Answer Happy

SECTION A [100 Marks] Read the scenario below then answer thequestions that follow. Contracts are of critical importanceespecially in daily commercial and business transactions.Agreements are constantly being entered into for various purposes.A contract is binding in law and each party must deliver andperform according to their obligations as mutually agreed upon inthe contract. Janice runs a bespoke luxury handbag boutique calledLa Bougee Boutique in an upmarket suburb of Durban. She buys andsells premium handbags. Janice has created a well-established namefor herself in the fashion industry in South Africa. Janice hasinternational clients who purchase handbags from her store. Hersupplier Roderigo resides in Cape Town. Janice has a writtencontract in place with Roderigo which states that Roderigo willprovide Janice with premium handbags which he imports from Italy.The contract shall span over a period of 2 years. One of Janice’sobligations is to ensure that a part payment of 50% is transferredto Roderigo prior to the delivery of the handbags. The remaindershall be payed upon the delivery of the goods to her store. One ofRoderigo’s obligations is to ensure that all bags sold to Janiceare authentic and suitable for sale. Answer ALL the questions inthis section.
Question 1 (20 Marks)
Janice seeks your assistance, as she wants to know whether thecontract that she entered into with Roderigo is valid. AdviseJanice as to what the requirements are for a valid contract. (Youare required to list the requirements and thereafter demonstrate anapplication of the essential elements by providing examples.)