The word limit for the assignment is One thousand (1 000) words (include footnotes and a bibliography list for this). The footnotes and bibliography should be in the SOUTH AFRICAN LAW JOURNAL (SALJ HOUSE REFERENCING STYLE) and you must include your word count. ASSIGNMENT QUESTION This question is taken from the June Test 2022. Therefore, this assignment is an opportunity for you to practice an exam-type problem question. Kendall Roy is 17 years old. His father Logan is a successful businessman and Kendall wishes to follow in his footsteps. In January 2022, Logan thinks about the possibility of buying shares in a competitor company called MedCruises Pty. Ltd. Logan decides that this would be a good way of getting Kendall involved in the world of business. Logan instructs Kendall to meet with the company representatives and tells him to buy 500 shares in MedCruises. Logan also says to Kendall, "Son, why don't you buy some shares of your own to get started? You're my number one boy." When Kendall meets with representatives of MedCruises, he buys 500 shares plus a further 100 shares. Kendall signs the application which states: "I hereby apply for 600 shares of R1000 each in MedCruises Pty. Ltd. and I request you to allot me that number of shares. I enclose proof of payment for half the money owed and will pay the balance plus interest over a period not exceeding three months." MedCruises are happy and Kendall says "This is a great investment for my father and I". Kendall feels so thrilled that he decides to buy himself new headphones. New AirPods Max cost R12 500 and Kendall enters into a contract with the iStore to pay them off in monthly installments. He doesn't mention any of this to his father who disapproves of his obsession with music. Later that day, Kendall decides to meet up with Lawrence Yee who is founder and CEO of a company called Vaulter. They begin discussing Vaulter and Kendall sees great promise in this venture. He gets on the phone with his father and asks him for advice. Logan tells Kendall, "Oh yes, this is a great idea, you should get involved with Vaulter - they are the future. If I were you, I would invest and maybe even lease a building so that you Lawrence can begin operations." Kendall invests a lot of money in Vaulter and leases out a building in which Vaulter can conduct its operations. Kendall tells his father of all his plans and enters into a lease agreement with PropertyWorld which includes the following terms: 1) Rent is R20 000 per month and is payable on the first day of every month. 2) Rent which is not received by the third day of the month incurs a penalty of R1000 per day until full payment is made. 3) Rent shall still be payable even if the property becomes uninhabitable i.e. is destroyed by a fire. 4) Any attempt to terminate the lease agreement before December 2022 will result in the tenant (i.e. Kendall Roy) paying a sum of R50 000 immediately. It is now June 2022 and Kendall receives an email from MedCruises saying that they received his payment for 100 shares but are now demanding outstanding payment for 500 shares plus interest. That same day, the iStore calls Kendall and says that he has not been keeping up with his payments on the headphones and that they will soon be taking legal action against him. To make matters even worse, Kendall learns that his father now owns half of Vaulter and is moving the operation into his own building. Kendall is furious and when he confronts his father, Logan says "Son, this is business. Start learning." Kendall tries to cancel the lease agreement with PropertyWorld but is told he will have to pay R50 000 immediately if he wishes to do so. Kendall is upset, confused and worried about all of the above. He decides to go partying with his friend Stewy. That night they are caught in possession of cocaine and they are both are arrested. Stewy tells Kendall, "Don't worry bro, nothing will happen to us. We're just kids." You are Kendall's lawyer. Advise him in full of his legal position based on what has taken place. Your answer must include any legal remedies available to Kendall as well as any potential civil and/or criminal liability he is facing. You must cite authority in full.

PROBLEM QUESTIONS MARKING RUBRIC Problem questions in exams and tests will be marked according to the marking rubric below. The rubric is a guideline, and the percentage mark for a particular question may be adjusted if this seems appropriate. 1. Rules and issues [about 40% of the mark for the question] a) Student correctly identifies the core issues and problems b) Student correctly identifies the relevant rules of law (ie chooses the right rules to solve the problem) c) Student formulates the rules in a way that is precise, accurate, unambiguous, and complete d) Student applies the rules correctly e) Student provides authority for the rules 2. Essay writing [about 40% of the mark for the question] a) Essay has a clear and logical structure b) Student is able to make a clear, logical, cogent and convincing legal argument that is directed towards solving the problem c) Student expresses themselves clearly in unambiguous language d) Student references correctly e) Student uses correct grammar and spelling 3. Intelligent use of authority [about 10% of the mark for the question] a) Student provides enough authority (case law, statutes, reference to the Constitution where appropriate - see also 1e above) b) Student uses this authority in an intelligent way. That is, they work with legal authority to make their argument 4. Insight [about 10% of the mark for the question] a) Student demonstrates a good understanding of and insight into the legal area concerned. b) Student shows flashes of brilliance and flair and demonstrates confidence in working with the law.