Milpark BLAW1B-6 Business Law Assignment: Contract, NCA, CPA

This business law assignment solution addresses various legal concepts, including substantial performance and breach of contract in the context of a road construction tender. It analyzes a suretyship agreement and the rights of parties involved, particularly concerning university fees. The assignment further examines negotiable instruments, specifically bills of exchange, and their validity. Additionally, it delves into the National Credit Act of 2005, focusing on credit transactions and installment agreements, and concludes with an analysis of the Consumer Protection Act of 2008, specifically concerning acceptable service quality in landscaping services. The solution provides a comprehensive overview of these legal areas with application to specific scenarios.

0Running head: BUSINESS LAW ASSIGNMENT
BUSINESS LAW ASSIGNMENT
Name of the student
Name of the university
Name of the author

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Question 1
1.1 Substantial performance also grants as an alternative rules for the perfect tender rule
under common law. When a party performs substantially or partially and this is allowed by the
court in contract is called substantial performance. The party has completed all the material
aspects for the contract but the non-material facts are not fulfilled by the party (Eisenberg and
Miller 2015). The substantial performance done to avoid the breach of contract and the party is
not liable for compensation. Further exception to the contract explains that court may satisfy
when substantial performance exists. The court may direct the contractual party to deduct some
amount which is not performed in the contract from the decided amount (Campbell 2014). There
is no limit to measure the amount of substantial performance. The performance depends on
individual case and the deduction of the amount decided by the court. In this particular situation
road agency can refuse to pay the retention fee because the RNRC did not perform according to
the conditions. The road agency also has rights to refuse the handover of road. The RNRC
engineering company substantially performs on the contract because they overdue the time for
handover. They also use low quality to build the road which does not meet the standards of
national road construction.
1.2 Breach of contract is one type of civil wrong. It occurs when a party fails to meet the
obligations discussed in the contract. Contractual breach can cause damages to the other party.
The party who cause breach to a contract is liable to pay damage to the displeased party. The
RNRC Company claims that road agency done a breach of contract by refusing to pay the
remaining amount for the contract (Zamir 2014). Here the company claims are not valid because
they did not perform according to the conditions mentioned under the contract. It is discharged

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by breach of a contract because there is a breach of condition by the RNRC. The road agency
fulfill their conditions but RNRC fail to handover the road within a due time and the material
they used is also low quality which does not meet the requirements for the national road
construction. In this situation the road agency can claim damages from the RNRC because they
fail to perform the contract with the required conditions. The agents from the road agency claim
the facilitation fees from the engineering company.
Question 2
Suretyship agreement means that an agreement where third party takes responsibility for
one of the party and he is liable for the performance done by the party. In the suretyship
agreement there are three parties; one is creditor, debtor and the surety. The parties to the
suretyship contracts have certain rights against each other. The surety to a contract is means that
when any person guarantee into the contract he is liable for the action of creditor. The debtor of
an agreement has the responsibility toward the creditor and if the debtor fails to perform his
duties then surety have to liable for him (Pretorius and Pretorius 2016). A surety is eligible to get
every benefit of debtor which he has against the creditor. When the surety is unaware of the befit
at the time of entering into the contract then also he will get the all benefits. The suretyship
contract always benefited the creditor of the contract.
After the discharge of the debts of surety he has the rights against the principle debtor.
The rights of the creditor are also obtained by the surety. Surety can sue the principle debtor for
the amount which he paid to the creditor of the agreement. Here on behalf of the party the surety
is liable for his action. In this situation Mr. Mokoena signed the agreement with the university as
a surety for his daughter university fees. In this fees agreement is discussed about the rights of

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the sureties. Here in the clause it mentioned that the rights cannot transfer to any other person.
The rights regarding the agreement cannot be transferred to other person and the benefit of the
agreement also can be enjoyed by the party who signed the agreement. Mr Mokoena signed the
agreement for his daughter so only his daughter can enjoy the benefit from that agreement.
The meaning and import of the special rights are beneficium divisionis means that the
surety is liable only for the rights which he has in an agreement. The creditor can only sued for
the portion which surety is liable to pay. Beneficium excussionis means that creditor can excuse
the benefit which claimed by the debtor (Mehmeti 2015). Beneficium cedendarum actionum it is
the rights of a surety which is assigned firstly before making the payment to the creditor of an
agreement. The above rights and duties cannot abandon by Mr Mokoena which mentioned in the
agreement.
Question 3
3.1 In this situation the negotiable instrument which can relates is bill of exchange. John
writes on the cardboard box and signed the document and gives it to Brian to pay the amount to
Thato.
3.2 The bill of exchange is valid because John writes the document by himself and then
signed the document. The written document is given to Brian who reads the document and
signed it also. Bill of exchange means that a written orders to pay the money to another person
(Burge 2015). It refers to a person to pay some amount to another person. Bill of exchange is
similar to promissory note and cheque. It does not pay any interest to the person. It is drawn by
individual or by the bank itself. In the bill of exchange there are three parties’ drawer, drawee
and payee. In this situation John borrowed R500 from Thato and Brian owes John R1000. Here

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John signed a promissory note with Thato on the day of borrowing money. Today John has to
pay the amount to Thato. Jhon write a note to Brian and signed it by saying that he has to pay the
remaining money to Thato by today. Brian read the note and signed it but when later on that day
he have to pay the amount to Thato he is denying the duty to pay the money and saying that the
document is not valid. Here the document is valid because he signed it after reading the
document.
3.3 according to the situation John is the drawer of bill of exchange, Brian is the payee
and Thato is drawee. The drawer of the bill of exchange orders the payee to make the payment to
drawee within the specific date and time (Puttevils 2015). Here Brian cannot denied the
document because he owes the money to John and he have to pay the amount which John asked
to pay to Thato.

