Contract Law
What is "mora creditoris"?
Delay by the creditor in accepting performance or cooperating to enable the debtor to perform.
What is "huur gaat voor koop"?
A lease survives the sale of the property; the new owner becomes the landlord.
Name one consumer right under the CPA.
Rights to equality, privacy, choice, disclosure, fair marketing, honest dealings, reasonable terms, and quality/safety.
What is "reckless lending"?
Granting credit without assessing the consumer’s understanding, repayment history, or financial means.
What is the significance of the Constitution in South Africa?
It is the supreme law; any law or conduct inconsistent with it is invalid (Section 2 of the Constitution).
What constitutes repudiation of a contract?
When a party communicates (expressly or tacitly) their intention to no longer be bound by the contract.
When is a sale "perfecta"?
When the contract is unconditional, the price is determined, and the goods are specified.
When does the CPA apply?
To transactions for goods/services within RSA, where the supplier operates in the ordinary course of business and the consumer is a natural/juristic person (if turnover <R2 million).
What is "over-indebtedness"?
When a consumer cannot meet their credit obligations in a timely manner.
Name the three branches (and their functions) of the South African legal system.
The Legislature (makes laws), The Executive (implements laws), and The Judiciary (interprets laws)
What are the essential elements of a valid contract?
Consensus, Capacity to Act, Lawfulness, Possibility of Performance, and Formalities.
What are the landlord’s duties in a lease?
Deliver the property in agreed condition, maintain it, and ensure quiet enjoyment
What is the "cooling-off period" under the CPA?
A consumer may rescind a direct marketing transaction within 5 business days without penalty.
What is a "credit facility" under the NCA?
An agreement where a provider supplies goods/services or pays amounts on behalf of the consumer (e.g., credit cards).
What is the Rental Housing Tribunal?
A body under the Rental Housing Act resolving disputes between landlords and tenants.
What factors can affect consensus in a contract?
Mistake, duress, misrepresentation, and undue influence.
What are the tenant’s duties in a lease?
Pay rent, use the property lawfully, avoid damage, and return it in good condition.
What is "bait marketing"?
Advertising goods/services as available at a specific price/place without reasonable stock or capacity.
What are the consequences of reckless lending?
A court may set aside the agreement, suspend it, or restructure the consumer’s obligations.
What is the "once-and-for-all" rule in damages claims?
A plaintiff must claim all damages in a single lawsuit; they cannot approach the court multiple times for the same cause of action.
What is "consensus" in contract law?
Mutual agreement between parties, demonstrated by offer and acceptance with serious intention to create legal obligations.
What is the "actio redhibitoria"?
A remedy allowing the buyer to rescind the sale and claim restitution for seriously defective goods.
What is prohibited under "negative option marketing"?
Creating agreements by default (e.g., charging consumers unless they explicitly decline an offer)
What is the role of a debt counsellor?
To assess over-indebtedness, propose debt restructuring, and assist consumers under debt review.
What is "attornment"?
Delivery where a third party holding the property agrees to hold it for the new owner.