'Law of Contract Essay\r'

'A draw recollects to adjudge an reason of two or more disseveries, in relation to a fussy correction. Contr gos can natural covering an extremely broad range of offsprings including the deal of goods or real property, the c al genius(a) of employment or of an ego-reliant deoxidizeor race, the raisetlement of a dispute and ordain effect of intellectual property developed as part of work for hire.\r\nEssential Elements of a Contract\r\n* go authoritative and communicated treaty. Meaning that the parties atomic number 18 consensus ad idem or be of the same mind. The parties to the sustain experience correlative lowstanding of what the pick protrude covers, eg. In a nail down for the sale of a ‘moldinessang’ the buyer thinks that he entirelyow obtain a elevator car and the seller believes he is guideing to sell a horse, in that location is no meeting of the minds and the perplex will probably be held un usecapable.\r\n commotion an d toleration\r\nAgreement = sally + toleration\r\nRequirements of a sensible aver\r\n* allow moldiness(prenominal) be definite. It must non:\r\n* permit aspects of the obligation dependent upon the future will of parties (Kantor v Kantor) * Leave aspects of the chequerment blank or open to sequent negotiation (Bundell v Blan & adenosine monophosphate; King v Potgieter & Finest bingle v Humburg) * Contain wording which is dumb\r\n* Offer must be make with the intention of be demanded by some an sensitive(prenominal)(prenominal) someone. Excludes the next which be non twistings simply manifestly invitations to do furrow. * General lines of lowest price (Efroiken v Simon)\r\n* Statements of lowest price in response to a proper(postnominal) inquiry (Harvey v Facey)\r\n* Invitations to tender (Spencer v Harding)\r\n* Newspaper advertisements in oecumenic (Shepherd v Farrel domain Agency)\r\n* Advertisements by transport companies of their charges for con veying goods (Frazer v hot dog Johnson)\r\n* Displays in shop windows (Crawly v Rex)\r\n* Displays on self service counters (Pharmaceutical Society of Great\r\nBritain v Boots exchange Chemists Ltd) * Restaurant menus.\r\nReward Cases\r\nAdverts constitutes offer (Carlill v Carbolic potful Co\r\n unrivaled reward is just now offered initial psyche doing what is required is assuage to that reward. (Lee v American Swiss Watch Co.) No reward whitethorn be claimed by anyone who fulfilled the requirement not liveing of that reward (Bloom v American Swiss Co.) What is required must be done voluntarily.\r\n* Offer must not wealthy somebody been revoked. Offer whitethorn consent been revoked or lapse in one of the following ways:\r\n* Offeree is notified that it has been revoked.\r\n* Either the offeror or offeree dies.\r\n* Lapse of a reasonable close of time.\r\n* Supervening impossibility or illegality\r\n* Rejection as where the offoree makes a counter offer which contra dicts the certain offer by proposing specific alterations to the monetary value of that offer.\r\n* Offer must be one on which an optimal time limit has not expired.\r\n* eminence: keeping an offer open until the offeree is in a position to accept is permissible, since the flow, although un humpn, is not indefinite (Hanekan v Mouton) * In the crusade of an choice which is offered gratuitously, silence is not sufferance (Beinart v Zeffert) * The right of borrowing of an option, provided that it is to a blame a cash sale, can be ceded. (Hersh v Nel) * Written bankers sufferance of an verbal option is solo validated upon pass along seeless of the blank amidst the parties. (Smeiman v Volkersz) * A provisional option allows both(prenominal) ships order to withdraw before flip the due date, whilist an option for a limited time at the descetion of the offeror similarly allows that offeror to withdraw, as state at his discretion. (Gerson v United Tobacco Co.s)\r\nTerm ination of the Offer\r\n* By acceptance- an offer which has been accepted constitutes a campaign. That offer is no longer available for acceptance. * By rejection- an offer is rejected if: 1) The offeree notifies the offeror that he does not gaze to accept the offer. 2) The offeree attempts to accept the offer scarce accede to trusted designates. 3) The offeree makes a counter offer (Hyde v Wrench) * By revocation before acceptance- an offer whitethorn be revoked (withdrawn) any time before acceptance, entirely will solo if be strong when the offeree learns virtually it.\r\n* If the offer lapses-the offeror whitethorn stipulate that the offer is only open for a limited period of time. Once it has lapsed any acceptance is invalid. correct if no time limit is mentioned, the offer will not remain open indefinately. It must be accepted within a reasonable period of time. * dying- if the offeror dies by and by having make an offer and the offeree is notified of the de ath any acceptance will be invalid. * ill of a condition attached to the offer. An offer whitethorn be make subject to conditions. Such a condition may be verbalise express mailly by the offeror or implied by the motor inns from the circumstances. If the condition is not satisfied, the offer is not capable of organism accepted.\r\nRequirement of a valid acceptance\r\n* Acceptance must be definite and unconditional. (Watermeyer v Murray & Jones v Reynolds) acceptance must be compulsive and stated intention to accept is not adequate. (Boerne v Harris)\r\n* Acceptance must be communicated.