N4 Mercantile Law
N4 Mercantile Law
N4 Mercantile Law
MERCANTILE LAW N4
1. Aims
2. Duration of instruction
3. Evaluation
4. Semester mark
5. Examination
6. Pass requirements
7. General information
8. Learning content
9. Literature reference
1. AIMS
1.1.1 To promote the basic principles of law and to impart to students how these principles
affect commercial enterprises in their relations with other businesses in day-to-day
transactions.
1.1.2 To assist students in thinking and reasoning logically, analytically and critically in
accordance with legal terminology and customary legal procedure, and helping them to
assess the possible legal implications of situations whenever they occur.
1.1.3 To offer students an insight into the legal environment within which the business
enterprise functions, in order to enable them to make informed decisions without any
harmful legal and costly implications.
1.1.4 To make students aware of the importance and value of the role the law plays in the
world of business and the value of conforming to a certain code of conduct, with the
emphasis on the promotion of character-formation and self-confidence in their business
interactions, as well as discipline.
1.2.1 To promote insight into basic legal principles, rules and practices which form the basis
for sound business, in order that they can become responsible future business people,
citizens, employees/employers and consumers.
1.2.2 To make students familiar with the legal rules with reference to the law of contract in
general, specific kinds of contracts, including the contract of sale, leases and the
contract of employment, the influence of legislation, with specific reference to the
National Credit Act, Consumer Protection Act and the Basic Conditions of Employment
Act.
1.2.3 To make students aware of the legal consequences of entering into contracts in general.
Evaluation takes place on a continuous basis by means of class tests, formal tests, an internal
semester test, practice-oriented assignments and an external examination.
In addition to the normal class tests as a regular form of evaluation, formal tests on completion
of each module, as well as an internal semester test are conducted.
These test marks will be calculated out of a mark of 70 which will contribute to the theoretical
component towards the final semester mark.
The following allocation is recommended:
20 30 50
The practical component can consist out of more than one practical assessment. Examples of
possible practical assessments are included in the syllabus, but the lecturer is not restricted to
this only and own initiative can be used. The final mark, which can consist of more than one
practical assessment, contributes 30 % towards the final semester mark.
A semester mark out of 100 is compiled by adding the theoretical mark (out of 70) and practical
mark (out of 30). The semester mark contributes 40 % towards the final mark.
The semester mark that is obtained remains valid for two years following directly upon the year
in which the semester mark was originally achieved and used. After this period, the mark is no
longer valid and the student has to register for the same subject again to obtain a new semester
mark.
3.2.1 Examinations
An external theoretical examination is conducted at the end of each semester. The paper is set,
marked and moderated externally.
Section A is compulsory and covers all the modules of the instructional offering.
The questions can consist of multiple choice questions, true/false questions, comparisons,
definitions and identification of legal principles. This section totals 50 marks.
Part B consists of four questions, any three of which must be answered. Each question counts
50 marks and can consist of sub-sections. Questions can take the form of application type
questions, case studies, direct and indirect longer discussion questions and shorter direct
questions.
Accent will be placed on testing candidates’ insight, their ability to apply their knowledge and to
illustrate their knowledge of the subject.
Number of papers 1
Knowledge 40
Concepts 20
Analysis, evaluation 20
Application 20
3.3 Evaluation of practical work
Separate measuring instruments are applied for the evaluation of practical work. Examples of
these measuring instruments can be rubrics, check lists and memoranda.
4. GENERAL INFORMATION
An interactive, didactic approach should be followed in order to equip students with the general
and particular skills for Mercantile Law in practice/ the job sector. Practical examples must
therefore be used on a continuous basis when lecturing this subject.
5 Leases 10 1 week
100
The weighted value per module out of 100 (%) is an indication of the period of time in which
the module should be concluded, as well as the estimated weight that is awarded to a module
during the setting of the question paper.
6. DETAILED SYLLABUS
1.1 General introductory remarks about the law in 1.1 Briefly discuss what is meant by the term ‘law’
South Africa and
indicate how it differs from other rules in South
• A set of rules Africa.
