Class notes
Private Law 372 - Law of Contract Unit 4
- Course
- Institution
Contracts notes. They contain all prescribed content: case summaries, textbook summaries, class notes, podcasts & lecture slides.
[Show more]
Seller
Follow
stellenboschlaw
Reviews received
Content preview
The Law of Contract: Semester 1 2022Private Law 372
Table of Contents
1 INTRODUCTION.................................................................................................................................................................... 4
1.1 KEY CONCEPTS: THE CONTRACT AS AN AGREEMENT THAT CREATES OBLIGATIONS.......................................................................................4
1.1.1 The definition & features of the contract as an agreement that creates obligations: types of agreements......................4
1.1.2 The definition & features of obligations............................................................................................................................11
1.1.3 Sources of obligations & the position of the law of contract in the SA legal system........................................................13
1.2 THE DEVELOPMENT & SOURCES OF THE SA LAW OF CONTRACT...........................................................................................................15
1.2.1 The development of SA common law of contract..............................................................................................................15
1.2.2 Statutory law & the impact of the Constitution.................................................................................................................16
1.2.3 Indigenous, customary law................................................................................................................................................19
1.3 THE UNDERLYING (CONSTITUTIONAL) VALUES OF THE LAW OF CONTRACT...............................................................................................22
1.3.1 Introduction: distinguish....................................................................................................................................................22
1.3.2 Goals/ functions/ underlying values of the law of contract..............................................................................................22
1.4 THE RELATIONSHIP BETWEEN COMMON-LAW RULES OF CONTRACT LAW & CONSUMER LEGISLATION (CPA)..................................................26
1.4.1 Intro to CPA; its purpose & interpretation.........................................................................................................................26
1.4.2 Application of the CPA.......................................................................................................................................................27
1.4.3 Consumer rights: Chapter 2 of the CPA ‘Fundamental Consumer Rights’.........................................................................29
1.4.4 Enforcement of CPA...........................................................................................................................................................30
2 CONSENSUS AS A REQUIREMENT FOR CONTRACTUAL LIABILITY.......................................................................................... 32
2.1 OFFER & ACCEPTANCE AS AN INDICATION OF CONSENSUS...................................................................................................................32
2.1.1 Introduction.......................................................................................................................................................................32
2.1.2 The requirements for a valid offer.....................................................................................................................................32
2.1.3 The consequences of an offer............................................................................................................................................36
2.1.4 The termination of an offer................................................................................................................................................37
2.1.5 The requirements for acceptance......................................................................................................................................37
2.1.6 The consequences of acceptance.......................................................................................................................................41
2.2 PACTA DE CONTRAHENDO: OPTIONS & RIGHTS OF PREFERENCE............................................................................................................43
2.2.1 Option................................................................................................................................................................................43
2.2.2 Preference contract/ right of preference...........................................................................................................................50
2.3 PRE-CONTRACTUAL RELATIONSHIPS................................................................................................................................................ 59
3 CONTRACTUAL LIABILITY IN THE ABSENCE OF ACTUAL CONSENSUS.....................................................................................59
3.1 WHEN IS CONSENSUS ABSENT: THE INFLUENCE OF VARIOUS TYPES OF MISTAKE, ON CONSENSUS................................................................59
3.1.1 The meaning of mistake....................................................................................................................................................59
3.1.2 Effect of a mistake: depends on type of mistake...............................................................................................................60
3.2 WHEN IS THERE CONTRACTUAL LIABILITY EVEN THOUGH CONSENSUS IS ABSENT?.....................................................................................71
1
, 3.2.1 The subjective and objective theories of contractual liability...........................................................................................71
3.2.2 Doctrines that impose contractual liability in the absence of consensus..........................................................................77
3.2.3 Discussion of tutorial 1.......................................................................................................................................................98
4 RESCISSION OF AN EXISTING CONTRACT DUE TO IMPROPERLY OBTAINED CONSENT.........................................................102
4.1 GENERAL.................................................................................................................................................................................102
4.2 MISREPRESENTATION.................................................................................................................................................................103
4.2.1 Introduction.....................................................................................................................................................................103
4.2.2 Definition & elements of misrepresentation (depend on remedy)..................................................................................104
4.2.3 Remedies arising from misrepresentation:......................................................................................................................118
4.2.4 Excluding liability for misrepresentation.........................................................................................................................135
4.3 DURESS (“METUS”)...................................................................................................................................................................138
4.4 UNDUE INFLUENCE....................................................................................................................................................................150
