QUESTION FOUR TO QUESTION THIRTEEN $[25]$

Question four $(4)$ to question thirteen $(13)$ are multiple choice questions. Some of the questions require the INCORRECT answer to be indicated or the most appropriate. Read the questions carefully. Select the letter corresponding to your choice in the block provided. Each question is $2\mathrm{.}5$ marks.

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$4.$ Choose the INCORRECT answer. $(2\mathrm{.}5)$

The four essential elements of Sale are:

A$.$ Delivery

B$.$ An Agreement

C$.$ Place of purchase

D$.$ Price

$5.$ Ownership, in a contract of sale, passes from a Seller to Buyer once: $(2\mathrm{.}5)$

A$.$ The price has been determined.

B$.$ Payment is completed.

C$.$ The agreement has been signed.

D$.$ Delivery has taken place.

$6.$ Risk, in a contract of sale, passes once: $(2\mathrm{.}5)$

A$.$ Payment is completed.

B$.$ The sale is said to be perfecta $($concluded$).$

C$.$ The price has been paid.

D$.$ Delivery has taken place.

$7.$ Joyce wishes to purchase a property. She signs a Purchase and Sale agreement that includes a clause stating the sale of the property is subject to Joyce being granted a loan by her bank. This clause is an example of a: $(2\mathrm{.}5)$

A$.$ Resolutive condition.

B$.$ Restrictive clause.

C$.$ Suspensive condition.

D$.$ Limitation condition.

$8.$ Viktor sells his stereo system to Reid. Their sale agreement includes a clause stating that Reid is to pay Viktor by the end of the month and should he fail to make the payment Viktor can take the stereo system back. This clause is an example of a: $(2\mathrm{.}5)$

A$.$ Resolutive condition.

B$.$ Restrictive clause.

C$.$ Suspensive condition.

D$.$ Limitation condition.

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$9.$ An implied warranty against eviction promises the buyer that: $(2\mathrm{.}5)$

A$.$ The item sold is fit for its purpose.

B$.$ The item sold does not contain any patent defects.

C$.$ The item sold does not contain any latent defects.

D$.$ The item sold will not be taken away from him$/$her by someone who claims to be the true owner.

$10.$ A warranty against latent defects promises the buyer that: $(2\mathrm{.}5)$

I. The item sold does not contain any patent and latent defects.

II$.$ The item sold is fit for its purpose.

III. The item sold does not contain any defects that are not visible to the naked or untrained eye.

IV$.$ The item sold will not be taken away from him$/$her by someone who claims to be the true owner.

A$.$ I AND III

B$.$ II and IV

C$.$ II AND III

D$.$ II$,$ III AND IV

$11.$ Linda decides to buy the property she is leasing from her landlord. While Linda is living in the apartment the transfer of the property takes place and she becomes the rightful owner. This type of delivery is known as: $(2\mathrm{.}5)$

A$.$ Symbolic

B$.$ Attornment

C$.$ Delivery with the shorthand

D$.$ Delivery with the long hand

$12.$ Richie Rich purchases a piece of art he saw displayed in an art gallery. He then tells the art gallery owner that he can continue displaying the piece of art in his gallery. This type of delivery is known as: $(2\mathrm{.}5)$

A$.$ Constructive delivery

B$.$ Symbolic delivery

C$.$ Attornment

D$.$ Constitutum possessorim

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$13.$ Indicate the INCORRECT statement: $(2\mathrm{.}5)$

The requirements for the conclusion of a valid contract are:

A$.$ Each party to the contract must have capacity to act.

B$.$ There must be consensus between the parties.

C$.$ It must be physically possible to perform in terms of the contract.

D$.$ The contract must be in writing and must be signed and dated.