Are you preparing for Contract law job interview? If yes, then we’ve a solution to win your ideal job. To be precise about Contract law an agreement between private parties creating mutual obligations enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. There are various companies that offers job roles like Legal Associate, contract specialist / techno legal expert, Contracts Analyst 2, Sr. Legal Counsel, Junior Lawyer, Legal – Analyst, Legal Associates, Contract Drafting Specialist/ Lead, Contract Management and many other roles too. We have provided everything in our site right form the Contract law Interview Questions and Answers to where to search for the jobs. We have provided a clean and neat process on our site wisdomjobs.com.
Question 1. Discuss The Impact Of The Consumer Protection Act Upon The Law Of Contract With Reference To Its Aims, Objectives, Scope, National Regulatory Institutions, And Sanctions?
The CPA is bound to have a huge impact on the conduct of businesses in South Africa, and the law of contract. The primary purpose of the Act is to protect consumers from exploitation in
the marketplace, and to promote their social and economic welfare.
More specifically, it aims to:
The scope of the Act is very wide. It applies to:
A supplier is any person (including a juristic person, trust, and organ of State) who markets any goods or services.
A consumer includes not only the end-consumer of goods and services but also:
The Act does not apply to any transaction in terms of which goods and services are promoted or supplied:
These rights are protected and enforced not only through the courts, but the National Consumer Commission and the National Consumer Tribunal. Failure to comply with provisions of the Act might attract various sanctions, commencing with compliance notices and leading possibly to the imposition of fines and criminal penalties. Contractual provisions in contravention of the Act may be declared null and void to the extent of non-compliance.
Question 2. List And Very Briefly Discuss The Requirements For A Valid Offer And Acceptance?
Question 3. State The Ways An Offer May Be Terminated?
Question 4. Discuss And Distinguish Between An Option And A Right Of Pre-emption?
An option is a substantive offer, reinforced by an agreement in terms of which the offeror undertakes to keep his offer open to the offeree for a specified period.
A right of pre-emption is a type of right of preference. It is given by a prospective seller to a prospective purchaser, to give the purchaser preference if the prospective seller should decide to sell.
There are significant differences between the two. In the case of an option to buy, the grantor has already made a firm offer to the grantee, and the power to conclude the sale lies exclusively in the hands of the grantee.
With a pre-emption agreement, however, there is as yet no firm offer “on the table” – merely an undertaking to make an offer to the grantee if the trigger event occurs (usually, if the grantee decides to sell the property). The grantor accordingly retains the power to decide whether or not to sell, and cannot be compelled to do so unless or until the trigger event has occurred.
Question 5. State The Requirements For Duress And Undue Influence?
DURESS (improper pressure that amounts to intimidation):
Question 6. State The Elements For Commercial Bribery As Held In Extel Industrial (pty) Ltd V Crown Mills (pty) Ltd?
Question 7. State The Requirements For Restitutio In Integrum?
Question 8. State The Elements Of A Fraudulent Misrepresentation?
Question 9. Define Misrepresentation?
A misrepresentation is generally a false statement of past or present fact (not law or opinion) made by a contractual party to another prior to the conclusion of a contract and regarding some matter or circumstance relating to the contract.
Question 10. Define Dictum Et Promissum?
A material statement made by the seller to the buyer during negotiations, bearing on the quality of the res vendita and going beyond mere praise and commendation.
Question 11. State The Test To Determine If A Restraint Of Trade Clause Is Enforceable (basson Test)?
Question 12. Discuss The Factors Taken Into Consideration In Determining Whether The Legislator Implicitly Intended The Contract To Be Void For Statutory Illegality?
What is the object of the statute and what mischief (harm) is the statute directed against? If the validity of the contract brings about the harm the statute is directed against, it is an indication that the legislator intended the contract to be void.
Question 13. Distinguish Between Initial Impossibility Of Performance, Supervening Impossibility Of Performance, And Prevention Of Performance?
If a performance is objectively impossible at the time of conclusion of a contract, no obligation arises. To render performance impossible, it is not sufficient that a particular party cannot perform, that is, subjective impossibility. The impossibility must be so serious that nobody can render the performance – that is, it must be objectively impossible. An example of impossible performance is where A agrees to sell his house to B, but unbeknown to them the house has already been destroyed by a fire. Initial impossibility of performance prevents a contract from arising at all.
If, after the conclusion of the contract, performance becomes objectively impossible without the fault of the debtor, as a result of an unavoidable and unforeseen event, this is known as supervening impossibility of performance, and the obligation to perform is also, as a general rule, extinguished. The requirements for supervening impossibility of performance are:
If, after the conclusion of the contract, performance on either side becomes impossible owing to the fault of either the debtor or the creditor, the contract is not terminated, but the party who rendered the performance impossible is guilty of a breach of contract known as prevention of performance. It is not necessary that the performance should be objectively impossible in order for the breach to arise; subjective impossibility will suffice.
Question 14. Distinguish Between Suspensive Conditions, Resolutive Conditions, Suspensive Time Clauses, And Resolutive Time Clauses?
SUSPENSIVE CONDITION: Performance of an obligation (which is an uncertain future event which may or may not occur) is suspended, and enforceable only when that event has been fulfilled or has failed.
