KTH 220: PRACTISE QUESTIONS (CAPILOT TEST)

THEME 8: Miscellaneous duties

Test: Duties of the Buyer and Miscellaneous
Aspects/Duties
Multiple Choice Questions
1. What is the most important duty of the buyer in a
contract of sale?
a) To inspect the object sold
b) To pay the purchase price in legal tender
c) To deliver the object sold
d) To sign the contract
2. Which of the following is NOT considered legal tender?
a) Cash
b) Bank transfer
c) Cheque
d) Electronic funds transfer
3. In which scenario can the purchase price be withheld
by the buyer?
a) When the buyer is dissatisfied with the object
b) When the exceptio non adimpleti contractus is
applicable
c) When the buyer changes their mind
d) When the seller requests it
4. When must payment and delivery occur in a cash sale
of movables?
a) On the same day or at the same time
b) Within a week
c) On a future date
d) After the object is delivered
5. What is usually required for the sale of immovables to
be completed?
a) Immediate cash payment
b) Delivery of payment guarantees
c) Payment in installments
d) Verbal agreement
6. Under what condition can a seller demand all
remaining installments at once?
a) If the buyer misses one payment
b) If the contract includes an acceleration clause
c) If the buyer requests it
d) If the seller decides to
7. Where must the purchase price be paid if there is no
agreement on the place of payment?
a) At the buyer’s residence
b) Where the contract was concluded or where the object
is delivered
c) At the seller’s residence
d) At a neutral location
8. What can the seller claim if the buyer fails to receive
the object sold and the seller incurs expenses for its
protection and upkeep?
a) Compensation for emotional distress
b) The full purchase price
c) Necessary or useful expenses incurred
d) A penalty fee

Application Questions:
Scenario: John agrees to purchase a car from Sarah for
R200,000. They agree that John will pay in monthly
installments over two years. The contract includes an
acceleration clause. After making six payments, John
misses the next two installments. Sarah decides to invoke
the acceleration clause. Question:
Explain whether Sarah is entitled to demand the full
remaining balance of the purchase price immediately.
What are the legal implications of the acceleration clause
in this scenario?
Answer:
The contract between Sarah and John includes an
acceleration clause, which allows the seller to claim the
full remaining purchase price from the buyer where he
misses to pay an installment. Therefore, Sarah is entitled
to demand the full balance of the purchase price
immediately.
Scenario: Emily sells her house to David for R1,500,000.
They agree that David will take possession of the house
immediately but will only pay the purchase price upon
registration of the property in his name. David moves into
the house and starts living there. However, due to delays
in the registration process, the transfer is postponed for
three months. During this period, Emily incurs expenses
for maintaining the garden and repairing a broken
window. Question:
Discuss whether Emily can claim the maintenance and
repair expenses from David. What are David’s obligations
regarding occupational rent and transfer costs during the
delay in registration?
Answer:
Where the buyer fails to receive the object sold, and the
seller has expenses necessary for protection and upkeep
of object sold, the seller may claim these expenses of the
buyer.
In immovable property sale, the buyer must pay for the
transfer costs and the transfer duty and seller’s has
obligation to pay for the value- added tax (VAT) in terms
of Strydom case. The buyer must also pay the
occupational rent to the seller where the buyer enjoys
occupation of immovable property before the contract
becomes perfecta.

Short Questions:
 1. Explain the concept of “exceptio non adimpleti
contractus” and provide an example of when it might
be applicable.
Your Answer:
Exception non adimpleti is a defense which allows each
party to a reciprocal contract to refuse the performance
of an obligation under the contract.

2. Describe the difference between a cash sale and a

credit sale in terms of payment and delivery for
movables.
Your Answer:
In a cash sale payment and delivery must occur at same
time or at least same day. While in credit sale, payment
occur on future time where object has already been
delivered to the buyer.
3. What are the buyer’s duties regarding the receipt of
the thing sold if no date was agreed upon for
delivery?
Your Answer:
If no date was agreed upon for delivery, the buyer must
receive the object sold within a reasonable time after the
conclusion of the contract. If the buyer fails to do so, they
may be in breach of contract in the form of mora
creditoris.
4. What are the miscellaneous duties of the buyer when
immovable property is sold?
1. Buyer’s duty is to pay for the transfer cost and
transfer duty.
2. The buyer must pay occupational rent when he
enjoyed occupation of immovable before property
was registered under his name.
3. The buyer must transfer all the benefits accrued to
the property to the seller before contract became
perfecta or unless contract says otherwise.
Sure! Here are some True/False questions based on the
provided notes:

