Contract Law

Question 1

What is a contract?

Answer 1

A contract is a verbal or written agreement between two or more consenting parties that both have the legal capacity to conclude the agreement. (Legally enforceable). The agreement must be legal.

Question 2

List the 5 requirements for a valid contract

Answer 2

Consensus
Capacity
Formalities
Legality
Physically Executable

Question 3

List the characterisitcs of contracts (9)

Answer 3

Warranty
Bonae fidei
Consensual
Reciprocity
There must be at least two parties to an agreement
Promises of undertakings
Consideration
Freedom of Contract
Performance

Question 4

In a valid contract, briefly explain the following:
Consensus

Answer 4

The minds of the parties must meet on all material aspects of their agreement

Question 5

In a valid contract, briefly explain the following:
Capacity

Answer 5

The parties must have the the necessary capacity to contract

Question 6

In a valid contract, briefly explain the following:
Formalities

Answer 6

Where the agreement is required, unusally, to be in a certain form, these formaties must be observed

Question 7

In a valid contract, briefly explain the following:
Legality

Answer 7

The agreement must be lawful, that is mot prohibited by statue or common law

Question 8

In a valid contract, briefly explain the following:
Physically Executable

Answer 8

The obligations undertaken must be i) determinable and ii) capable of performance when the agreement is entered into

Question 9

What is a void contract

Answer 9

Contacts where one or more of the requirements for a valid contract are missing.

Question 10

What is a voidable contract

Answer 10

Voidable contracts are contracts where an agreement was concluded betweent he parties but a material deficiency was present at the time when the contract was concluded.

Examples include:

Duress
MIsrepresentation
Economic bribery

Question 11

List the tree contents of a contract

Answer 11

Essentialia
Naturalia
Incidentalia

Question 12

Briefly describe Essentialia

Answer 12

Those disnctive terms used to identify or classify a contract.
Examplle:
The essentialia of a contract of sale: Are terms stupulating that property must be delivered and that the purchase price must be paid

Question 13

Briefly explain Naturalia

Answer 13

Terms automatically included in any contract belonging to one of the classes of specific contracts traditionally recognised by our law.

They can therefore be said to be implied by law.

Question 14

Briefly explain Incidentalia

Answer 14

The terms other then than the naturalia and essentialia.

They are the additioanl terms agreed upon by the parties that supplement or modify the rights and duties incorporated by law into the particular contract in question - namely, the naturalia

Question 15

Who do not have capacity for a contract

Answer 15

Infants Age (0-6)
Deemed phhysically incapable by a court of law (Mentally incapable)
Severly intoxicated

Question 16

People who have limited capacity

Answer 16

Minors (7-17)
Married persons
Sequestrated insolvent
Prodigal

Question 17

Name the three types of Capacities (Degree of which Natural Persons can sign)

Answer 17

Full capacity
Limitied capacity
No capacity

Question 18

List ways in which a contract is terminated (6)

Answer 18

Mora Debitoris
Positive Malperformance
More Creditoris
Repudiation
Prevention of performance

Question 19

List the principles in which commercial contracts need to occur (4)

Answer 19

Risk Management
Tax Efficiency
Business Practice
Trade Usages

Question 20

List two items and or skills that Engineers offer

Answer 20

Services
Products

Question 21

Define Juristic Persons

Answer 21

These entities cannot contract by themselves and are represented by specific indiciduals (natural persons) who have been appointed to contract on their behalf. Usually directors, and must be specified in the contract

Question 22

List 5 ways in which one can enter a bilateral or multilateral agreement

Answer 22

Government or private propert company lender
Requests for Proposal
Request for quote
Public media
Registered/preapproved suppliers.

Question 23

List 7 guidelines for drafting contracts

Answer 23

1. Establish what your requirements are and do proper research;
2. Provide for any eventuality that might become a potential dispute in the future;
3. Consider inserting a clause for arbitration (dispute resolution);
4. Keep the language simple and avoid ambiguous or vague terminology that can later prove to be
   problematic;
5. Ensure that the object of performance and the parties are properly described to avoid confusion;
6. Ensure that the agreement complies with all regulatory legislature and rules of Engineering practice;
7. Prepare a first draft and have it checked by a partner, colleague or attorney for advice.

Question 24

Briefly describe Mora debitoris

Answer 24

The debtor culpabbly fails to make timeous performance of his or her obligations. (relates to the time of the performance)

Question 25

Briefly describe positive malperformance

Answer 25

The debtor performs in a defective or incomplete manner (Relates to the content of the performance made)

Question 26

Briefly describe Mora creditoris

Answer 26

The creditor culpably fails to cooperate timeously with the debtor so that the latter may perform his or her obligations

Question 27

Briefly describe repudiation

Answer 27

Either party indicates an unequivocal intention not to honour the agreement

Question 28

Prevention of performance

Answer 28

Either party renders the performance of the contract impossible

Question 29

List three types of remedies

Answer 29

Remedy at keeping the contract alive
Remedy at cancelling the agreement
Remedy aimed at compensating the innocent party for loss or harm caused by the breach

Question 30

List ways in which a contract can be terminated (4)

Answer 30

Compliance
New Contract
Debt comparison
Force Majeure