\r\n* Mere stated intention to accept is insufficient. (Dietirchsen v Dietrichsen) * Acceptance may be ither expressly stated or manifested by exonerate. (Reid Bros v Fisher Bearings Co) * Silence can not be acceptance. (East Asiatic Co.v Mid discharge Manufacturing Co.) except where there is a occupation expressly to repudiate as with brokers notes. (Benoni Produce & Coal Co. v Grend elfinger) * An offeror is free to dispense with the normal modes of communication to signalize alternative systems of acceptance eg by dispatch of goods (Rex v Net &Mackenzie v Farmer’s Co-op Ltd) * Where specific form of communication is demanded by the offerror acceptance by any an an early(a)(prenominal)(prenominal) method is demoralize. (Eliason v Henshaw) * Whilist an offeror may prescribe the trend of acceptance, he may not prescribe the flair of refusal.eg by taking acceptance for grantedif the offeree has not acted in a certain way by a certain time. (Felthouse v Bindley)\r\nAcceptance by deport or telegram or telephone or telex\r\nIn acceptance by post, the elementary practice is that the manner of offer implies the manner of acceptance, whence: * Where written acceptance follows a\r\nwritten offer, acceptance is valid at the timeof posting (Cape Explosive whole shebang Ltd v Lever Br an some early(a)(prenominal)s Ltd) * Where written acceptance foll ows an oral offer or option (Smeiman v Volkers) acceptance is only valid upon receipt regardless of the distance between the parties. just now * Where offeror has demanded some other form of acceptance, written acceptance is void (Eliason v Henshaw). Note: * Acceptance to a wrong deal out due to the offeror’s stain, is valid unless the offeree knew or suspected without checking, but where the fall away is the offoree’s acceptance is void. * Acceptance to the correct visit, where the offeror has left that address without notifying the offeree is valid. (Naude v Malcom)\r\n* Correctly addressed and posted acceptance which does not arrive is valid. (Household Fire Insurance Co. v Grant) * An address incorrectly spelt by the offeree will only postpone acceptance to the time of receipt if the error was so fundagenial as to begin delay. (Levben Products Ltd v Alexander Films Ltd) * Acceptance must be do by somebody for whom the offer was intended. overcompensate of a cceptance can not be ceded by offeree to a ternion society. (Blew v Snoxell & wench v Summerville) * Acceptance must not be based on some justifiably computer errorn. A extorting political troupe may only evacuate a obtain based on his mistake if: * Justus error was turn in and he was therefore innoxious plus * Mistake was maternal and essential or in-chief(postnominal).\r\nTicket Cases\r\nUngestural document much(prenominal) as tag ends or receipts, which determine terms waiving liability on the part of narrowing society A which are unknown to the other party B. Thus B can only litigate A if B is blameless and this will only be the case if all of the following practise * at that place was no public notice displaying the terms.\r\n* The terms were not pointed out.\r\nc) The ticket was not of the type.\r\n* Contractual Capacity, meaning that the parties are legally capable of nonplusing. Only souls can get under ones skin, a person having the competency to acquire rights and duties. just not only natural persons can do so. Our practice of lawfulness recognizes the population of artificial persons who can likewise acquire rights and duties. The to the highest degree meaning(a) of these are companies incorporated in terms of the companies act. The popular dominate is that every person is able to slim down freely, within the limits of the law. But there are certain persons of limited veerual capacity whose power to bring in into grooming agreements is limited. Minors: a pocket-sized is a unmarried person under the hop on of 18. During the term of his electric razority he is under the handcuffs and lawful authority of a shielder whose duty it is to bear the electric razor until he can maintain himself, administer his property and assist him in contracting.\r\n* unsupported contracts\r\nA mild may not, as a general rule sue or be sued or contract without the assistance of his shielder should he attempt to do so the contract is void. The Roman Dutch authorities speak of such(prenominal) purpoted contracts as being void in one grade (that is as far as the minor is bedevil-to doe with) and valid in another (that is as far as the other is concerned. A minor may, except, in certain cases acquire a perfectly valid province without his guardian’s assistance. These liabilitys are only exceptionally contractual, even though they often arise in the course of attempts to contract.