BER chapters 1-3 notes - Summary Business law PDF

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BER 1 2ND of 1......................................................................................................................................................................... OF SOUTH AFRICAN LAW, LEGAL SYSTEM AND THE CREATION OF RULES OF LAW ............................. law .................

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BER NOTES CHAPTERS 1 - 3

TUKS 2ND YEAR APRIL 2019

1

Table of Contents CHAPTER 1......................................................................................................................................................................... 5 HISTORY OF SOUTH AFRICAN LAW, LEGAL SYSTEM AND THE CREATION OF RULES OF LAW ............................. 5 Roman law ........................................................................................................................................................... 5 Roman-Dutch law................................................................................................................................................. 5 South African law ................................................................................................................................................. 5 THE SOUTH AFRICAN LEGAL SYSTEM................................................................................................................... 6 General................................................................................................................................................................. 6 The law ................................................................................................................................................................. 6 Rights ................................................................................................................................................................... 6 Legal rights are divided into four categories: ...................................................................................................... 6 CREATION OF THE RULES OF LAW ....................................................................................................................... 7 General................................................................................................................................................................. 7 CUSTOM AS A SOURCE OF LAW........................................................................................................................... 7 LEGISLATION AS A SOURCE OF LAW .................................................................................................................... 7 Parliament............................................................................................................................................................ 7 Provincial legislation ............................................................................................................................................ 7 Subordinate legislative bodies ............................................................................................................................. 8 COURT DECISIONS AS A SOURCE OF LAW ........................................................................................................... 8 STRUCTURE AND JURISDICTION OF SOUTH AFRICAN COURTS ........................................................................... 8 Higher courts........................................................................................................................................................ 8 Lower courts: the magistrates’ courts ................................................................................................................. 9 Other courts ......................................................................................................................................................... 9 APPEALS ............................................................................................................................................................... 9 DOCTRINE OF PRECEDENT ................................................................................................................................... 9 CHAPTER 2.......................................................................................................................................................................11 GENERAL PRINCIPLES OF THE LAW OF CONTRACT ............................................................................................ 11 THE CONCEPT OF “LEGAL OBLIGATION”............................................................................................................ 11 SOURCES OF OBLIGATIONS ................................................................................................................................ 11 THE CONCEPT OF “CONTRACT” ......................................................................................................................... 11 TRANSFER OF RIGHTS AND DUTIES.................................................................................................................... 11 General............................................................................................................................................................... 11 CESSION ............................................................................................................................................................. 11 The rules that apply to cession: ......................................................................................................................... 12 DELEGATION ......................................................................................................................................................12 ASSIGNMENT...................................................................................................................................................... 12 CHAPTER 3.......................................................................................................................................................................13 FORMATION OF THE CONTRACT........................................................................................................................ 13

2 Requirements for a contract to be enforceable by law: .................................................................................... 13 Consensus requirements ...................................................................................................................................13 Types of consensus ............................................................................................................................................ 13 THE OFFER .......................................................................................................................................................... 13 Requirements for an offer to be valid: .............................................................................................................. 13 TERMINATION OF OFFER: .................................................................................................................................. 13 THE ACCEPTANCE:.............................................................................................................................................. 14 Requirements for acceptance to be valid: ......................................................................................................... 14 SPECIAL OFFERS: ................................................................................................................................................ 14 1.

Public offers ............................................................................................................................................14

2.

Auctions .................................................................................................................................................. 14

c)

Auction with Reserve .............................................................................................................................. 14

d)

Auction Without Reserve ........................................................................................................................ 14

CONSUMER PROTECTION ACT (CPA) ................................................................................................................. 14 3.

Options & Preferential right (pre-emptive right) .................................................................................... 15

a)

Options:................................................................................................................................................... 15

b)

Preferential right (Pre-emptive right): .................................................................................................... 15

4.

Negative offers/neg option marketing: .................................................................................................. 15

MULTIPLE PARTIES TO OFFER AND ACCEPTANCE.............................................................................................. 15 3 ways: ............................................................................................................................................................... 15 CONTENTS OF THE CONTRACT – TERMS ........................................................................................................... 16 CONTENTS DETERMINED BY TRUE/ACTUAL CONSENSUS (EXPRESSED/TACITLY): (TIC GAME) ......................... 16 a.

Essentialia................................................................................................................................................16

b.

