Mr Nzimande owns a store that supplies purified water. His business has been rather successful of lately due to the water shortages in Durban. Mr Nzimande has a brilliant idea to create customised bottles for events. He notices that his neighbour Mr Naidoo runs a graphic design and printing company. He approaches him with the business idea. Mr Naidoo is keen and proposes brilliant graphic designs for the water bottles.

Mr Nzimande wants to ensure that there is a contract in place between both parties with clear terms that reflect both of their interests.

Question 1 (15 Marks)

Mr Nzimande is 18 years of age, he understands that one of the essentialia of a contract includes that parties must have the capacity to contract in law. He further understands offer and acceptance, so there is no need to elaborate on that aspect of contract law in this question.

You are required to outline seven (7) further essentialia that is necessary to be satisfied in order for a contract to come into existence. In your answer you must outline the requisite essentialia, and thereafter demonstrate an independent application of the essentialia by providing examples for each element respectively. The examples MUST relate to the above-mentioned scenario.

Question 2 (15 Marks)

Mr Nzimande wants to ensure that he is well aware of legislation in South Africa. He has also recently expanded his business with 4 other stores in Durban. Mr Nzimande wants to provide training and awareness for his staff. He approaches you to speak about the Consumer Protection Act to his employees.

You are required to research the Consumer Protection Act. You must ensure that the following points are elaborated on:

– The purpose of the Consumer Protection Act
– Where does the Act apply. Outline any exceptions
– What protection does the Act offer to consumers. You can refer to sections within the legislation
– What a customer can do should a supplier not adhere to the act
– You MUST provide practical examples for each point above
– You MUST include credible sources of information. Kindly ensure that you reference them accordingly.

Answers to Above Questions on Nzimande Case Study

Answer 1: The seven essentialia of a contract are meeting of the minds, legal object, consideration, legal formalities, intention to create legal relations, certainty, and capacity. It is possible for Mr Nzimande and Mr Naidoo to create a valid and enforceable contract by satisfying all these essentialia.