Transactions and representation
Answers are for parents and teachers.
1
Write at least 5 grounds for invalid transactions in a table and invent a small example for each.
Breach of form — an orally agreed sale of real estate; deceit — false information; violence/threat; a child under 14; a sham transaction.
2
Explain the difference between simple written and notarised form and why notarisation gives more security.
In notarised form a notary checks and certifies the persons and voluntariness, a copy is retained, and proof is easier in a dispute.
3
List 6 necessary elements for a model power of attorney (no real personal data).
Date, place, principal, representative, scope of authority, term, signature.
4
Why is a parent making a transaction in the child’s name an example of representation? Write 2–3 sentences.
Parents act under the law in the name and interest of the child; this is legal representation and a power of attorney is not required.
5
Why is the voluntariness requirement important? Write 3–4 sentences on the consequences of a transaction made by threat or deceit.
Free will is the basis of contract; consent obtained by threat or deceit is not valid, the transaction is void, the parties return what they received, and the guilty party compensates harm.