Read the scenario below then answer the questions that follow. Contracts are of critical importance especially in daily
Posted: Thu Jul 07, 2022 11:40 am
Read the scenario below then answer the questions that follow.Contracts are of critical importance especially in daily commercialand business transactions. Agreements are constantly being enteredinto for various purposes. A contract is binding in law and eachparty must deliver and perform according to their obligations asmutually agreed upon in the contract. Janice runs a bespoke luxuryhandbag boutique called La Bougee Boutique in an upmarket suburb ofDurban. She buys and sells premium handbags. Janice has created awell-established name for herself in the fashion industry in SouthAfrica. Janice has international clients who purchase handbags fromher store. Her supplier Roderigo resides in Cape Town. Janice has awritten contract in place with Roderigo which states that Roderigowill provide Janice with premium handbags which he imports fromItaly. The contract shall span over a period of 2 years. One ofJanice’s obligations is to ensure that a part payment of 50% istransferred to Roderigo prior to the delivery of the handbags. Theremainder shall be payed upon the delivery of the goods to herstore. One of Roderigo’s obligations is to ensure that all bagssold to Janice are authentic and suitable for sale. Answer ALL thequestions in this section. Question 1 (20 Marks) Janice seeks yourassistance, as she wants to know whether the contract that sheentered into with Roderigo is valid. Advise Janice as to what therequirements are for a valid contract. (You are required to listthe requirements and thereafter demonstrate an application of theessential elements by providing examples.)
Question 2
Roderigo offers Janice a ‘limited edition” crocodile vintageMior bag at an extremely cheap price. Roderigo tells Janice thatthe handbag is authentic and that this offer is a rare one. Janiceis excited about purchasing the bag as she has heard that onlyseven (7) of these bags exist. Janice purchases the bag fromRoderigo, however a month later an authenticator in Durban confirmsthat the bag is a replica of the original. Based on the above abreach of contract between Janice and Roderigo has occurred. Whatdefense can Janice use to cancel the contract entered into withRoderigo?
Discuss this defense fully. (7 marks) (You are required to applythe defense to the scenario provided)
2.1 2.2 Discuss fully what Janice must prove for her defence tobe regarded as successful? (8 marks) Janice wishes to understandthe term ‘breach”
2.1.2.3 (10 marks) You are required to discuss FIVE (5) types ofbreach of contract that are recognised by South African Courts.
Question 2
Roderigo offers Janice a ‘limited edition” crocodile vintageMior bag at an extremely cheap price. Roderigo tells Janice thatthe handbag is authentic and that this offer is a rare one. Janiceis excited about purchasing the bag as she has heard that onlyseven (7) of these bags exist. Janice purchases the bag fromRoderigo, however a month later an authenticator in Durban confirmsthat the bag is a replica of the original. Based on the above abreach of contract between Janice and Roderigo has occurred. Whatdefense can Janice use to cancel the contract entered into withRoderigo?
Discuss this defense fully. (7 marks) (You are required to applythe defense to the scenario provided)
2.1 2.2 Discuss fully what Janice must prove for her defence tobe regarded as successful? (8 marks) Janice wishes to understandthe term ‘breach”
2.1.2.3 (10 marks) You are required to discuss FIVE (5) types ofbreach of contract that are recognised by South African Courts.