SECTION A [100 MARKS]

Read the scenario below and answer the questions that follow.

South Africa has experienced an increased amount of loadshedding in the past year, which has resulted in high levels of frustration especially for business owners. Coffee Brew King is owned by Jackson. Jackson has been losing a significant amount of business due to the constant electricity interruptions. His coffee shop is well known for the free Wi-Fi and gourmet coffees. Jackson wishes to mitigate the problem by installing a high-powered generator which would allow his business to function at optimal capacity. He sources PowerTools Inc, a company operating within Cape Town to assist him with the process. PowerTools Inc is owned by 16 year old Jared. Jareds father Malcom passed away 3 years ago and has given the entire business to Jared. Jared currently resides with his mother.

Answer ALL the questions in this section

. QUESTION ONE

Jackson seeks your advice as he wishes to ensure that the contractual relationship between both parties are sound in law. 1.1 You are required to fully advise Jackson as to what constitutes a valid contract in law. In your discussion you must also provide practical examples for each element which you have listed. (16 Marks)

1.2 Can Jared contract in law? Discuss fully. (4 Marks)