ASSIGNMENT FOR LEGAL ASPECTS FOR PROJECT MANAGERS

COMPLETE SECTIONS A & B AND ANSWER ALL THE QUESTIONS

SECTION A: LAW OF CONTRACT $[60]$

QUESTION $1$

On $17$ October $2023,$ Mike sells a motorcycle to his friend Peter for R $250000-00.$ Mike delivers the

motorcycle to Peter on $18$ October $2023$ at $08$h$00,$ at which time Peter also pays Mark the purchase

price. It appears that Mike only bought this motorcycle on $10$ October $2023$ from Tom for the price of

R $175000-00.$ Although Tom gave the motorcycle to Mike on that date, Tom and Mike agreed that the

purchase price was only payable by Mike on $1$ November $2023.$ The motorcycle was never registered

in Mike$$s name and also not in Peter$$s name. Both contracts are in writing and signed by the respective

purchasers and sellers. All parties are older than $18$ and have full mental capacity. It is not illegal to sell

this type of merchandise.

$1\mathrm{.}1$ Explain briefly whether a valid contract of sale was concluded between Mike and Peter. Apply

the requirements for the conclusion of a valid contract of sale. Do NOT just list the

requirements. Give a brief description $(2-5$ lines$)$ for each requirement given the facts

provided. $(8)$

$1\mathrm{.}2$ Who is the owner of the motorcycle on $18$ October $2023$ at $09$h$00?$ Provide reasons for your

answer by referring to both transactions. $(8)$

$1\mathrm{.}3$ Now change the facts as provided above as follows: Mike agrees to have his employee deliver

the motorcycle to Peter at Peter$$s house on $18$ October $2023.$ On the way to Peter$$s house, the

motorcycle is involved in a collision with a truck. The accident is not caused by the employee$-$

driver$$s negligence. The driver of the truck was drunk and at fault. The motorcycle is severely

damaged. Who carries the risk of damage$/$loss to the motorcycle $$ the SELLER or the BUYER?

Provide reasons for your answer. $[$Note: the answer is NOT the drunk driver of the truck; and

delictual claims are NOT relevant in answering this question$].(5)$

$1\mathrm{.}4$ Assume now that when Mike bought the motorcycle from Tom, the contract he concluded was

subject to the approval of financing of the purchase price by FINbank. Such approval was not

yet procured by Mike on $18$ October $2023$ the date of the failed delivery to Peter. Would this

change the answer you gave in $1\mathrm{.}3$ above? Explain briefly. $(3)$

TOTAL QUESTION $1$: $[24]$