Contract Of Sale Case Study

Imraan Steyn and Vernon Parnell entered a contract of sale (orally), where Steyn sold his white BMW to Parnell. Both agreed on a purchase price of R10 000. Parnell briefly inspected the interior and exterior of the car and started the engine, he approved of the car and decided to buy the car. Parnell paid the full purchase price of R10 000 to Steyn. Later that week, Parnell experienced major problems with car when the engine fell out, he had his mechanic inspect the car. The mechanic found that the engine was welded and held together by a clamp. To have the car fixed, costing Parnell R5 000.
Does Parnell have any legal remedies?
A contract is an agreement between two or more persons, where each person agrees to perform or do something in terms
This resulted in both parties entering into a valid contract of sale as the conditions were present. The essentialia of this contract of sale was present because both parties had the intention of selling and purchasing the BMW (with certainty concerning the car sold and lastly certainty concerning the purchase price)
The type of contract was now agreed upon. Certain rights and duties of the parties followed. The naturalia of this contract of sale was that Parnell had to pay the purchase price of R10 000 and Steyn had to deliver the BMW, providing an implied warranty against latent defect (a pledge that the goods are free of defects, those that Parnell wasn’t able to notice upon when he briefly inspected the
An aedilitian action can be instituted because the car had a latent defect, Steyn was aware of the defect and fraudulent concealed such fact. Steyn also explicitly guaranteed presence of good characteristics and false dicta et promissum to Parnell. Parnell may institute an actio empti (an action employed in behalf of a buyer to oblige a seller to perform his obligations or pay compensation, also to enforce any special agreements by him, embodied in a contract of sale) . Since there was no ‘voetstoots’ clause, Steyn isn’t protected against the liability. With actio empti Parnell can claim a cancellation of the contract because the defect is serious or he can claim damages. Another remedy is actio redhibitoria (where he can claim compensation/Pro rata reduction of the sale price) and Actio quanti Minoris (where a price reduction can be requested, being the difference between the purchase price and the value of the car with its