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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
## Question 1: Consensus ad Idem **Consensus ad Idem: Meaning and Use in Contract Law** "Consensus ad idem" is a Latin term that translates to "agreement of the minds." This concept denotes the mutual understanding and assent between parties during the formation of a contract. For a contract to be legally binding, there needs to be consensus ad idem, meaning that all parties must have a shared comprehension and intention concerning the contract's terms and conditions. ### Explanation In contract law, consensus ad idem is vital because it ensures that all contracting parties are on the same page. This mutual agreement encompasses all elements of the contract, including the scope, price, duration, and any other essential terms. Without consensus ad idem, a contract may be void or unenforceable because the parties did not reach a genuine agreement. ### Practical Examples **Example 1: Purchase Agreement** Ms. Patel agrees to purchase a new beauty treatment machine from a supplier. Both Ms. Patel and the supplier agree on the specific model, price, and delivery date. They each sign a written contract detailing these terms. There is consensus ad idem because both parties understand and agree to the same terms. **Example 2: Employment Contract** Jane and Ms. Patel agree on the terms of Jane working as a store assistant, including her salary, hours, and job duties. They both sign an employment contract outlining these terms. There is consensus ad idem as both parties have agreed upon the specifics of Jane's employment. By ensuring consensus ad idem, parties can avoid misunderstandings that could lead to disputes or the invalidation of the contract. ## Question 2: Employment of Minor (Jane) South African labor law, particularly the Basic Conditions of Employment Act (BCEA), sets the legal framework for employing minors. The BCEA categorically states under Section 43 that no person may employ a child under the age of 15 years. However, children aged 15 years and older but under 18 years can be employed under certain conditions that do not negatively influence their well-being or education. ### Evaluation of Jane's Circumstances **Age Consideration:** Jane is 15 years old and thus falls within the boundary of permissible employment under certain conditions as per the BCEA. **Family Situation:** Jane's personal circumstances, including that she is a widow, do not inherently change the legal requirements pertaining to her employment. However, these circumstances should be approached with sensitivity and may necessitate additional support. **Employment Conditions:** Ms. Patel needs to ensure that Jane’s working conditions adhere to the law, specifically: - Jane's work should not be hazardous or interfere with her schooling. - Jane must not work more than 8 hours on a school day and must have sufficient breaks. - Jane should be provided with proper remuneration and a safe working environment. Given Jane's situation, it is possible for Ms. Patel to legally employ her provided all legal provisions and protections are strictly observed. ## Question 3: Remedies for Latent Defects ### 3.1 Remedies Against Seller (Latent Defects) When a buyer discovers latent defects—defects that are not visible or apparent at the time of sale—in a purchased good, they have several legal remedies under South African law: **Remedy 1: Actio Redhibitoria** This remedy allows the buyer to cancel the contract and return the defective goods, demanding a full refund of the purchase price. This action is often taken in cases where the defect is substantial and undermines the purpose of the purchase. **Remedy 2: Actio Quanti Minoris** This remedy permits the buyer to keep the defective goods but claim a reduction in the purchase price corresponding to the diminished value due to the defect. This action is relevant when the buyer prefers to retain the item despite its flaws, seeking compensation for the reduced utility or quality. ### 3.2 Best Remedy for Ms. Patel The most suitable remedy for Ms. Patel, given that she wishes to keep the sound system and repair it, would be **Actio Quanti Minoris**. She can claim a reduction in the purchase price from Mr. Tom, reflecting the cost to repair the latent defect. This way, she can retain the radio and have it repaired by her brother Devin while receiving compensation for its reduced condition.
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