4.5 OTHER CASES OF IMPROPERLY OBTAINED CONSENT: CONSUMER LAW..................................................................................................157
5 CONTRACTUAL CAPACITY [NOT PRESCRIBED].................................................................................................................... 166
5.1 DEFINITIONS............................................................................................................................................................................ 166
5.2 CAPACITY OF NATURAL PERSONS..................................................................................................................................................166
5.3 CAPACITY OF JURISTIC PERSONS...................................................................................................................................................168
6 FORMAL REQUIREMENTS (WRITING)................................................................................................................................. 169
6.1 INTRODUCTION.........................................................................................................................................................................169
6.2 STATUTORY FORMALITIES........................................................................................................................................................... 172
6.3 FORMALITIES IMPOSED BY PARTIES...............................................................................................................................................181
6.3.1 Formalities imposed by parties for concluding contract.................................................................................................182
6.3.2 Formalities imposed for variation of contract.................................................................................................................183
6.3.4 How do you escape from the Shifren straitjacket?..........................................................................................................187
6.4 THE ‘PAROL EVIDENCE’ RULE.......................................................................................................................................................195
6.5 RECTIFICATION......................................................................................................................................................................... 204
6.5.1 Introduction.....................................................................................................................................................................204
6.5.2 Requirements for rectification.........................................................................................................................................205
6.5.3 Link between rectification and the parol evidence rule...................................................................................................209
6.5.4 Link between rectification & formalities..........................................................................................................................210
7 POSSIBILITY OF PERFORMANCE......................................................................................................................................... 216
7.1 GENERAL RULE.........................................................................................................................................................................216
7.2 DISTINCTIONS.......................................................................................................................................................................... 217
7.3 MEANING OF IMPOSSIBILITY........................................................................................................................................................218
7.4 CONSEQUENCES OF IMPOSSIBILITY................................................................................................................................................222
7.5 PARTIAL IMPOSSIBILITY...............................................................................................................................................................222
7.6 TEMPORARY IMPOSSIBILITY.........................................................................................................................................................223
8 CERTAINTY OF PERFORMANCE.......................................................................................................................................... 224
2
, 8.1 GENERAL RULE.........................................................................................................................................................................224
8.2 APPLICATION OF RULE & PROBLEM CASES IN TERMS OF APPLICATION..................................................................................................225
8.2.1 Agreement aimed at concluding further agreement.......................................................................................................226
8.2.2 Vague language & gaps...................................................................................................................................................231
8.2.3 Contract of indefinite duration........................................................................................................................................232
8.2.4 Contractual mechanism to obtain certainty....................................................................................................................233
8.2.5 Contractual discretion awarded to one party..................................................................................................................234
8.2.6 Consumer protection.......................................................................................................................................................238
8.3 CONSEQUENCES OF UNCERTAINTY................................................................................................................................................238
9 LEGALITY........................................................................................................................................................................... 240
9.1 INTRODUCTION.........................................................................................................................................................................240
9.2 STATUTORY ILLEGALITY...............................................................................................................................................................241
9.3 COMMON-LAW ILLEGALITY......................................................................................................................................................... 243
9.3.1 Application of common-law public policy test for illegality.............................................................................................244
9.4 SPECIFIC EXAMPLES OF ILLEGALITY................................................................................................................................................254
9.5 CONSEQUENCES OF ILLEGALITY....................................................................................................................................................277
9.5.1 Introduction.....................................................................................................................................................................277
9.5.2 Valid but unenforceable...................................................................................................................................................278
9.5.3 Void & unenforceable......................................................................................................................................................279
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller stellenboschlaw. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.85. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64438 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now