\r\n* Enrichment\r\nWherever a minor is unjustly enriched in terms of a purpoted contract he is determine to the extent that he is enriched. He is intimidate to restore to the other party to the purpoted contract so much of what he has received as clay in his possession or to pay a summation of money to the value of the advantold age received. But the minor is not bound by the contract, the contract remains void. His obligation arises simply because he has been enriched at someone else’s expense. (T anne v Foggit)\r\n* Fraudulent magic of Majority\r\nWhere a minor fraudulently misrepresents his age or pretends that he has been emancipated and by so doing deceives another person who is induced to contract with the minor, believe him to be of full age or emancipated, the minor incurs an obligation. But once again the obligation is not contractual. The minor is not bound by the contract, which is void. But the fraud being a delict, he is bound delictually to make good to the other party any button he suffered as a end of the fraud. It is essential that the other person be misled, other than there can be no loss as a allow of the fraud. It follows that a minor must be of such an age that it is viable for an innocent person to be misled.\r\n* Tacit license\r\nWhere a minor is tacitly emancipated he can incur a binding contractual obligation within the field of his granting immunity. Tacit emancipation occurs where a minor is allowed by his guardian to carry on business, or a ny other occupation, on his own behalf. In such circumstances the minor may himself validly contract in regards to that business. He may not, however, contract outside that business without his guardian’s agree.\r\n* Ratification\r\nWhere a minor proposes to contract without his guardian’s consent the contract may be later ratified by every guardian, when the effect is precisely the same as if the guardian had consented at the time of the contract or the minor himself on attaining legal age. Such verification may be express or implied. It is implied eg where a person after attaining his majority, continues to use an article, which he purpoted to buy during his minority as his own, or indicates otherwise by his actions an intention to be bound. (Stuttaford & Co v Oberholzer) Once the ratification has taken place the contract is rendered valid and effective from the time of the purpoted agreement. The authority which was lacking is supplied by the subsequent rat ification.\r\nAssisted contracts\r\nA minor is bound both by contracts on his behalf by his guardian or by contracts do by himself with the assistance of the guardian.\r\n* mentally ill persons\r\nA purpoted contract made by a mentally ill person is void if at the time of agreement he could not understand and appreciate the transaction into which he purpoted to repose or if his consent was motivated or invited by an insane decision cause by mental disease. All persons are presumed to be sane, unless they stomach been declare mentally disordered by an expert in the medical field. The contract is presumed void unless it can be shown that it was showed into at a time when the person concerned was in full possession of his faculties. (Prisloo’s Curators v Crafford & Prinsloo) or that his state of mind was such that he was able to understand the temperament of the contract into which he precedeed and to appreciate properly the duties and responsibilities which were cr eated by that contract.\r\n* drunk Persons\r\nWhere a person enters into a purpoted contract term so drunk that he does not know he is entering into a contract or he has no idea of the terms of the contract, the contract is void. The fact of drunken ness will not prevent the person concerned from incurring an obligation on the ground of enrichment.\r\n* Prodigals\r\nA prodigal (that is a person declared by the tourist butterfly to be incapable of managing his affairs as a go away of a propensity to squander his assets) cannot contract with regard to his property. If he purports to do so the contract is void. Ut outside the field of his property he is entitled to contract freely. He may marry. The court in declaring a person to be prodigal appoints a curator bonis whose duties are to administer the affairs of the prodigal, subject to the overriding approval of the courts.\r\n* Insolvent Persons\r\nThe sequestration of the res publica of insolvent divests him of his estate and v ests it, after appointment in a legal guardian. Property which he subsequently acquires before rehabilitation also vests in the trustee with certain exceptions. Certain restrictions are place on his freedom to contract, but he is in all other obeisances fully capable of contracting The restrictions are:\r\n-an insolvent may not contract in such a way as to purport to dispose of any property of his insolvent estate. -he may not without the written consent of his trustee enter into any contract whereby his estate is likely to be adversely affected. -he may not without the written consent of his trustee have any interest in or be employed in the business of a trader who is a general dealer. Should the insolvent, however purpot to contract in happy chance of these provisions of the act the contract is not void. It remains valid until it is set digression by the trustee.\r\n* Persons who have been convicted of Crime\r\nIn certain cases, which do not require background out in detail, ad which vary settlement on the crime committed and the sentence, imposed convicted persons are subject to various disqualification eg if convicted of theft, fraud, forgery or lying under oath and sentenced to imprisonment, they are disqualified from being appointed come with directed.\r\n* Alien Enemies\r\nAn alien enemy (namely a person residing or carrying on business in enemy territory) may not sue on our courts and all commercial relations with him is prohibited.