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Question 4
4.1 The National Credit Act, Act No. 34 of 2005 regulates the laws relating to credit
transactions. Under section 8 of the Act, an exhaustive list of the credit transactions those are
covered by the Act has been enumerated. Under section 8 subsection 1 of the Act, any credit
facility, credit transaction or credit guarantee can be treated as a credit agreement for the pupose
of this Act. However, section 8 subsection 2 of the Act excludes some of the agreements from
the purview of credit agreement for the purpose of this Act. These includes any insurance policy
or the credit availed from an insurer for maintaining the premium payment, lease of a property,
which is immovable in nature and any transaction among stokvel and its members.
Under section 8 subsection 3 of the Act, a list transactions that can be treated as credit facilities
has been provided, which excludes the transactions provided in subsection 2. In case, a credit
provider makes a supply services or goods for a payment to be made from time to time. It also
includes the transactions where the consumer can make payment with respect to a part of the
payment and make the rest of the payment afterwards. Credit facility is also evident in cases
where the supplier imposes a bill upon the consumer periodically for the goods or services
provided. Credit facility also includes any interest, fee or charges that the consumer owes to the
credit provider for the defaulted or late payments made by the consumer.
Under section 8 subsection 4 of the Act, there are certain agreements those are considered to be
credit agreements irrespective of their forms. These agreements can be listed as follows:
• Credit transactions includes any pawn transactions or discount transactions,
• It includes transactions incidental to credit agreements,

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• It also includes credit transactions with respect to secured loan or mortgage loan,
• Credit transactions also includes lease agreements,
• It also includes any other credit agreement or credit facilities, which are not excluded
under this Act.
An agreement relating credit guarantee is also considered to be a credit transaction for the
purpose of this Act.
In the given situation, the transaction between the father and the son relating to the purchase of
the vintage car will be considered to be an instalment transaction for the purpose of this Act. This
is because the transaction has been effected with the payment of 5000 per month and there has
been an agreement drawn up between the father and the son to deliver the ownership and
possession of the car on being paid with the last instalment.
4.2 The National Credit Act, Act No. 34 of 2005 applies to the transaction given in the above
scenario. The transaction given in this situation can be brought under the purview of credit
transactions by virtue of the definition of instalment agreement provided under this Act. Under
this Act, the instalment agreements includes any agreement that involves the payment to be made
in a continuous form and is to be paid in part at a time. In this situation, the father agreed sell his
son a vintage car for the payment of monthly instalments. Both the father and the son being adult
and the drawing up of agreement being effected wioth respect to the same, the transaction in the
present case can be treated as an instalment agreement for the purpose of this Act.

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Question 5
5. Section 54 of the Consumer Protection Act, Act No. 68 of 2008 provides for the rights that
a consumer might have with respect to the demand of services which are of aceeptable quality.
Under subsection 1 of this section a consumer has been provided with several rights. A consumer
needs to be provided with services within the reasonable or stipulated time. In case of any delay
in the same, the consumer is required to be provided with the notice of such delay. In this
scenario, the landscapers finished the work after a delay of one week without any notice about
the same. The services rendered is supposed to be of acceptable quality, which in the present
situation, the landscapers failed to provide as they damaged her property while working and did
not made the garden as expected. The consumer needs to delivered with services, which are free
from defects, but in this case, the garden was not delivered in a condition that has been expected
in the situation. Moreover, the services rendered by the landscapers was not in accordance with
the request made by the woman. The consumer also has the right be delivered with a goods or
services in a good condition but the landscapers has returned the garden in a damaged condition,
the water feature nearly electrocuted the woman and the plants were already dead. The consumer
in this case has a right to claim damages and refund from the landscapers.

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References
Burge, M.E., 2015. Apple pay, bitcoin, and consumers: the ABCs of future public payments law.
Hastings LJ, 67, p.1493.
Campbell, D., 2014. Good faith and the ubiquity of the ‘Relational’contract. The Modern Law
Review, 77(3), pp.475-492.
Eisenberg, T. and Miller, G.P., 2015. Damages versus specific performance: lessons from
commercial contracts. Journal of Empirical Legal Studies, 12(1), pp.29-69.
Mehmeti, S., 2015. Magna Carta And The Roman Law Tradition. SEEU Review, 11(1), pp.139-
144.
Pretorius, C.J. and Pretorius, J.T., 2016. Failed Suspensive Conditions and the Law of
Suretyship: Some Basic Principles–Firstrand Bank Ltd V Meyer.
Puttevils, J., 2015. Tweaking financial instruments: bills obligatory in sixteenth-century
Antwerp. Financial History Review, 22(3), pp.337-361.
The Consumer Protection Act, Act No. 68 of 2008
The National Credit Act, Act No. 34 of 2005
Zamir, E., 2014. Contract Law and Theory: Three Views of the Cathedral. U. Chi. L. Rev., 81,
p.2077.