Janice wishes to safeguard her business at all given times. She has heard from a friend that there are certain individuals who lack contractual capacity, and there are also individuals who have limited contractual capacity. Janice approaches you for advice. Explain to Janice what the term ‘capacity to act’ refers to. And what the are categories of persons who have LIMITED contractual capacity
Janice wishes to safeguard her business at all given times. She has heard from a friend that there are certain individuals who lack contractual capacity, and there are also individuals who have limited contractual capacity. Janice approaches you for advice. Explain to Janice what the term ‘capacity to act’ refers to. And what the are categories of persons who have LIMITED contractual capacity
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Janice wishes to safeguard her business at all given times. She has heard from a friend that there are certain individuals
who lack contractual capacity, and there are also individuals who have limited contractual capacity.
Janice approaches you for advice.
Explain to Janice what the term ‘capacity to act’ refers to. And what the are categories of persons who have LIMITED contractual capacity
Transcribed Image Text:Contracts are of critical importance especially in daily commercial and business transactions. Agreements are constantly
being entered into for various purposes. A contract is binding in law and each party must deliver and perform according to
their obligations as mutually agreed upon in the contract.
Janice runs a bespoke luxury handbag boutique called La Bougee Boutique in an upmarket suburb of Durban. She buys
and sells premium handbags. Janice has created a well-established name for herself in the fashion industry in South Africa.
Janice has international clients who purchase handbags from her store.
Her supplier Roderigo resides in Cape Town. Janice has a written contract in place with Roderigo which states that Roderigo
will provide Janice with premium handbags which he imports from Italy. The contract shall span over a period of 2 years.
One of Janice's obligations is to ensure that a part payment of 50% is transferred to Roderigo prior to the delivery of the
handbags. The remainder shall be payed upon the delivery of the goods to her store. One of Roderigo's obligations is to
ensure that all bags sold to Janice are authentic and suitable for sale.
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