• Uncodified system
• Enforced by the State
• Differs from other rules that cannot be enforced
₋ To maintain order
₋ To maintain justice
1.6 Classification of the South African 1.6.1 Define the concept National Law.
Law
PRIVATE LAW 1.6.4 Briefly explain Mercantile Law and the aim,
place and task thereof in the public and
• Law of persons business sector of South Africa.
• Family law
• Law of things
1.6.5 Identify the applicable law in short case
• Law of obligations
studies/scenarios.
• The law of succession
• Mercantile Law
1.7 Judicial system in South Africa 1.7.1 Name and define the various courts.
• The Constitutional Court 1.7.2 Explain the principles that the jurisdiction of
• Supreme Court of Appeal court courts is restricted according to the category
• High Courts of court, with the Constitutional Court as the
• Magistrates’ court highest court.
• Special court (small claims court)
1.7.3 Draw a diagram to illustrate the hierarchy of
courts in South Africa.
POSSIBLE PRACTICAL COMPONENT:
- an obiter dicta
South Africa.
Examples from practice should be used Evaluation may take the following forms:
Make use of articles in newspapers to
illustrate various sources of the law Multiple choice questions
Google search True/false questions
Short case studies based on court
cases/newspaper articles
Direct questions
Practical tasks
MODULE 2: THE LAW OF CONTRACT: WEIGHTED VALUE 30
• Artificial persons
2.2.3.14 Describe what is meant by an
artificial person.
(f) Offer and acceptance through the post/mail (expedition 2.2.5.6 Briefly explain the time and the
theory) place where the contract is formed.
2.2.6 The agreement must not be vague 2.2.6.2 Explain the FIVE basic rules of
interpretation applied by the courts
to contracts where there is
vagueness.
2.2.7 The parties must be of the same mind as to the 2.2.7.1 Define the term ‘consensus’.
subject matter (the parties must have reached consensus)
₋ Influence on consent
2.2.7.3 Briefly describe the influence of a
mistake on consent.
₋ Co-debtors
₋ Third parties
₋ Contracts for the benefit of a
third party (stipulatio alteri)
₋ Assignment
₋ Cession
₋ Delegation
2.7 Breach of contract 2.7.1 Describe the term ‘breach of
contract’.
• Repudiation
2.7.9 Describe the term repudiation.
• Positive malperformance
(defective performance) 2.7.11 Briefly describe the two forms of
positive malperformance that exist,
namely faulty performance and the
debtor doing something which may
not be done according to the
agreement.
• Specific performance (in forma specifica) 2.7.14 Briefly define what is meant by
specific performance.
Examples of court cases as dealt with in our courts must Evaluation may take the following
be explained to students to enable them to relate to the forms:
various legal concepts.
Multiple choice questions
True/false questions
Short case studies based on court
Useful court cases: cases/newspaper articles
Direct questions
Practical tasks
Internet search
MODULE 3: CONTRACT OF SALE: WEIGHTED VALUE: 20
3.1 Contract of purchase and sale 3.3.1 Define the term ‘contract of
purchase and sale’.
• Intention/agreement
3.2.3 Describe consensus with regard to
• Delivery contracts of sale.
3.4 Duties/obligations of the seller 3.4. Discuss the basic duties of the
seller and explain the legal
• Duty to take care of the thing sold until delivery
consequences of failing to perform these
takes place
duties.
• Duty to deliver the thing sold
• Acceptance of delivery
3.6 Warranties
3.6.1 Explain the term ‘warranty’ and
indicate how it differs from a ‘guarantee’.
• Express warranties
• Breach of implied warranty against eviction 3.6.8 Explain the meaning of the implied
warranty against eviction and mention
three instances where the seller will not
be liable for the eviction of the buyer.
3.7 Rights of the seller where the 3.7 Discuss the remedies at the
buyer is in default disposal of the seller where the buyer is
at default either by non-payment or non-
• Non-payment of the price acceptance of delivery.
(mora debitoris)
• Non-acceptance of delivery
(mora creditoris)
3.8 Special sales:
POSSIBLE PRACTICAL
COMPONENT:
₋ Latent defects
₋ Eviction
₋ Passing of the risk rule
₋ Forms of delivery
Examples of court cases as dealt with in our courts must Evaluation may take the following
be explained to students to enable them to relate to the forms:
various legal concepts.
