Yonga-Futhi Business Law Assessment Answer

Words: 1000

 

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Themba, one of Yoga-Futhi’s farmworkers, wants to borrow E2000,00 from his employer. Hlangi offers an antique pocket watch that he inherited from his grandfather as security. Yoga-Futhi accepts the watch, and Themba signs a document which he agrees that Yoga-Futhi may keep the watch if Themba does not repay the full amount within six months.

a) Advice Yoga-Futhi about the nature of a pledge and the way in which it must be constituted (5 marks)

b) Discuss the validity of the agreement that Yoga-Futhi may keep the watch (5 marks).

 

 

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