Question 1 (20 Marks) Read The Following Excerpt And Answer The Questions That Follow: Zama Arranges To Buy

Question 1 (20 marks) Read the following excerpt and answer the questions that follow: Zama arranges to buy a buffalo from a local farmer, Rob. On 1 May 2023, they agreed upon the identity of the buffalo, but they had not yet settled on the price. On 5 May 2023, they agreed to a purchase price of R300,000.00, which Zama paid to Rob on the same day. There were no suspensive conditions applicable to their contract. On 10 May 2023, Rob delivers the buffalo to Zama’s farm. Three days later, the buffalo dies. The local veterinarian confirms that the buffalo died from a poor capture method used by Rob, which was Rob’s fault. Required: 1.1. Explain perfecta and the passing

Expert Answer

This solution was written by a subject matter expert. It’s designed to help students like you learn core concepts.

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Explanation:

In contract law, the concept of “perfecta” refers to the moment when a contract is completed and fully formed. It signifies that all essential elements of the contract, such as offer, acceptance, and consideration, have been established, and the contract is legally binding between the parties involved.

In the given scenario:

On 1 May 2023, Zama and Rob agreed upon the identity of the buffalo. This initial agreement could be seen as the beginning of their negotiations and discussions regarding the sale of the buffalo. However, it did not constitute a complete and binding contract because they had not settled on the price at this point. Thus, the contract was not perfecta on this date.

On 5 May 2023, Zama and Rob agreed to a purchase price of R300,000.00, and Zama paid this amount to Rob on the same day. This act of agreeing on the price and making the payment completed the essential elements of the contract. At this point, the contract became perfecta as all the necessary components were in place, and it was legally binding.

Now, let’s discuss “the passing” in contract law. “The passing” usually refers to the transfer of ownership or title from the seller to the buyer.

Explanation:

In a contract for the sale of goods, this concept is crucial because it determines when the risk of loss or damage to the goods passes from the seller to the buyer. Typically, the passing occurs when the parties intend it to happen, which can be specified in the contract or implied based on the terms and circumstances of the sale.

In the given scenario:

On 10 May 2023, Rob delivers the buffalo to Zama’s farm. This is a critical moment because it signifies the passing of the buffalo from Rob (the seller) to Zama (the buyer). At this point, ownership and risk of loss or damage to the buffalo likely passed from Rob to Zama, assuming there were no specific terms in their contract indicating otherwise.

However, a significant issue arises in this scenario: the buffalo dies three days after delivery, and it is confirmed by the local veterinarian that the buffalo’s death resulted from a poor capture method used by Rob, which was Rob’s fault.

The contract between Zama and Rob became perfecta on 5 May 2023 when they agreed on the purchase price, and Zama paid Rob.

The passing of the buffalo likely occurred on 10 May 2023 when Rob delivered it to Zama’s farm.

The buffalo’s subsequent death due to Rob’s negligence may give rise to legal issues related to breach of contract or warranty, and Zama may seek legal remedies for the loss of the buffalo. The specific legal consequences will depend on the terms of their contract and applicable contract law principles.