1. A cheque is considered legal tender.

True
False
2. The buyer can withhold the purchase price if the
exceptio non adimpleti contractus is applicable.
True
False
3. In a cash sale of movables, payment and delivery
must occur at the same time or on the same day.
True
False
4. In a credit sale of movables, payment occurs on a
future date after the object has been delivered.
True
False
5. Payment of the purchase price is a prerequisite for
the passing of ownership in the sale of immovables.
True
False
6. The buyer is entitled to pay in installments only if
there is an agreement allowing this method of
payment.
True
False
7. If a buyer misses an installment payment, the seller
can always demand all remaining installments at
once.
True
False
8. The purchase price must be paid where the contract
was concluded or where the object is delivered if
there is no agreement on the place of payment.
True
False
9. The buyer must receive the object sold on the date
and at the place agreed upon for delivery.
True
False
10. The seller can claim necessary or useful
expenses incurred for the protection and upkeep of
the object if the buyer fails to receive it.
True
False
11. The buyer must pay transfer costs and transfer
duty when immovable property is sold.
True
False
12. The seller is responsible for paying value-added
tax (VAT) when immovable property is sold.
True
False
13. The buyer must pay occupational rent if they
enjoy occupation of the property before registration
in their name.
True
False
14. The buyer must deliver all benefits accrued to
the property before the contract became perfecta to
the seller, unless otherwise contracted.
True
False
Theme 7: Warranty against latent defects
Study Questions:
Study Questions:
1. Types of Warranties:
What is the difference between a warranty given by
operation of law (naturale) and a warranty given
contractually (incidentale)?
How does the type of warranty affect what the buyer can
claim from the seller?
2. Definition of Latent Defect:
What constitutes a latent defect according to the
definition provided?
How does a latent defect differ from a patent defect?
What criteria determine whether a defect is latent or
patent?
3. Legal Implications:
What must a buyer prove to establish the existence of a
latent defect at the time of the contract?
Why is a concealed servitude not considered a latent
defect, and what legal implications does it have?
4. Case Law:
Summarize the key points from the Holmdene Brickwork
v Roberts Construction case regarding latent defects.
What was the significance of the Waller v Pienaar case in
the context of latent defects?
Explain the ruling in the Odendaal v Ferraris case and its
relevance to latent defects.
Warranty by Operation of Law:
What is an implied warranty against latent defects, and
when does it apply?
How does a voetstoots (as is) clause affect the implied
warranty against latent defects?

Answers:
 The warranty by operation of law applies
automatically and the warranty given contractually is
an express or tacit warranty.
 The type of warranty affects what a buyer may claim
from the seller.
 Latent defect makes the object unfit for its intended
purpose or normal use.
 Latent defects require thorough examination to be
discovered, while patent defects can be noticed by a
diligent person.
 The factors to determine whether a defect is latent,
or patent is whether a reasonable person would have
noticed the defect after examining the object.
 The buyer must prove that the defect existed before
the conclusion of contract, and he had no knowledge
about it.
 Concealed servitude would constitute a form of
eviction because is restrict the use, enjoyment, and
disposal of object.
  In Holmdene v Roberts case definition of defect was
expanded, it also gave factors to determine whether
a defect is latent or patent.
 The Waller v Pienaar provided that the buyer must
not have knowledge of the defect when concluding
the contract.
 Odendaal v Ferraris ruled that servitude restrict the
use, enjoyment, and disposal of the object sold.
 Implied warranty against latent defect forms part of
the contract of sale and it applies automatically.
 Voetstoots clause excludes the implied warranty
against latent defects.
Guarantees distinguished from Misrepresentation and
Sales talk: True/False questions:
True/False: A contractual guarantee is a promise made
within a contract to ensure certain conditions or qualities
of a product or service.
True/False: Misrepresentation can only be fraudulent or
negligent.
True/False: If a misrepresentation is part of a contract, the
affected party can seek remedies for breach of contract.
True/False: Misrepresentation made outside the
contractual context can lead to delictual liability if it was
made intentionally or negligently.
True/False: In the case of an innocent misrepresentation,
the affected party can use aedilitian actions in contracts
of sale or exchange.
True/False: Sales talk is considered a guarantee or
representation.
True/False: If sales talk is untrue, the buyer has no right of
recourse against the seller.
Additional Practice Questions
Here are a few more questions to help you prepare:

