WorksheetsFinancial and Contractual Issues Quiz
Total questions: 20
Worksheet time: 10mins
What is a contract?
A verbal agreement between a group of people.
A legal agreement between two or more parties where one party promises to do something in return for a valuable benefit of some sort.
A written document that only applies to the sale of immovable property.
An agreement that is difficult to challenge.
What is a "tacit" agreement?
A contract that is written and signed by both parties.
An agreement that is implied by the actions of both parties.
A verbal agreement that is difficult to challenge in court.
A contract that requires a witness.
According to the document, which of the following is an example of a written contract?
Agreeing to pay a taxi driver a fee for transport.
Offering to purchase a CD on behalf of a friend.
Getting married.
A partnership agreement.
Which of the following is NOT a requirement for a contract to be legally enforceable?
It must be in writing.
There must be an offer and acceptance of that offer.
The contract must be legal.
The parties must have legal capacity.
What is the legal definition of a "minor" in this context?
A person under 18 years old.
A person who is mentally challenged.
A person who is insolvent.
A person who is not competent to enter into a contract.
"Consideration" is an essential element of a contract. What is it?
A form of arbitration.
An exchange of something of value, such as money, property, or a promise to do something.
A legal clause that protects both parties.
The legal capacity of a person.
What is a "long-term" insurance contract, as defined in the document?
Medical aid.
Household insurance.
Life insurance.
Vehicle insurance.
What is a "premium" in an insurance contract?
A monthly amount paid by the consumer.
The compensation the consumer receives in the event of a loss.
The legal agreement itself.
A fee for a specific service.
Which Acts govern credit contracts in South Africa?
The Basic Conditions of Employment Act.
The National Credit Act and the Consumer Protection Act.
The Rental Housing Act and the National Credit Act.
The Consumer Protection Act and the Basic Conditions of Employment Act.
In an instalment sale contract, when does the ownership of the item pass to the consumer?
Immediately after signing the contract.
When the last instalment has been paid.
When the store reclaims the product.
When the consumer takes possession of the product.
What is the definition of a "secured loan"?
A loan where the consumer signs over the rights to an asset to the financial institution.
A loan that is guaranteed to be repaid in full.
A loan that is only offered to businesses.
A loan that is paid off in one lump sum.
What does the Consumer Protection Act allow a consumer who has rented property in their personal capacity to do?
Cancel the lease at any time without a penalty.
Give 20 working days' notice to terminate a fixed-term agreement.
Sub-let the property to a third party.
Not pay the required deposit.
The document states that a deposit for a rental property must be kept in an interest-bearing account. Who can use this money?
The landlord can use it to repair damage or recover outstanding rent.
The tenant can use it to pay for other expenses.
The government can use it for municipal services.
The interest earned must be kept by the bank.
What is a "lease" contract?
An agreement where the ownership of a property reverts to the consumer at the end of the contract.
A contract that allows a consumer to purchase a car or photocopier at the end of the term.
A contract in which a consumer is permitted temporary use of an item on payment of a fixed monthly amount, but ownership does not revert to the consumer at the end of the contract unless an option is taken.
A contract that is governed by the Rental Housing Act.
What is a "cooling-off period"?
The time the law gives a consumer to cancel a contract without reason or financial implications.
The period after a contract has been signed when the consumer may not use the product.
The time it takes for a credit provider to refund a consumer's money.
The period a consumer has to return goods after a purchase.
What is "direct marketing"?
When a business only sells its goods online.
When a business approaches a consumer in person, by mail, or by electronic communication to sell goods or services or to request a donation.
When a consumer buys something from a store.
When a business sells directly to another business.
What is an "exemption clause" in a contract?
A clause that protects the consumer from unfair terms.
A clause that allows a consumer to cancel a contract.
A clause that exonerates one party from any liability if they fail to honour the agreement.
A clause that is always void and legally unenforceable.
What is the definition of a "void" contract?
A valid contract that can be enforced in a court of law.
A contract that is not valid or not legally binding.
A contract that has an exemption clause.
A contract that is in writing and signed by both parties.
What is an "unconscionable business practice"?
When a supplier fairly influences a consumer to do business.
When a supplier unfairly tries to influence or harass a consumer to do business with it.
When a supplier offers goods and services at fair prices.
When a supplier ensures all terms are clear to the consumer before a contract is signed.
What is a "stokvel" as defined by the National Credit Act?
An illegal pyramid scheme.
A formal or informal rotating financial scheme with entertainment and social or economic functions.
A business that offers unusually high returns on investments.
A savings club with no rules or regulations.