RESOLUTIVE CONDITION: Performance of obligations should operate in full, but will come to an end if an uncertain future event does or does not happen.
SUSPENSIVE TIME CLAUSE: Performance of obligations postponed/suspended until an event or time that is certain to arrive in the future.
RESOLUTIVE TIME CLAUSE: Obligations terminate at a certain date or happening of a certain future event.
Question 15. Briefly Discuss Tacit Terms?
A tacit term is one that the parties did not specifically agree upon, but which (without anything being said) both or all of them expected to form part of their (oral or written) agreement. It is a wordless understanding having the same legal effect as an express term. In ascertaining whether a contract contains a tacit term, the courts often employ the officious bystander test:
The court supposes that an impartial bystander had been present when the parties concluded their agreement and had asked the parties what would happen in a situation they did not foresee and for which their express agreement did not provide. If they were to agree that the answer to the stranger’s question was self-evident, they are taken to have meant to incorporate the term into their contract and to have tacitly agreed on it.
Question 16. What Is The Parol Evidence Rule?
The parol evidence rule declares that where the parties intended their agreement to be fully and finally embodied in writing, evidence to contradict, vary, add to, or subtract from the terms of the writing is inadmissible.
Question 17. State The Different Forms Of Breach Of Contract?
Question 18. Discuss Mora Debitoris And Mora Creditoris And Distinguish Between Them?
Mora debitoris is the unjustifiable failure of a debtor to make timeous performance of a positive obligation that is due and enforceable and still capable of performance in spite of such failure.
Mora ex re occurs where the debtor fails to perform on or before the due date expressly or impliedly stipulated by the parties in their contract. Mora ex persona occurs where no time for performance has been stipulated, and the creditor demands that the debtor perform on or before a definite date that is reasonable in the circumstances (by means of a letter of demand, or oral demand).
Mora creditoris is a form of breach of contract by a creditor. It occurs in cases where a creditor is obliged to lend his or her cooperation, and culpably fails to do so timeously.
Question 19. Define Repudiation?
Repudiation is the demonstration by a party, by words or conduct, and without lawful excuse, of an unequivocal intention no longer to be bound by the contract or by any obligation forming part of the contract.
Question 20. State The Requirements Than An Innocent Party Must Prove In Order To Succeed With A Claim For Damages?
Question 21. Write Notes On The Difference Between General Damages And Special Damages?
General damages are those which flow naturally and generally from the breach in question, and the law presumes that the parties contemplated them as a possible result of the breach. The guilty party is summarily held liable for general damages.
In contrast, special damages are those that do not flow naturally and generally from a specific form of breach. The guilty party is only liable for special damages in certain circumstances. The courts use two principles to determine the extent of liability in the case of special damages: the contemplation principle, and the convention principle.
In terms of the contemplation principle, liability is restricted to damages that the parties actually or reasonably must have contemplated as a probable consequence of the breach.
According to the convention principle, liability is limited to those damages that may be proved on the basis of the contract. The innocent party has to prove either an express or implied provision concerning the payment of damages.
Question 22. Discuss The Exceptio Non Adimpleti Contract Us With Regard To Its Definition, The Principles Of Reciprocity, How Reciprocity Is To Be Determined, As Well As When The Defence Can Be Raised?
The exceptio non adimpleti contractus is a defence that can be raised in the case of a reciprocal contract. It is a remedy aimed at keeping the contract alive. It permits a party to withhold his or her own performance, and to ward off a claim for such performance until such time as the other party has either performed or tendered proper performance of his or her own obligations under the contract.
The exceptio non adimpleti contractus is available when two requirements are met:
Question 23. State The Requirements For A Valid Cession?
Question 24. State The Ways In Which Obligations May Be Terminated?
Question 25. Write Brief Notes On Release And Waiver?
A release is an express or tacit agreement that the debtor be freed from an obligation or obligations. It therefore has the effect that the debtor need not perform. The debtor may be released in whole or in part. The term “waiver” is often used synonymously with the concept of a release agreement. However, sometimes waiver is used to denote a unilateral act of abandoning a right or remedy that exists for the sole benefit of the party abandoning the right or remedy.
Question 26. Write Brief Notes On Novation?
A novation is an agreement to extinguish or replace one or more existing obligations with a new obligation. Accessory obligations to the original debt, such as a pledge or suretyship, are extinguished by an agreement to novate the debt. The parties may agree to replace the debtor with a third party, provided of course that the third party agrees to such novation.
Replacement of a debtor by novation is called delegation. If an original obligation is void, a novation of the obligation will also be void. But if the novation itself is void, the original obligation will continue to exist.
Question 27. Write Brief Notes On Compromise?
Compromise is an agreement in terms of which parties settle a dispute or some uncertainty between themselves. Compromise differs from true novation in that compromise does not require a valid old obligation to have existed. The purpose of a compromise is to secure a final settlement of a dispute or uncertainty, sometimes as to whether there is a debt at all.
Question 28. Write Brief Notes On Set-off, And The Requirements There For?
Where two parties have claims against each other, and the requirements for setoff are met, the debts can extinguish each other. If they are not for the same amount, the smaller debt is extinguished and the larger debt is reduced by the amount of the smaller debt.
The following four requirements must be met for set-off to operate:
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