\r\n* Serious Intent, meaning the parties intend their agreement to be binding and legally enforceable. When parties enter into an agreement ‘subject to contract’ they are expressly stating that they will not be bound unless and until a formal contract is drawn up.\r\n* Necessary Formalities. In some cases , certain formalities ( compose) must be observed. * Contracts which must be in the form of a deed. Certain transactions involving land require a deed that is conveyances, legal mortgages and leases f or more than 3 years. A promise of a gift is not binding unless in this form. * Contracts which must be in writing a contract for the sale or other disposition of land can only be made in writing and only by incorporating all the terms which the parties have expressly agreed. In one document or where the contracts are change in each. The document must be signed by or on behalf of each party to the contract.\r\nBills of exchange, cheques and promissory notes must be in writing. alike the transfer of shares in a limited company must be in writing. Employment contracts should be in writing with terms and conditions of employment. * Possibility of achievement that is functioning of the contract must be possible. * impartiality that is the agreement must be lawful. The purpose of the agreement must not be illegal or contrary to public policy where a contract involves some wrong doing, It will be illegal. If however, the conduct is incomplete immoral or blameworthy but simply undesir able the contract will be void. A court may object to an agreement either because of a rule of commonalty law or because it is contrary to statute.\r\nContracts illegal at common law\r\n* Contracts to commit crimes or civil wrongs eg a contract to assassinate someone or to pilfer Zimra\r\n* Contracts involving sexual immorality\r\n* Contracts tending to promote putridness eg contract to bribe an official.\r\n* Contracts trading with an enemy of the state\r\n* Contracts directed against the welfare of a friendly outside state.\r\n* Contract prejudicial to the administration of justice eg contract not to prosecute a person for an discourtesy concerning the public.\r\n* Genuineness of Consent\r\nThe agreement must have been entered into freely and involves a meeting of the minds. The agreement must not be invalidated by a number of factors, mistake, misrepresentation, duress and excessive influence.\r\n* Mistake\r\nThe general rule is that mistake does not affect the lustiness o f a contract. The guiding principle is the caveat emptor which means ‘let the buyer beware.’ So if a person agrees to pay $1000 for a car which in reality is only worth $500, the contract is valid and he must stand the loss. It should be noted that a mistake at law will not invalidate a contract, since everyone is presumed to know the law. There are , however some kinds of mistake which so undermine the agreement that the contract is void. If this is the case, no rights of ownership can pass and any goods which have changed hands can be be cured _or_ healeded. A mistake will invalidate the contract in the following situations.\r\n* Mistakes as to the subject matter of the contract. The parties may be mistaken as to the identity of the subject matter. If a seller makes an offer in respect of one thing and the buyer accepts, thinking of something else, the parties are intelligibly talking at cross purposes and there is no contract. * †mistake as to the identity of one of the parties. This may invalidate the contract where the identity of the party to the contract is material to the contract, a mistake will firmness of purpose in the contract being void. Where the identity of the party is not material, the contract will be valid until the mistaken party avoids the contract for misrepresentation.\r\n* Mistaken sign language of a written document. As a general rule, a person who signs a document is assumed to have read, understood and agreed to its contents. Exceptionally, a person may not be able to maintain ‘nonest factum’- ‘it is not my deed.’ 3 factors must be present if the contract is to be avoided, the signature must have been induced by fraud, the document signed must be fundamentally different from that thought to be signed and the signer must not have acted negligently.\r\nRescission of terms\r\nThe court may be alert to set aside an agreement provided the parties accept the conditions imposed by the cour t for a fairer result to the problem\r\nRectification\r\nIf a mistake is made in reducing an oral agreement into writing, the court may rectify the document so that it expresses the neat intention of the parties.\r\n special runance\r\nA court may refuse to grant an order for specific feat against a party who made a mistake, if it would be unfair to enforce the contract against him.\r\n* disproof\r\nThe formation of a contract is often preceded by a series of negotiations between the parties. Some of the statements made may turn out to be trumped-up(prenominal). The nature of the statement will determine whether a fix is available and if it is what type of remedy. A false stamen which is not incorporated into the contract is known as misrepresentation. A misrepresentation is a false statement made by one party to induce the other to enter into a contract. It must be shown that the statement has induced the person to whom it was made to enter into a contract.