Study Unit 1: Introduction to South African Law of Purchase and Sale

These flashcards cover key principles of South African law regarding purchase and sale contracts, including definitions, characteristics, and legal requirements.

What origins does the South African law of purchase and sale have?

It originates from Roman and Roman Dutch law.

What are the key elements of a contract of sale?

It includes a reciprocal agreement to buy and sell, where the seller intends to deliver a specified object with rights, and the buyer intends to pay a specified price.

What is the definition of a contract of sale?

A specific, nominated, and reciprocal agreement to buy and sell.

What distinguishes a contract of lease from a contract of sale?

In a contract of lease, ownership does not transfer, whereas in a contract of sale, ownership is intended to pass.

What is an essential characteristic of a contract of sale?

The transfer of ownership.

What happens upon the mere conclusion of a contract of sale?

Ownership does not transfer; the buyer only obtains a personal right against the seller.

What are the three essentials (essentialia) of a valid contract?

1. Consensus/Intention, 2. Thing or object sold, 3. Purchase price.

Can a seller legally sell something they do not own?

Yes, the seller does not need to be the owner to conclude a valid contract.

What is 'res aliena' in the context of contracts of sale?

It refers to an object of which the seller is not the owner.

What is required for the purchase price in a contract of sale?

The price must be a monetary value that is certain and agreeable between the parties.

What formalities are required for contracts under the Alienation of Land Act (ALA)?

A contract for the sale of land must be in writing and signed by the parties.

What is a voetstoots clause?

A clause that excludes the seller's liability for latent defects, meaning the object is sold 'as is'.

What is the doctrine of passing of risk?

It determines who bears the loss if the object is damaged or destroyed; generally, risk passes to the buyer once the sale is perfected.

What influence does the Consumer Protection Act (CPA) have on contracts?

It provides consumer rights regarding quality, safety, and suitability of goods, affecting traditional sales contracts.

What does the 'cooling-off' right under the ALA entail?

It allows a buyer to terminate the contract within five days if certain conditions are met.

What does the CPA stipulate regarding goods sold?

Goods sold must be of good quality, in working order, and free from defects.

What are a buyer's rights in case of total eviction?

The buyer is entitled to cancellation of the contract and repayment of the purchase price.

What is the actio empti?

A remedy available to buyers in cases of warranty breaches and latent defects.

What is a pre-emptive right?

A personal right that entitles the holder to a preferential opportunity to contract if the owner decides to sell.