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BLW512S - BUSINESS LAW - 2ND OPP - JAN 2020 |
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NAMIBIA UNIVERSITY
OF SCIENCE AND TECHNOLOGY
FACULTY OF HUMAN SCIENCES
DEPARTMENT OF SOCIAL SCIENCES
QUALIFICATION: BACHELOR OF ACCOUNTING / BACHELOR OF CHARTERED
ACCOUNTANCY/BACHELOR OF ENTERTRENEUSHIP
Q UALIFICCAATTIION CODDEE:
LEVEL: 5
07BACC/07BOAC/07BENT
COURSE CODE: BLW 512S
COURSE NAME: BUSINESS LAW
SESSION: JANUARY 2020
PAPER:
THEORY AND CASE STUDY
DURATION:
2 HOURS
MARKS:
100
EXAMINER(S)
SECOND OPPORTUNITY QUESTION PAPER
MS.WABOMBA
MODERATOR: | MS. NGHISHEKWA
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
THIS QUESTION PAPER CONSISTS OF 8 QUESTION AND 5 PAGES (Including this front page)
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QUESTION 1
Identify the different types of termination of the contract of lease, as stated in the following
statements below:
1.1
In a situation where, either the lessor or the lessee’s assets are less than the liabilities.
(2)
1.2
An indefinite contract of lease, where either party, has to terminate the lease
agreement within a reasonable time.
(2)
1.3
Where the lessor is no longer the owner of the leased property.
(2)
1.4
A contract where, either the lessor or the lessee dies during the existence of the
contract.
(2)
1.5
A contract that comes to an end because of the fixed period of time agreed upon by the
parties.
(2)
[10]
QUESTION 2
2.1
John is a farmer that has rented a farm from Tom, for a period of 15 years. Tom has now
sold the farm without letting the buyer know about the lease agreement between John
and Tom. The lease agreement was not registered against the title. Advise John of his
rights if any.
(4)
2.2
Assume that Tom inherited the farm from his grandfather; will your answer be
different?
(3)
2.3
What are the duties of a lessor?
(4)
[11]
QUESTION 3
3.1
John is an IT student at NUST. He has a part —time job with, WC IT Company. He has
rented a flat. Of late, there has been a lot of work at NUST. Due to the heavy workload
at NUST, he has been unable to go to work. He has therefore failed to pay his rent. Most
of the properties on the rented premises are bought, in terms of the Credit Agreement
Act, Act 75 of 1980. The lessor has approached you for advice. Give the appropriate
advice.
(6)
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3.2
A was renting G’s house. During the existence of the lease agreement, A made
improvements on the property. The lease agreement is almost coming to an end. Advise
A, on what the law states, on the different types of improvements.
(10)
[16]
QUESTION 4
ABC partnership is in a financial stress. They owe both themselves as partners and outside
creditors. John, one of the partners has offered a car for the partnership use. It is still in his
name and has not been transferred to the partnership. Answer the following questions.
(a) Can the partners view the car as part of the partnership fund?
(3)
(b) Would your answer be different if creditors also want to lay aclaim onthecar? (3)
(c) List different types of partnerships.
(3)
[9]
QUESTION 5
5.1 What is the difference between the risk rule and impossibility of performance? (5)
5.2
Jane and James entered into a contract of purchase and sale in respect of African clothing
material. Jane ordered 100 meters, for NS 10 per meter. There was no condition attached
to the contract. Just before the 100 meters were cut off from the main roll, a bottle of
wine spilled on the material and was badly stained. Who bears the risk?
(10)
53
Would your answer be different if James was supposed to deliver the material on
Thursday but failed to do so and the wine spills on the material on Friday?
(3)
[18]
QUESTION 6
6.1
A has rented a house from B. The lease agreement has a clause that states that the
lessor has a right to inspect the rented property from time to time. The lessee is not
happy with the clause and wants it removed. Advise the lessee.
(4)
6.2
in addition to the general requirements for a valid contract of lease agreement, parties;
must also agree on 3 essential characteristics (essentialia), name them.
(3)
[7]
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QUESTION 7
Tom, Dick and Harry are partners in a fishing business. According to their partnership agreement
Tom is the managing partner, with authority to bind the partnership in any agreements to a value
of NS100 000. For contracts in excess of this amount the consent of Dick and Harry are required.
Without consulting with his partners, Harry buys freezing equipment for fish from ABC Suppliers
to the tune of NS500 000. Tom and Dick are of the opinion that this is an unnecessary expense,
and deny liability.
Answer the following questions:
7.1 Can ABC Suppliers hold the partnership liable? Discuss in full.
(7)
7.2. When ABC Suppliers institute legal action against the partnership they learn that the
partnership has dissolved. Does this mean they cannot recover their money? Discuss in full.
(4)
7.3. Would your answer to question 7.2 above be different if Harry was an extra-ordinary
partner?
(4)
[15]
QUESTION 8
On 15 August 2017 The Namibian newspaper reported that “Bank Windhoek has repossessed a
front-end loader of the Katima Mulilo Town Council because the person who sold it to the council
owed the bank money.” According to the newspaper article a local businessman (B) sold the
front-end loader to the town council late last year, after he had purchased it in terms of an
instalment sale agreement with a Bank Windhoek.
Answer the following questions with regard to the above facts. Motivate your answers as
required.
8.1 In the above scenario, identify the credit grantor and the credit receiver respectively.
(2)
8.2
Instalment Sale Agreements are typically made subject to a suspensive condition. What is
the effect of this condition?
(5)
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8.3 Would your advice be any different if the Town Council had bought the front-end loader
at a sale in execution?
(4)
8.4
Name 3 (three) circumstances in which a purchaser will not be protected against eviction?
(3)
[14]