CLA 1503 Chapter 12 Transfer Termination Memo PDF

Preview

Summary

notes...

Description

CLA 1503: HOMEWORK 12 - MEMO CHAPTER 12 – TRANSFER AND TERMINATION OF PERSONAL RIGHTS - ONLY CESSION

CLA1503 – Chapter 12 – Transfer & Termination

Page 1

QUESTION 1 Which of the following is NOT a type of agreement which parties to a contract may use to end the contractual relationship between them? 1.

2.

3.

4.

Two parties settle a dispute between themselves concerning an supposed obligation. A creditor releases a debtor from his obligations. A third person is introduced as a party to the contract. A contracting party becomes both creditor and debtor in respect of the same obligation.

QUESTION 2 When the creditor is a minor 1. Prescription will not start running 2. the completion of prescription is delayed 3. Prescription is interrupted 4. Prescription will run against

has intentions of discharging)

his/her legal guardian. QUESTION 3 Quin owes Abe R 100 000 which Abe lent to him two months ago. Indicate the INCORRECT statement: 1.

2.

3.

4.

Abe is not obliged to accept a diamond from Quin instead of the R 100 000. Bill can settle the debt to Abe even if Quin does not want him to do so. Quin may demand a receipt when he offers Abe the payment of R 100 000. and is not obliged to accept Abe’s explanation that he does not usually give receipts. If Bill tenders proper payment of Quin’s debt to Abe, Abe is entitled to insist that payment be effected by Quin himself. (any one can discharge the debt.. provided person who performs

CLA1503 – Chapter 12 – Transfer & Termination

collect the debt. QUESTION 6

QUESTION 4 A period of prescription in respect of a debt arising from a bill of exchange or other negotiable instrument, is usually: 1. three years 2. four years 3. Five years 4. six years QUESTION 5 Which of the following is NOT a consequence of cession? 1.

2.

3.

4.

The right forms part of the patrimony of the cessionary and not of that of the cedent. The cessionary receives the claim without the disadvantag es attached to it. The claim is transferred to the cessionary in its entirety together with all benefits such as interest. The cessionary alone has the right to

A undertakes to build a wall around B’s property. However A has too much work and convinces X to take over the job. A,B & X now agree on this arrangement. A’s obligation is extinguished because of: 1. 2. 3. 4.

settlement Delegation Set-off cession

QUESTION 7 Which one of the following is a consequence of Cession? 1.

2.

3.

The right forms part of the patrimony of the cessionary and of the cedent. ( =not of cedent) The cessionary receives the claim without the disadvantage s attached to it. (= with) The claim is transferred to the cessionary in its entirety together with the benefits

Page 2

4.

such as interest. Both the cessionary and the cedent have the right to collect the debt. (not cedent)

QUESTION 8 P borrows R 10 000 from E. They agree that P will repay the money in two instalments over the following 2 months. At the end of the 1st month, P gives E R 5000 and during the 2nd month he repays her only R 3 000. E approaches P about the outstanding amount of R 2 000 but P insists that he only owed E R 8 000 and not R10 000. They eventually reach an agreement that p will pay her R 9 000.

3.

4.

QUESTION 10 Candy wins a gift voucher from Shine car Fixtures. In terms of the voucher, she is entitled to a free carwash. Since she does not own a car, she cedes her right to the carwash to her friend Ben.

4.

Which one of the following statements is correct?

5.

1.

This is an illustration of… 1. 2. 3. 4.

Release Novation Settlement Delegation

QUESTION 9 Which of the following will terminate an obligation? 1. cession of the obligation 2. Discharge/p erformance

of the obligation Subjective impossibility of performance Partial impossibility of performance

2.

3.

An agreement between Candy and Shine Car Fixtures in terms of which a new obligation is created between SCF and Ben, is a cession of rights. An agreement between Candy and Ben in terms of which Ben becomes entitled to performance by SCF, is a cession of rights. An agreement

CLA1503 – Chapter 12 – Transfer & Termination

between Candy and Ben in terms of which a new obligation is created between SCF and Ben, is a cession of rights. An agreement between SCF and Ben in terms of which a new obligation is created between SCF and Ben, is a cession of rights. An agreement between SCF and Ben in terms of which Ben becomes entitled to the performance of SCF, is a cession of rights

QUESTION 11 Ivy owes Vicky R 20 000, which she lent him 2 months ago. Which one of the following statements is correct.? 1.

Vicky may refuse to accept payment of Ivy’s debt if it is not tendered by Ivy himself. (must have agreed to it)

2.

3.

4.

Nothing except an amount of R 20 000 from Ivy to Vicky will qualify as payment of her debt. If Leoowes Ivy R 25 000, Ivy may cede her claim against Leo to Vicky to the amount of R 20000. (must be the whole debt) If Ivy and Vicky get married in community of property Ivy’s debt will automaticall y terminate (merger Pg 144)

QUESTION 12 Tebogo and Peter conclude a contract in terms of which Tebogo will do the interior decorating of Peter's holiday flat. The contract price of R 15 000 include? the work and materials. Before Tebogo can start with the project, the flat is completely destroyed by fire as a result of Peter's negligence Which ONE of the following statements is CORRECT? 1. Tebogo cannot claim anything from Peter, since the contract has been terminated

Page 3

2. Tebogo can claim the full contract sum of R15 000 from Peter as damages. 3. Tebogo can claim R15 000 from Peter, less the amount she has saved by not having to perform 4. Tebogo can claim only in respect of expenses she has already incurred.

QUESTION 13 An obligation can be terminated…. 1. prevention of performance 2. supervening impossibility of performance 3. supervening impossibility of performance where the debtor is in mora 4. initial impossibility of performance QUESTION 14 Caleb owes Don R 20 000 in respect of several debts. Caleb pays Don an amount of R 10 000 but does not stipulate which debt/s he is actually paying. Which ONE of thee following principles will apply in this case?

1. Capital is paid before interest

2 Due debts are paid before debts which have not yet fallen due 3 Onerous debts do not have preference over non-onerous debts 4 Old debts do not have preference over new debts.

obligation is also void. 3. A valid novation will take place even though the initial obligation was invalid. 4. The effect of novation is to extinguish the original debt and therefore to extinguish accessory obligations

QUESTION 15 Ellis undertakes to build a wall around Barne’s' property. However Ellis realizes that he has too much work and persuades Basil to take over the job. Ellis, Barnes and Basil now agree to this arrangement. Which ONE of the following terms will complete the sentence below CORRECTLY? Ellis’ obligation is extinguished because of 1. Settlement 2. Delegation 3. Set-off 4. cession QUESTION 16 Which ONE of the following statements regarding novation is CORRECT? 1. Novation does not extinguish the original obligation between the parties 2. If the novation is void for whatever reason the old

CLA1503 – Chapter 12 – Transfer & Termination

reduction of Baxter’s obligations in respect of the capital on his home loan. 4. Baxter’s (Pty) Ltd’s debt of R 40 000 in favour of the Big Construction Co (Pty) Ltd is extinguished when the two companies merge.

QUESTION 17 Which ONE of the following statements is CORRECT? 1. If Baxter borrows R 4000 from Edgar on 1 Dec and they agree that Baxter will pay the money back on 30 Dec, prescription regarding the debt begins to run on 1 Dec. 2. Baxter may cede a third of what Enos owes him to Bamey without Enos s consent. (whole debt) 3. Baxter owes Power Bank a total of R 20 000 in respect of various transactions. He deposits an amount of R 50 000 with the bank, but fails to stipulate how the payment must be allocated. The bank is obliged to apply the whole sum towards the

Page 4...