SECTION A

Read the scenario below and answer the questions that follow.

William is the owner of a popular shoe shop in Johannesburg called Shoes $4$ U$.$ William imports shoes from all over the world and sells them. His business has been lucrative thus far, however William believes that he needs to keep up with the current trends especially on social media. He has been a huge fan of Lewis's sock line which has gained millions of views on Tik Tok. William approaches Lewis with a business proposal to supply his business with bespoke socks that compliment the shoes which he imports. Lewis is ecstatic and agrees to the business venture.

QUESTION ONE

William secures your services for legal advice as he wants a legally binding contract in law. William has noted to you that Lewis was really excited about the endeavor, however Lewis noted that he needed to speak to his wife Janet about the decision. William believes that the deal is secured and that his offer to Lewis is fully binding.

$1\mathrm{.}1$ Based on the above set of facts, you are required to provide a legal opinion to William regarding the legalities associated with his offer and Lewis's acceptance. You are to ensure that William understands all

$(15$ Marks$)$

legalities associated with this aspect of law. You must thereafter apply the law to the set of facts presented above and determine whether the offer and acceptance provided to William is in fact valid in law.

$1\mathrm{.}2$ Outline FIVE $(5)$ pre$-$requisites of a valid contract in law. Provide a practical example of each prerequisite which you have listed.

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QUESTION TWO

William hires Sarah as a shop assistant. Sarah frequently delivers packages to clients who cannot travel to the shop. Sarah describes herself as an employee at William's store. Sarah works from $9$ am until $7$ pm everyday. She furthermore works every alternate Saturday from $8$ am to $12$:$30$ pm on two Saturdays a month. Sarah follows instructions from William as he allocates Sarah with her daily tasks which also includes deliveries to clients. Sarah has heard William tell another employee that she $($Sarah$)$ is an independent contractor. This worries Sarah as she does not understand the law fully.

$2\mathrm{.}1$ Based on the above set of facts fully discuss as to whether Sarah is an employee or independent contractor. You are required to justify your answer fully by providing the necessary legal substantiation.

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$2\mathrm{.}2$ Sarah is required to deliver a package to Mr King who resides $40$ km away from the shop. She decides that en route to Mr King's home she will stop at the local mall and buy a gift for her friend's birthday.

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However, upon entering the mall parking she collides with a delivery bike. The bike and company car are extensively damaged. Can Shoes $4$ be held liable for the damage? Discuss fully using the relevant case law in substantiation of your answer.