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LOBL3724 Private Law

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Question:

You are approached by your client, Ms Ferekane, for legal advice.She had paid R2.5m into the trust account of Green Attorneys on 1 July 2017. The amount was to be kept on their trust account on her behalf as a deposit to reserve property she intended to buy in a new development from Pro-Properties. At the time she paid the deposit, she was required to completedocumentation regarding the particular property she intended to purchase. She also instructed the attorney, by selecting the option on the documentation, to invest her deposit in terms of Section
78(2A) of the Attorneys Act 53 of 1979.

The property was fully developed and ready to be conveyed and registered in her name on 29 June 2018. Mr Green had requested her to pay the transfer costs a week prior to the 29th June 2018 at which point she inquired from him whether the amount of interest she earned from the investment of her deposit would not be enough to cover the costs. Mr Green informed her that the deposit she had paid was never invested by them and that she had to cover the conveyancing costs before they could proceed.

It is established that, had the money been invested, Ms Ferekane would have earned 6.5% interest per annum.
Because Ms Ferekane was not planning for this additional expense she had to borrow R 40 000 as a personal loan (11% interest p.a.) to cover the costs of the transfer.The property was eventually transferred and registered in her name on 6 July 2018.Mrs Ferekane now wants to know whether she has a claim against anyone and if so, against whom and for what.

1.1 Briefly write an opinion on Ms Ferekane’s legal position with reference to case law. Your opinion must be written in accordance with the stylistic guide of the Journal for Juridical Science and must be equipped with references (footnotes). Your opinion may not exceed 2 pages.
1.2 Draft the Particulars of Claim to institute the action suggested to Ms Ferekane in 1.1. You may add your own fictional information needed to draft the Particulars of Claim. You are only required to draft the Particulars of Claim and not the complete summons. Your particulars of claim must be drafted in the prescribed format and may not exceed 2 pages. 
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