During the civil unrest of 2021 which saw the large-scale looting of shops, many people were unable to access essential products such as bread. This inspired Kenneth to start his own bakery. To start the business, Kenneth loaned R270 000 from his aunt (who is a successful businesswoman in her own right). Three months after starting his business, Kenneth was awarded a tender by the Department of Education to supply public schools in his community with bread as part of a feeding scheme. Kenneth will provide various schools with bread for a six-month period at a cost of R90 000. Kenneth wants to give up his personal right to receive payment from the department of education to his aunt as partial settlement for the principal debt. Q.5.1 Identify the type of contract that Kenneth would need to enter into to give effect to his plan. (2) Q.5.2 Using the correct legal terminology, name the parties to the agreement in Q.5.1 above. (4) Q.5.3 Discuss the legal nature of the agreement identified in Q.5.1 above. (7) Q.5.4 Advise Kenneth on whether the legal requirements for such an agreement have been met. (7) Q.5.5 What are the legal consequences of such an agreement? (2) Q.5.6 Are there any circumstances under which this type of agreement will be prohibited? (6) Q.5.7 Differentiate between the two forms that the agreement identified in Q.5.1 may take.

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