Incidentalia.............................................................................................................................................. 16

CONDITIONS:...................................................................................................................................................... 16 Suspensive conditions (suspended performance): ............................................................................................ 16 Resolutive conditions: ........................................................................................................................................ 16 TERMS: ............................................................................................................................................................... 16 Suspensive term:................................................................................................................................................ 16 Resolutive term: ................................................................................................................................................. 17 Assumptions:...................................................................................................................................................... 17 Guarantees:........................................................................................................................................................ 17 Modal clauses: ...................................................................................................................................................17 CONSENSUS THROUGH CONDUCT: ...................................................................................................................17 CONTENTS BASED UPON ASSUMED CONSENSUS (IMPLIED- ETHICAL): ............................................................ 17 2 types:............................................................................................................................................................... 17 a.

Implied Terms ......................................................................................................................................... 17

b.

Ticket Contracts ...................................................................................................................................... 17

3 CPA ..................................................................................................................................................................... 18 CPA rules: ........................................................................................................................................................... 18 CONSENSUS BY OPERATION OF LAW: ...............................................................................................................18 1.

Common law ........................................................................................................................................... 18

2.

Legislation ............................................................................................................................................... 18

3.

Trade usage ............................................................................................................................................. 18

If CPA is applied – influences contents of contract: ..........................................................................................19 CPA requirements: ............................................................................................................................................. 19 Implied warranties: ............................................................................................................................................ 19 TIME AND PLACE OF CONCLUSION OF CONTRACT ............................................................................................ 20 Importance......................................................................................................................................................... 20 4 Theories that refer to the stages of acceptance: ............................................................................................ 20 TIME AND PLACE OF CONCLUSION .................................................................................................................... 20 FACTORS THAT INFLUENCE CONSENSUS ........................................................................................................... 21 ERROR ................................................................................................................................................................ 21 2 Categories of Error: ......................................................................................................................................... 21 MISINTERPRETATION: ........................................................................................................................................ 21 DURESS (INTIMIDATION) ................................................................................................................................... 22 These elements must be present before a contract can be voidable on bases of Duress: ............................... 22 UNDUE INFLUENCE ............................................................................................................................................ 22 Requirements to set aside contract on grounds undue influence: ................................................................... 22 COMMERCIAL BRIBERY ...................................................................................................................................... 22 RIGHT TO FAIR AND HONEST DEALING .............................................................................................................. 22 CONTRACTUAL CAPACITY ..................................................................................................................................22 THREE CATEGORIES OF NATURAL PERSONS: ..................................................................................................... 23 Persons without contractual capacity ...............................................................................................................23 Persons with limited contractual capacity ......................................................................................................... 23 AFTER 1 NOVEMBER 1984 ................................................................................................................................. 25 Marriage in community of property .................................................................................................................. 25 Marriage out of Community of property ........................................................................................................... 25 Other persons with limited contractual capacity ..............................................................................................26 Person with full contractual capacity ................................................................................................................ 26 LEGALITY AND PHYSICAL POSSIBILITY OF PERFORMANCE ................................................................................ 26 Illegal contracts .................................................................................................................................................. 26 1.

Contracts contrary to statue (prohibited by legislation) ........................................................................27

2.

Contracts contrary to common law ........................................................................................................ 27

Contracts contrary to good morals .................................................................................................................... 27 Contracts contrary to public interest - Categories:............................................................................................27

4 Gambling and lotteries....................................................................................................................................... 28 Wagers ............................................................................................................................................................... 28 Consequences of illegal contracts (contracts that have NO legal force and are NULL & VOID)........................28 PHYSICAL POSSIBILITY ........................................................................................................................................ 28 Possibility of performance ................................................................................................................................. 28 PERFORMANCE MUST BE DETERMINED OR DETERMINABLE (CERTAIN) ..........................................................29 Generic(determinable) and alternative obligations ..........................................................................................29 FORMALITIES...................................................................................................................................................... 29 Common law rules ............................................................................................................................................. 29 Agreed formalities ............................................................................................................................................. 29 Statutory requirements .....................................................................................................................................29 Formalities regarding alterations and cancellation ........................................................................................... 30 Proof of written Contracts (4 Corners) .............................................................................................................. 30

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CH CHAPT APT APTER ER 1 HIS HISTO TO TORY RY OF SO SOU UTH A AFR FR FRICA ICA ICAN N LAW LAW,, LLEG EG EGAL AL SSYST YST YSTEM EM AN AND D TH THE E CRE CREA ATIO TION N OF RU RULLES OF LA LAW W South African legal history can be divided into three broad periods, namely that of the Roman law, the Roman-Dutch law and the South African l...