Flashcards on Business Ethics and Legal Contracts
Business Ethics and Legal Contracts: A Student's Guide
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13 cards
Card 1
Question: What is an installment sale (hire purchase) contract?
Answer: A contract where the buyer pays a deposit, takes immediate possession of goods, then pays monthly instalments, with ownership transferring only when t
Card 2
Question: When does ownership transfer to the buyer in an installment sale?
Answer: Only when the last instalment is settled.
Card 3
Question: What does the seller usually add to the amount paid off in an installment sale?
Answer: Interest.
Card 4
Question: Which South African law applies to installment sale agreements and why?
Answer: The National Credit Act (NCA) applies because an instalment sale is seen as a credit transaction; it protects the rights of both parties.
Card 5
Question: What is a rental agreement?
Answer: A contract between a landlord and tenant where the tenant rents property and pays an agreed monthly amount.
Card 6
Question: Does a tenant become the owner of rented property over time?
Answer: No. The property never becomes the tenant's, no matter how long they stay.
Card 7
Question: How often is the rental amount usually reviewed?
Answer: Usually on a yearly basis.
Card 8
Question: Which South African law protects rights in rental agreements?
Answer: The Rental Housing Act (RHA).
Card 9
Question: What is franchising?
Answer: A legal contract between a franchisor (original owner of the business concept) and a franchisee (who pays to use the concept to generate income).
Card 10
Question: What does a franchise agreement stipulate?
Answer: The relationship, rights and responsibilities of both the franchisor and the franchisee.