Multiple Choice: Which of the following is NOT a type of

misrepresentation?
A) Fraudulent
B) Negligent
C) Innocent
D) Intentional
Short Answer: Explain the difference between a latent
defect and a patent defect.
Essay: Discuss the implications of the Holmdene v
Roberts case on the understanding of latent defects in
contract law.
Scenario: Imagine you bought a house, and after moving
in, you discover that the roof leaks during heavy rain.
Discuss whether this could be considered a latent defect
and what remedies might be available to you.
Flashcards
Creating flashcards for key terms and cases can also be
very helpful. Here are a few examples:

Term: Latent Defect

Definition: A defect that is not discoverable by a
reasonable inspection and makes the item unfit for its
intended purpose.
Case: Waller v Pienaar
Key Point: Established that the buyer must not have
known about the defect when concluding the contract.

Multiple Choice: Correct! The answer is D) Intentional.

Intentional misrepresentation is not a recognized
category; instead, we have fraudulent, negligent, and
innocent misrepresentations.
Short Answer: Correct! A latent defect is indeed one that
cannot be discovered by a diligent person, while a patent
defect can be noticed or discovered by a diligent person.
Essay: Correct! The Holmdene v Roberts case expanded
the definition of latent defects and provided factors to
determine whether a defect is latent or patent.
Scenario: Well done! The leaking roof could be considered
a latent defect because it might only be discovered
through thorough examination or by an expert. You
correctly identified the two remedies available: Actio
redhibitoria (to claim for restitution) and Actio quanti
minoris (to claim for a reduction in the purchase price).

Pre-emptive right and option test

1. Multiple Choice Questions
1.1 What is a pre-emptive right?
a) A right to buy property at any time
b) A right to be the first to make an offer if the owner
decides to sell
c) A right to sell property at any time
d) A right to lease property

1.2 When can the holder of a pre-emptive right make or

receive an offer to buy the property?
a) Anytime
b) Only after the owner decides to sell
c) Before the owner decides to sell
d) Never

1.3 What happens if the holder of an option decides to

accept the offer within the specified period?
a) The option contract is terminated
b) A deed of sale is created
c) The offer is withdrawn
d) The property is leased

1.4 If the option is not exercised within the specified

period, what happens to the option contract and the offer
to sell?
a) They remain valid indefinitely
b) They are terminated
c) They are transferred to another party
d) They are renegotiated

2. True or False Questions

2.1 A pre-emptive right allows the holder to make an offer
to buy the property before the owner decides to sell.
True / False

2.2 An option contract obliges the seller to keep the offer

open for a determined period.
True / False

2.3 If the holder of an option does not accept the offer

within the specified period, the option contract, and the
offer to sell are terminated.
True / False

2.4 The holder of a pre-emptive right can force the owner

to sell the property.
True / False

3. Short Answer Questions

3.1 Explain what a pre-emptive right is and provide an
example.
A= A pre- emptive right is a personal right that is
created by an agreement, giving the holder of pre-
emptive the first and exclusive opportunity to buy
the property if the owner decides to sell it. Imagine
Edward owns a house and grants Bella a pre-
emptive right if Edward decides to sell the house,
he must first offer it to Bella. Bella now has
exclusive right to buy the house before it is offered
to someone else however if Bella declines the offer
Edward is free to sell the house to someone else.
3.2 Describe the process and implications of exercising
an option.
A= Option is a contract that gives the person
holding the option the right to buy or sell a property
at a price within specifies period. During this period
the seller cannot withdraw the offer to sell the
property to someone else, however if the person
with the option right does not exercise the right
within agreed period the option contract and offer
to sell are terminated.
3.3 What are the key differences between a pre-
emptive right and an option?
A= pre-emptive right is personal right by virtue of
agreement giving the person the first opportunity
to buy the property while option is a personal right
that gives the person holding the option the right to
buy or sell property at a price within specific period.