EXAMPLES

• Terms of a contract

  • Mickey agrees to give Minnie, a first year BCOM student, R100 000 when she graduates from Law School (Suspensive condition)
  • Ed agrees to buy Camilla a BMW X5 if she gets a promotion at work within the next 2 years (Suspensive condition)
  • Nicki rents her 1 bedroom apartment to Megan. They agree that if Megan gets married, the lease agreement will terminate (Resolutive condition)
  • Casper agrees to give his Mercedes Benz C200 to Kwesta. They agree if Kwesta fails his Commercial Law Exam, he must return the vehicle to Casper (Resolutive condition)
• Contractual terms


  • Christina agrees to buy Britney's house for R2 million. The sale is subject to Christina obtaining a loan from Standard Bank within 30 days of signing the agreement (Suspensive condition)
  • Usher hires a car from AVIS for 60 days (Resolutive timeclause)
  • Ronnie allows Peter to rent his flat immediately for a period of 2 years (Resolutive timeclause)
  • Phil agrees to give Alex his car when he dies (Suspensive timeclause)
• Suspensive condition


  Uncertain whether an event will definitely occur
• Resolutive condition


  Gets the thing now, uncertain whether an event will occur in the future
• Suspensive timeclause


  Uncertain when an event will occur, but the event is certain to happen
• Resolutive timeclause


  After a set time period, the contract comes to an end
• Always look for key words when identifying contractual terms
• In assessments, do not write essentialia, naturalia or incidentalia. Write the specific contractual term/clause
• Be specific - if a question is worth 2 marks, get 1 mark for writing suspensive/resolutive and another mark for writing condition/timeclause
• The section on contractual terms is included in Test 2 and the Exam