Consequences of non-compliance with formalities and termination rights under the Alienation of Land Act and Consumer Protection Act (CPA): Chapter 8 Flashcards
(16 cards)
What is the legal status of a land sale contract that does not comply with required formalities?
The contract is null and void.
Can a party who has performed under an invalid contract claim counter-performance?
No.
Can a party who has already delivered performance under an invalid contract reclaim it?
Yes.
What may the buyer claim if performance was made under a void contract?
(i) Prescribed interest on any payment made.
(ii) Reasonable compensation for:
Essential expenses for protection/improvement of land (with or without consent), and
Improvements made with owner’s express or tacit consent that increase market value.
What may the seller claim from the buyer if possession was granted under an invalid contract?
(i) Reasonable compensation for occupation, use, and enjoyment of land.
(ii) Compensation for intentional or negligent damage by the buyer or anyone for whom they are responsible.
If both parties completed performance under a formally invalid contract, what is the contract status?
It is deemed valid and binding from the time of its conclusion.
Can parties surrender or renounce these statutory rights and consequences?
No, any such surrender is null and void.
What does the CPA say about the consequences of non-compliance with formalities?
The CPA is silent on the consequences of non-compliance with its own formalities.
Under what conditions can a buyer terminate a deed of alienation unconditionally within 5 days?
If:
The purchase price does not exceed R250,000,
The buyer is a natural person, and
The land is used for residential purposes.
How must termination be done under section 29A?
By written and signed notice within five days after signature.
What must happen if the contract is terminated under section 29A?
All payments received from the buyer must be refunded within 10 days of the notice.
Under the CPA, when can a consumer cancel a contract and return goods?
Within 5 business days if the goods were acquired through direct marketing.
Who bears the risk and cost of returning goods under CPA cancellation?
The consumer.
How long does the supplier have to refund the consumer after cancellation under CPA?
Within 15 business days.
What must contracts under CPA include if applicable?
A provision informing the consumer of their right to rescind (cool-off).
What qualifies as “direct marketing”?
Approaching a consumer in person, by mail, or electronic communication to promote goods/services or request a donation.
