QUESTION $2(25$ Marks$)$

$2\mathrm{.}1$ Thando and Ayanda have noticed a surge in criminal activity around the shopping malls where their

vending machines are located. This increase in theft and vandalism has raised concerns about the security

of their vending machines and products. To safeguard their business, they are considering taking out

insurance.

Advise Thando and Ayanda on the TWO $(2)$ main types of insurance available. You must also include TWO

$(2)$ practical examples to demonstrate your independent understanding of the respective types of

insurances.

$(10$ Marks$)$

$2\mathrm{.}2$ Thando seeks insurance for their machines outside shopping malls in Durban. The insurance company

requires certification that the machines comply with safety regulations, including proper installation and

electrical wiring. Thando, having skipped certified installers to cut costs, falsely declares that all necessary

certifications are in place. After a vandalism incident, Thando files a claim with the insurance.

Evaluate Thando$$s actions. You are to refer to the legal duties and implications which an insured bears upon

taking out insurance. You are also required to cite the applicable case law.

$(15$ Marks$)$

QUESTION $3(25$ Marks$)$

Thando falls behind on rent payments for the property where the vending machines are installed, and the

landlord decides to invoke the landlord's $$hypothec$$ to recover the arrears. Historically, Ayanda failed to

provide any written notice or documentation to the landlord indicating that she owns the stock.

Ayanda phones you in a frantic state. She does not understand any legalities which are being stated to her

regarding a hypothec.

You are required to provide legal assistance to Ayanda based on the above circumstances.

$3\mathrm{.}1$ Discuss what a $$hypothec$$ is in law. Provide examples to demonstrate your understanding. $(5$ Marks$)$

$3\mathrm{.}2$ Explain the conditions that would need to apply for Ayanda$$s stock to fall under the hypothec. You are

required to cite the relevant case law.

$(15$ Marks$)$

$3\mathrm{.}3$ Determine whether Ayanda$$s stock inside the vending machines may be subject to the landlord$$s

hypothec.