\r\nKinds of misr epresentation and their effects\r\nThere are 3 kinds of misrepresentation; fraudulent, negligent or innocent. In each case the contract is voidable.\r\n* Fraudulent Misrepresentation\r\nIf the person do the statement knows that what he said is false, he will be liable for fraud. The hurt party may rescind the contract and also sue for damages for the deceit.\r\n* Negligent Misrepresentation\r\nThis is where the person making the false statement has reasonable grounds for believe it to be true. alter may be allocateed for a negligent misstatement.\r\n* Innocent Misrepresentation\r\nIs a false statement made by a person who had reasonable grounds to believe that it was true, not only when it was made, but also when the contract was entered into. The basic remedy is rescission of the contract.\r\nRescission\r\nIt aims to restore the parties to their pre contractual positions. currency or goods which have changed hands must be returned.\r\n* Duress and Undue Influence\r\nThe genera l rule of law is that a contract will only be valid if the parties entered into it freely and voluntarily. Where a party to a contract or his family is subjected to threats of violence, the contract may be avoided on the grounds of duress. In undue influence, the relationship between the parties may be such that one occupies a position of dominance and influence over the other. There are several relationships such as doctor and patient, solicitor and client, parent and babe where it is automatically assumed that undue influence has been at work. The contract will be set aside unless the dominant person can prove that the plaintiff had independent advice. Where there is no special relationship between the parties the complainant must prove that wedge was applied.\r\nBreach of Contract\r\nThis may occur in a number of ways. It may be an prevenient or actual falling out.\r\n* Anticipatory Breach\r\nThis is where a party states in advance that he does not intend to carry out his sid e of the contract or puts himself in a position whereby he will be unable to perform. The injured party may sue immediately for prisonbreak of contract or alternatively wait for the time for performance to arrive to see whether the other party is prepared to carry out the contract.\r\n* Actual Breach\r\nOne party may completely fail to perform his side of the bargain or he may fail to carry out one or some of his obligations. Not every breaking of contract has the effect of discharging the parties from their contractual obligations. The terms of the contract may be divided into those terms which are important (conditions) and the less important terms (warranties). A interrupt of a condition does not automatically drop the contract. The injured party has a choice: he may wish to be discharged from the contract and claim damages for the breach. A breach of guaranty only entitles the injured party to sue for damages.\r\nRemedies\r\n every(prenominal) breach of contract will give t he injured party the right to recover damages ( financial compensation) other remedies such as specific performance and injunction, may be granted at the discretion of the court as part of its equitable jurisdiction.\r\n reparation\r\nIn the business world it is quite common for the parties to agree in advance the damages that will be payable in the event of a breach of contract. These are known as liquidated damages. If there is no prior agreement as to the sum to be paid, the amount of damages is said to be unliquidated damages.\r\nLiquidated Damages\r\nThe parties establish at the outset of their relationship the financial consequences of failing to live up to their bargain. Provided the parties have made a genuine attempt to estimate the likely loss, the courts will accept the relevant figure as the damages payable knowing the likely answer of any legal action, the party at fault will simply pay up without argument.\r\nUnliquidated Damages\r\nThe aim is to put the injured party in the position he would have been if the contract had been carried out properly. Damages are designed to compensate for the loss. If no loss has been suffered, the court will only award nominal damages: a small sum to mark the fact that there had been a breach of contract. Equitable Remedies\r\nThe normal remedy for breach of contract is an award of damages at common law. There are some situations, however where damages would neither be adequate nor appropriate. Equity developed other forms of relief to ensure that justice is done. The more important of these equitable remedies are specific performance and injunction.\r\nSpecific Performance\r\nA decree of specific performance is an order of the court requiring the party in breach to carry out his contractual obligations. Failure to comply with the directions of the court, lays the defendant open to imposition of penalties for contempt of court.\r\n instruction\r\nThis is an order of the court requiring the party at fault not to break the contract. Its main use is to enforce the negative promises that can that can occassionaly be nominate in employment contracts. The employee may agree eg not to work in a similar capacity for a rival employer during the period of his contract.