her report, but she will be required to pay them for it. Patricia disputes the fact that she is required to pay for her credit report from Fashion Stores (Pty) Ltd.
Required:
Advise Patricia on her position per the scenario. Refer to relevant legislation.
3.2 Match the descriptors in Column A with the correct concept in Column B.
| Column A | Column B |
| 1. I borrow R10 000 from Cash Cow (Pty) Ltd and signs a credit agreement. | Large agreement. |
| 2. In terms of a small agreement, these documents must comply with Form 20. | Pawn transaction. |
| 3. Any credit transaction between R15 001 and R250 000. | Small agreement. |
| 4. A penalty fee may be payable for early settlement in respect of this agreement. | Intermediate agreement. |
| 5. One party advances money or grants credit to another and, at the time of doing so, takes possession of goods as security for the money advanced or credit granted. | Pre-agreement and quotation. |
Kathryn applies for a loan at APSA Bank (Pty) Ltd to start a clothing business. The customer consultant Michael, assisting Kathryn with her loan application is also her friend. Michael does not check whether Kathryn qualifies for the loan and grants her the credit of R100 000. Three months after the loan has been granted, Kathryn defaults on making payment in respect of the loan. Kathryn’s clothing business is not making sufficient income to off-set all her expenditures and consequently she is unable to pay the loan. Kathryn claims that the loan was granted on the basis of reckless credit.
Required:
In your own words, explain fully the application of ‘reckless credit’ in light of the circumstances in the scenario above.
Question 4
Richard appoints Simeon to conduct business on his behalf. Richard informs Simeon that he aims to secure R2.5 million for the sale of her apartment. Further, Richard communicates that should Simeon be successful in securing this amount, Simeon will receive R500 000 as remuneration. Simeon concludes the deal for the sale of the apartment with Tamar at a price of R3 million. Tamar is impressed with Simeon’s efficiency and professionalism in concluding the deal and transfer of the apartment and is of the opinion that Simeon should receive more than the R500 000 as promised by Richard. Tamar delivers a gold watch worth R700 000 to Simeon as a token of appreciation, which Simeon accepts. Simeon does not receive any additional remuneration despite selling Richard’s apartment at R500 000 more than the expected sale price. Simeon decides that he is not going to tell Richard about the watch.
Required:
Explain fully whether Simeon is within his rights to accept and retain the watch as given from Tamar. Fully substantiate your answer.
Charlie gives his son, Adam, power of attorney (POA) to conduct affairs on his behalf. Charlie soon develops health problems and is diagnosed with dementia, which causes him not to recognise his son Charlie.
Required:
Explain whether Adam still has the power of attorney (POA) to conduct affairs on behalf of Charlie? Fully advise.
Do you want to get HLWC200 Commercial Law Assessment Questions and Answers? We have a wide range of experienced law assignment expert writers. Get Commercial Law Assignment Essay Help at the best price at Assignment Task. We offer a lot of features such as 100% plagiarism-free content, timely delivery, in-depth researched background study.