Question: SECriona Read the case study below and answer the questions that follow [100 MArix] The law of conteact acis as a nolden thread throughout all


SECriona Read the case study below and answer the questions that follow [100 MArix] The law of conteact acis as a nolden thread throughout all elemenes concemed with daiy buines transactions. Agreoments are constantly being teipted inte for various purposes A contract is bending in the contract. Hydroshiny lne is owned by siblings Leon and Kale. The business is based in Duban. Lion manages the financiat elements of the company and his sister Kale manages the procurement aspects. The business currently employs one (1) hairdresser. The busincss also offers a mobie har and nal alon Kate wishes to improye the profit margin, as it has beon oxtremeiy dificuil lor une butinesopost CO.10. 19 Kate has conducted research and has heard about a hew innowative hair st/ing lool, when has multiple functions. Kate is certain that this will atiract new cualomers to ther salon. She plohes the iceo to Leon and they both agree to source the hair styling tool and soll it ta their oustorners Question 1 Kate contacts Hair For Days, a company which supplies the new har stying tool. The two pariiss agres to contract with each other. Hair For days will supply Hydroshiny inc with 50 units at a cost of R50000 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. Ste has heard that there are special clauses, which can be found in a contract. You are required to advise Kate on FIVE (5) special clauses which are 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 ine abore set of facts) Question 2 (25 Marks) Kate regularly purchases items for the salon from online siles. She sees an advert for a saund systen Which she believes would be a great addition to the saion. She contacts the seler and requests to veen the item. The seller agrees, and tells Kate that the sound system is sold " 35 is" Kate purchases ne shund system for R2500.00. She then takes the scund system back to the salon. She attempis to connect her USB in the designated port. however she notices that there is rustaround the port Sre emats the sells been working for many years. The sound system cannot operale whout a USB. Kate wishes to understand her remedies in law for the sale of defective tiems. 2.1 You are required to fully discuss the TWO (2) remed es respectively, which specif cally relate to latent defects. (20 Mars 22 Determine which remedy would be best suled to Ka:e's legar problem, and provide reasoning based on the facts above as to why this would be most applicable to Kate. Question 3 Leon has recenty convened with Kate to discuss the tinanclats of the corrpany as the business has been struggling post COVID-19. Leon has stated that there is no longer a need to encloy the hardresser at Hydroshiny inc vecause they have introduoed innovalive stying toob. which in essence dees the same employment contract can be terminated. 31 You are required to list TEN (10) ways in which an employment contact may terminate. You must thereafier provide a full discussion for each point which you have listed. 32 Is Leon legally allowed to terminate the contract of the hairdiester employed al Rydrosh wy hos bined on the above ser of facts? Apgiy the relevant principles, which yeu have diecussod above, and provide a detailed explanation. Question 4 Question 3 Leon has recently convened with Kate to discuss the financials of the company as the busirseshas bestere (25 Marks) struggling post COVID-19. Leon has stated that there is no longer a need to employ the har has bect Hydroshiny inc because they have introduced innovalive styling tools, which in essence does heser at task as the hairdresser employed at the salon. Leon wishes to understand the various ways nn shame employment contract can be terminated. 3.1 You are required to list TEN (10) ways in which an employment contract may lerminate. You must thereafter provide a full discussion for each point which you have listed. 20 Marks) 3.2 is Leon legally allowed to terminate the contract of the hairdresser employed at Hydroshiny inc based on the above set of facts? Apply the relevant principles, which you have discussed above, and provide a detailed explanation. (5 Marks) Question 4 (25 Marks) Hydroshiny's investment in the new hairstyling tool has been creating quite a bit of hype. People are placing their online orders for the item. Leon decides to purchase a motor vehicle to assist with the business deliveries. Leon contacts an insurance company, as he is required to ensure that the vehicle is insured before he is allowed to take delivery from the dealership. The insurance broker asks Leon as to who will be the designated driver. Leon states that he will be the only individual driving the vehicle, although Leon knows that he will be employing his nephew, 18-year-old Jim as a driver. Jim has very ittle driving experience and has recently obtained his license. Leon also states that the vehicle will be used for personal use only, in order to receive a low monthly premium. The insurance compary consequently classifies him as a low risk driver, as he has had his driver's license for 27 years. Whill undertaking deliveries Jim collides with another vehicle. Both vehicles are extensively damaged. 4.1 Based on Leon's actions above you are required to fully discuss the insured's duty of disclosure. (10 Maris) 4.2 Based on the set of facts above has Leon acted in an ethical manner? Provide a detaled explanation
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