Read the case study below and answer the questions that follow. The law of contract acts as a golden thread throughout all elements concerned with daily business transactions. Agreements are constantly being entered into for various purposes. A contract is binding in law and each party must deliver and perform according to their obligations as mutually agreed upon in the contract. Hydroshiny Inc is owned by siblings Leon and Kate. The business is based in Durban. Leon manages the company's financial elements, and his sister Kate manages the procurement aspects. The business currently employs one (1) hairdresser. The business also offers a mobile hair and nail salon. Kate wishes to improve the profit margin, as it has been extremely difficult for the business post-COVID-19. Kate has researched and heard about a new innovative hair styling tool with multiple functions. Kate is certain that this will attract new customers to their salon. She pitches the idea to Leon and they both agree to source the hair styling tool and sell it to their customers.

Question 1 (25 Marks) Kate contacts Hair For Days, a company that supplies the new hair styling tool. The two parties agree to contract with each other. Hair For Days will supply Hydroshiny Inc with 50 units at a cost of R500.00 each. This will be an ongoing relationship for a period of 1 year. Kate wishes to ensure that the contract between both parties is legally correct and binding in law. She has heard that there are special clauses, which can be found in a contract.

You must advise Kate on FIVE (5) special clauses found in a contract. You are required to fully outline the clauses and thereafter demonstrate an application of the law by providing a practical example for each clause. (You may relate your practical examples to the above set of facts).