\r\nCancellation of the Contract\r\nThe parties to a contract may expressly agree that breach of a certain term will entitle one of them to cancel the contract. Such express terms entitling cancellation may take any form, but the more or less common are forefeiture articles, fore closure articles and the lex commissoria. A forefeiture clause in a contract of permit and hiring is a clause which entitles the landlord to cancel the lease and have the tenant ejected. If the tenant is in breach of certain specified terms one of which is usually the stipend of rent on the due date. In the absence of such a forefeiture cluse, a term administration the recompense of the rent on a particular date is not material term and the land lord ca not therefore terminate the contract just on the ground that the lesee is in arrear with the rent.\r\nA foreclosure clause in a mortgage is a clause entitling the mortgagee to call up the bond where the mortgagor is in default usually by non payment of interest on due date. A lex commissoria is a provision in a contract of sale that the seller is entitled to cancel the contract on breach of one or other of the terms of the contract usually non payment of an instalment in the case of a sale where payment is made by instalments. Such a lex commissoria may, and usually does, contain valid penal provisions entitling the seller to go on so much of the purchase price as had already been paid to him, despite his cancellationof the contract and recovery of the subject matter of the sale.\r\nTermination of Contracts\r\nPerformance\r\nA contract is terminated by the performance of the common obligations of the parties. Set off\r\nWhere 2 parties are in debt to each other and the debts are due and liquidated, both debts are automatically extinguished if they are of the sameamount. If one is larger than the other, the smaller is extinguished and the larger automatically reduced by the amount of the smaller debt. uniting\r\nIt is the concurrence of the debtor and creditor in the same person and in respect of the same obligation. It destroys the obligations in respect of which it operates. Thus if x is the tenant of y and he purchases the property from y, the lease comes to an end and for the capacities of landlord and tenant are merged in x.\r\nAgreement\r\nThe parties may by agreement put an end to contractual obligations by passing or novation. In both cases the express or implied agreement of both parties is necessary.\r\n* Waiver\r\nIs the renunciation of rights by one or both parties to a contract. It is itself a contract which requires offer and acceptance in the ordinary way. Agreement to waive may be implied, but the courts will not lightly gain the abandon ment of a right. It must appear all the way from the words or conduct of the parties.\r\nThe person who waives a right can only effectively do so if he has full knowledge of the right. If he purports to waive a right while illiterate of its extent even as a result of ignorance of the law the waiver is ineffective, despite the rule ignoratia uris haud excusat, provided the ignorance is potential and justifiable. The abandonment may be of all rights under the contract, which is in other words cancelled by mutual agreement, or of only certain of the rights eg waiver of one party only.\r\nNovation\r\nIt occurs where the parties agree to a new contract which replaces the only one completely. The original contract is therefore terminated a new contract comes into being. The new contract, may indeed bring third parties to the original contract into the new one as parties (eg assignment and delegation) Cession on the other hand is really something different. There is not a rule to the new contract and therefore no novation. The original contract remains in existence but the right to receive performance is ceded by the cedent to the cessionary.\r\n via media is an agreement between persons for the settlement of a matter in dispute, each party abating some of its antecedent demands. If parties to a contract dispute each other’s rights in terms of the contract and subsequently they via media their rights are regulated by the compromise and not by the original contract which move away. In such a case, as the parties enter into a new contract which replaces the old one, it is suck up that compromise is a form of novation and the ordinary rules apply eg a compromise requires strict proof, the presumption being against it.\r\nInsolvency\r\nThe contractual rights and duties of an insolvent are affected in various ways by the sequestration of his estate. The majority of the rights and duties of the insolvent vest automatically in the master of the supreme court un til the appointment of a trustee when they vest in the trustee. It is the duty of the trustee to recover all debts due to the estate, to liquidate the estate and to destine the proceeds among the creditors who have proved claims against the estate. Insolvency is terminated by rehabilitation by court order. Rehabilitation discharges all debts of the insolvent, which were due, or the cause of which had arisen before sequestration.\r\nDeath\r\nDeath of a party does not terminate the contract. A form of compulsory assignment takes place and the rights and duties of the deceased, other than in terms of contracts involving personal skill which are terminated, pass to the executor.\r\n'