eo NAMIBIA UNIVERSITY OF SCIENCE AND TECHNOLOGY

Faculty of Human Sciences

Department of Social Sciences

13 Storch Street T: +264 61207 2351 Private Bag 13388 F: +264 61 207 9351

Windhoek E: dss@nust.na NAMIBIA W: www. nust.na

FACULTY OF HUMAN SCIENCES

DEPARTMENT OF SOCIAL SCIENCES

QUALIFICATION: Marketing, Accounting and Finance, Commerce, Business Administration, Office Management & Technology & Public Administration

QUALIFICATION CODE: Various LEVEL: 5

COURSE: COMMERCIAL LAW 1A COURSE CODE: CML 111S

DATE: July 2017 PAPER: THEORY DURATION: 2 Hours MARKS: 100

SUPPLEMENTARY/SECOND OPPORTUNITY EXAMINATION PAPER

EXAMINERS: Mr. B Tjatjara/E Wabomba/H Von Alten/S De Villiers/(M Hanekom

MODERATOR: Ms. Mercia Geises

INSTRUCTIONS

1. This examination paper consists of FIVE questions. Students should answer ALL questions.

2. Read the questions carefully before answering 3. Number answers according to the numbering structure provided in the examination

question paper. 4. Candidates will be penalized for incorrect spelling and illegible handwriting.

THIS EXAMINATION PAPER CONSISTS OF 5 PAGES (INCLUDING THIS COVER PAGE)

Question 1

Choose a correct answer from the alternatives provided for each statement by merely. indicating the letter with the correct answer.

1.1.

1:2,

1.3.

1.4.

1.5.

1.6.

Taf

1.8.

The debtor has to develop a photography film for the creditor, but negligently exposes it to light before the development is completed. This form of breach of contract is known as

(a) Repudiation.

(b) Prevention of performance. (c) Defective performance.

The following remedy can be used where the breach of contract is very serious i.e. a breach which goes to the root of the contract

(a) Cancellation.

(b) Penalty stipulation. (c) Specific performance.

The transfer of a duty arising from a contract from one debtor to another is known as

(a) Cession. (b) Delegation. (c) All of the above.

This type of agreement occurs where a creditor releases a debtor from his contractual obligations

(a) Novation.

(b) Compromise. (c) None of the above.

When a contract is concluded by telephone the following theory is applicable

(a) The declaration theory. (b) The expedition theory.

(c) The information theory.

For the purpose of contractual capacity, a child under the age of seven is called

(a) Infans (suckling). (b) Pupillus.

(c) None of the above.

The degree of proof required in a criminal case is proof

(a) Beyond reasonable doubt. (b) On a balance of probabilities.

(c) Beyond some doubt.

The following is not one of the remedies for a claim based on innocent misrepresentation

(a) Delictual damages. (b) Cancellation (Rescission) of the contract. (c) Upholding the contract.

1.9. Which of these factors influencing consensus renders the contract voidable?

(a) Duress.

(b) Mistake. (c) Both (a) and (b) above are correct.

1.10. A person married in community of property after 1996 in Namibia has

(a) Full contractual capacity. (b) Limited contractual capacity.

(c) No contractual capacity.

1.11. This court can hear and determine a case of divorce

(a) The Regional Court. (b) Magistrate’s Court.

(c) None of the above.

1.12. In order for a contract of sale of land to be valid, it must comply with the following formality or formalities

(a) Must be in writing.

(b) Must be in writing and signed by both parties. (c) Notarial execution.

1.13. If performance after the conclusion of the contract is subjectively impossible, the contract is

(a) Void. (b) Valid.

(c) Voidable.

1.14. In principle contracts in restraint of trade are

(a) Valid.

(b) Valid and enforceable.

(c) Void.

1.15. Lower courts are presided over by

(a) Judges.

(b) Magistrates.

(c) Prosecutors and Legal Practitioners.

1.16. Judgments of the courts are also known as

(a) Judicial precedent.

(b) Legislation.

(c) Custom.

1.17. Can an offer be accepted after it has been revoked?

(a) Yes.

(b) No.

(c) None of the above.

1.18. Which of the following contract has two components, the main offer and the subsidiary contract

(a) Right of pre-emption.

(b) Option.

(c) None of the above.

1.19. A situation where the guardian allows the minor to lead an economically separate life, for example to conduct a business necessary for earning an income or for living apart from

his/her parents is Known as

(a) Ratification.

(b) Emancipation.

(c) Rectification.

1.20. Which of the following is a contract against good morals?

(a) C agrees to accept N$ 15 000 to kidnap Z to prevent him from marrying Y.

(b) Selling of liquor without a license.

(c) An agreement to commit a crime. Each correct answer is worth 2 Marks

(40 Marks)

Question 2

2.1. What distinguishes a contract from an agreement, such as social arrangement? (2 Marks)

2.2. Name the five requirements of a valid acceptance. (8 Marks)

(10 Marks)

Question 3

Elia is the owner of the Turf Restaurant, specialising in traditional Oshiwambo food. He offers to sell the restaurant to Kertu for N$ 5 million. Kertu says: ‘I can’t afford more than N$ 3 million.’ Elia replies: ‘Kertu, this is a potential gold mine! If you devote your full attention to the business you should achieve a gross turnover of well over N$ 750 000 a month.’ This last statement convinces Kertu to buy for N$ 5 million. After running the restaurant for a short period, She discovers that Elia, despite having worked long hours in the business every day for several years, never managed to obtain a turnover of more than N$ 400 000 per month. Elia knew at the time of the conclusion of the

contract that his statement was not true.

3.1. Is the contract between Kertu and Elia, void or voidable? Briefly Explain. (7 Marks)

3.2. | What are the remedies available to Kertu if any? Briefly Explain. (3 Marks)

(10 Marks)

Question 4

4.1. | Name the duties of the agent and principal in a contract of agency. (6 Marks)

4.2. _ Howcanaminor achieve majority. (4 Marks)

(10 Marks)

Question 5

State whether each of the following statement is true or false. NO MOTIVATION REQUIRED

5.1. | A contract is always an agreement between two persons only with intention to create legal

obligations.

5.2. | Customary law is the most important source of law in Namibia.

5.3. Accontract is valid even if it was induced by mistake, which is material.

5.4. An insane person has no contractual capacity at all times.

5.5. — If a contract is voidable it remains valid but not enforceable.

5.6. | The highest trial court in Namibia is the Supreme Court of Namibia.

5.7. |The remedy in a civil case is punishment of the wrong doer.

5.8. | Aclaim for delictual damages is not available to an aggrieved party to a contract induced as

a result of undue influence.

5.9. A person married in community of property who enters into a contract needs consent of the

other spouse in writing all the times for a contract to be valid

5.10. Ahn illegal contract can be voidable.

5.11. The originating source of the modern Namibian law is Roman-Dutch law.

5.12. A regional court can try a criminal offence of treason.

5.13. A valid offer must be accepted by the person to whom it is made.

5.14. Contracts of surety must be in writing and signed by the surety.

5.15. For the purposes of breach of contract, mora debitoris means the default of the creditor.

Each correct answer is worth 2 marks

(30 Marks)

END OF PAPER

Total: (100 Marks)