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Question: Instructions to students: - Students are to refer to a minimum of 5 academic sources when undertaking the case study. - The module guide is not a primary source of reference and should not be the source of answers to the below questions. - Students are to provide an independent application of the law i.e – students must use legal reasoning and show their own thought process in answers. - Students are to refer to South African law. - Referencing is critical. The law of contract is fundamental in order to promote confidence and clarity in both business and personal dealings. It gives parties a structure for creating legally enforceable agreements, guaranteeing that rights, responsibilities, and remedies are clear. The law of contract encourages economic stability by upholding contracts, which encourages investment and corporate expansion. In addition, it maintains equity by ensuring that each party fulfils their commitments. The law of contract is essential to upholding social order within the confines of the legal system, advancing justice, and facilitating transactions. Ms Patel is the CEO of Heir Inc, operating three beauty salons in the greater Johannesburg area. Despite the success of her business during peak seasons, Ms. Patel desires to expand her services by offering themed beauty packages for special occasions at her salons. Lacking expertise in event coordination, she seeks to contract a reputable event planning company. Ms. Smith is the CEO of Events For You, and notices a social media advertisement posted on Heir Inc’s social media page. Intrigued, she approaches Ms. Patel with a detailed business proposal outlining innovative ideas. Impressed by the proposal, Ms. Patel seeks legal advice to ensure the contract between her and Events For You is legally binding and enforceable. Ms Patel has heard about the term ‘Consensus Ad Idem’ from her friend Tony who is a third-year law student. She wants to know what this fancy Latin term means. Question 1 (10 Marks) Discuss what the term consensus ad idem means. You are required to provide an explanation of the legal concept, discuss when it is used in contract law, and thereafter provide TWO (2) practical examples to show your independent understanding. Question 2 (10 Marks) Jane notices Ms Patel’s advert for a store assistant. She wants to apply. Jane is 15 years old. Her husband Jim passed away last year tragically. Based on Jane’s circumstances, evaluate fully whether she can legally be employed by Ms Patel. Question 3 (10 Marks) Ms Patel purchases a sound system from Mr Tom for R2500. She is excited to create an energetic vibe for her store. Mr Tom states that the radio is in great condition, and that it was recently purchased. When Ms Patel takes it back to her shop, she notices that her USB will not read. She asks her brother Devin to inspect the radio as he is a sound technician. He tells her that the radio is quite old, and that there is rust forming around the mechanism. 3.1. Discuss TWO (2) remedies that can be used by a buyer against a seller. These remedies must be specific to latent defects. (8) 3.2. Which remedy would best suit Ms Patel should she want to keep the radio and get it repaired by her brother Devin? (2 use in text referencing and a minimum of 5 references and the end
### Question 1: Consensus Ad Idem **Concept Explanation:** "Consensus ad idem" is a Latin term meaning "agreement to the same thing" and is fundamental to contract law. It signifies that all parties involved in a contract clearly understand and agree to the same terms and conditions. Without consensus ad idem, the contract lacks the mutual assent necessary to be legally enforceable (Christie, 2011). **Usage in Contract Law:** In contract law, consensus ad idem is used to demonstrate that there is a "meeting of the minds," where all parties involved have a mutual understanding and agreement on the essential terms of the contract. This concept ensures that each party's intentions align, thereby validating the contract. **Practical Examples:** 1. **Employment Contract:** Ms Patel offers Jane an employment contract specifying the job role, salary, and working hours. Jane reviews and signs the contract, agreeing to the offered terms. Here, consensus ad idem is evident as both parties have a mutual understanding and agreement on the employment terms. 2. **Sale and Purchase Agreement:** Ms Patel agrees to buy a sound system from Mr Tom for R2500, believing it to be in excellent condition as described. Mr Tom agrees to sell it under these conditions. However, if it’s later found that the sound system is faulty and both parties had different understandings about the product's condition, there’s no consensus ad idem, potentially voiding the contract. ### Question 2: Employability of a Minor To evaluate whether Jane can be legally employed by Ms Patel, South African labor law must be considered. **Legislation:** According to the Basic Conditions of Employment Act (BCEA) No. 75 of 1997, it is generally unlawful to employ a child under the age of 15. However, minors aged 15 to 18 may be employed under specific conditions, provided the employment does not impede their education or wellbeing (Basic Conditions of Employment Act, 1997). **Analysis:** 1. **Age Consideration:** Jane is 15 years old, putting her within the permissible working age bracket under the BCEA, provided the job does not interfere with her schooling or health. 2. **Welfare and Education:** Ms Patel must ensure that Jane’s job does not hinder her schooling or expose her to hazardous conditions. If Jane is attending school, her working hours must be adjusted to fit her educational commitments. Given Jane’s circumstances, particularly the recent loss of her husband, emotional and psychological considerations should also be taken into account. Employment in a supportive and understanding environment like Ms Patel’s beauty salon may offer Jane some stability. ### Question 3: Remedies for Latent Defects in a Sales Contract **3.1. Remedies for Latent Defects:** 1. **Actio Redhibitoria:** This remedy allows the buyer to cancel the contract and return the defective goods for a full refund. The defect must have been present at the time of sale and not disclosed by the seller. If Ms Patel chooses this remedy, she can return the sound system to Mr Tom and recover her R2500, as the defect was latent and undisclosed by Mr Tom (Nagel, 2018). 2. **Actio Quant Minoris:** This remedy permits the buyer to retain the defective goods but claim a reduction in the purchase price proportionate to the defect. If Ms Patel wishes to keep the radio and get it repaired, she could request a reasonable reduction in the purchase price from Mr Tom to account for the defect. She could then use the reduced amount towards the repair costs (Van der Merwe et al., 2012). **3.2. Suitable Remedy for Ms Patel:** Since Ms Patel wants to keep the radio and have her brother repair it, the **Actio Quant Minoris** would be the most appropriate remedy. By claiming a reduction in the purchase price, she can utilize the saved funds for the necessary repairs (Woker, 2019). ### References: 1. Basic Conditions of Employment Act No. 75 of 1997. 2. Christie, R. H. (2011). *The Law of Contract in South Africa*. LexisNexis. 3. Nagel, C. J. (2018). *Commercial Law*. LexisNexis. 4. Van der Merwe, S. et al. (2012). *Contract: General Principles*. Juta. 5. Woker, T. (2019). *Consumer Protection*. Juta. --- This framework provides a clear guidance for students to understand and apply the relevant legal concepts, ensuring their answers are backed by legal reasoning and pertinent South African law references.
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