Multiple choice questions
True/false questions
Short case studies based on court
Useful court cases: cases/newspaper articles
Direct questions
Latent defects: Goldblatt versus Sweeney Practical tasks
Actio redhibitoria: SA Oil & Fat versus Hurter
Whether it is a contract of sale: Mountbatten
Investments (Pty) Ltd v Mohamed 1989
When does ownership pass (credit and cash sales):
Eriksen Motors (Welkom) Ltd v Protea Motors,
Warrenton & Another 1973
Requirements to claim for a latent defect: Sarembock
v Medical Leasing Services (Pty) Ltd and Another
1991
Implied warranty against latent defects where the
seller is the manufacturer: Holmdene Brickworks
(Pty) Ltd v Roberts Construction Co Ltd 1977
Voetstoots clause: Van der Merwe v Culhane
Latent defect: Schwarzer v John Roderick’s Motors
(Pty) Ltd
MODULE 4: THE NATIONAL CREDIT ACT: WEIGHTED VALUE: 15
4.1 The purpose of the NCA 4.1.1 List the purposes of the NCA.
Agreements
4.2.2 List and briefly describe the types of credit
transactions covered by
the Act.
agreements
4.3 List in each case the type of agreements that are
included in small, intermediate and large agreements.
₋ Small agreements
₋ Intermediate agreements
₋ Large agreements
4.7
4.7 Unlawful provision in the 4.7.1 List the unlawful provisions that may not form part of
credit agreements.
credit agreements 4.7.2 Briefly discuss how the Court will deal with unlawful
provisions in a credit agreement.
₋ The unlawful provisions
₋ The consequences
₋ Unlawful credit agreements 4.8.2 Briefly discuss how the Court will deal with unlawful
credit agreements.
₋ The consequences
4.9 Financial charges 4.9.1 Briefly describe the various financial charges.
consumer rights)
4.11 Marketing practices 4.11 Briefly discuss the requirements that advertisements
must comply with.
₋ No inducement
₋ Basic information provided in
advertisements
4.13 Mechanisms to redress 4.13.1 Briefly discuss the mechanisms put in place to
redress over-indebtedness.
over-indebtedness
₋ Voluntary debt re-arrangement 4.13.2 Practical completion of documents used for debt
₋ Involuntary debt re-arrangement counselling.
4.14 Dispute settlement 4.14 List and briefly describe the various institutions for
dispute settlement.
institutions under the NCA
Examples of court cases as dealt with in Evaluation may take the following forms:
our courts must be explained to students
to enable them to relate to the various Multiple choice questions
True/false questions
legal concepts.
Short case studies based on court
cases/newspaper articles
Direct questions
Useful court cases: Practical tasks
Internet search
MODULE 6: CONTRACT OF EMPLOYMENT: WEIGHTED VALUE: 20
6.1 Definition, nature and essentials of the 6.1 Define a contract of employment.
contract of service
6.6 Termination of the contract of service 6.6.1 List the ways in which a contract of
service can be terminated.
Expiry of term of service
Notice of termination 6.6.2 Briefly discuss summary dismissal.
Insolvency of the employer
Death of the employee
By agreement
Summary dismissal
By impossibility of performance
Redundancy of post
6.7 The Basic Conditions of 6.7 Briefly discuss the Basic Conditions of
this Act as listed.
Employment Act SPECIAL ATTENTION MUST BE
GIVEN TO THIS ACT AS IT IS VERY
To whom the Act is applicable
Ordinary hours of work RELEVANT FOR PRACTICE.
Overtime
Meal breaks and rest periods
Sunday work
Night work
Public holidays
Various kinds of leave
Termination of employment
Examples of court cases as dealt with in Evaluation may take the following forms:
our courts must be explained to students
to enable them to relate to the various Multiple choice questions
True/false questions
legal concepts.
Short case studies based on court
cases/newspaper articles
Direct questions
Useful court cases: Practical tasks