Exam (elaborations)
PVL3702 - Law Of Contract 17 October 2022 exam memo
- Course
- Institution
PVL3702 - Law Of Contract 17 October 2022 exam memo 200% pass guaranteed.
[Show more]
3 reviews
By: madeleinjacobs • 2 year ago
Explain reasons for answer
By: madeleine61 • 2 year ago
By: cetapera • 3 year ago
Seller
Follow
STUDYBUDDY10111
Reviews received
Content preview
Law of ContractPVL3702
Multiple choice and long questions.
11 October 2021 exam prep
Studybuddy10111
LAW NOTES 100% pass guaranteed
,Compiled by studybuddy10111
Any error omitted please revert to your study guide
For more law study packs contact mabela2by2@gamil.com
Question 1
Z walks into a shop, and puts R10 on the counter and points to a packet of
sweets. X (the owner of the shop) takes the money and hands over the sweets
to Z.
Which statement is
CORRECT?
1 There is an oral offer, and acceptance by conduct.
2 There is an express offer, and an oral acceptance.
3 There is both an offer, and acceptance by conduct.
4 There is an offer by conduct, and an express oral acceptance.
5 There is a firm oral offer, and an unqualified acceptance. (1)
Answer
3.
Discussion
Option 3 is correct. All the other options are incorrect because there is
neither an oral offer, nor an oral acceptance. No words were exchanged
between the parties. The placing of the R10 on the counter and pointing to the
sweets constitutes an offer by conduct. Z taking the money amounts to an
acceptance by conduct. See Hutchison and Pretorius (eds) The law of Contract
in South Africa Oxford University Press Southern Africa 2012 46.
Question 2
Carol, an owner of an exclusive bicycle shop advertised a special limited edition
bicycle for sale, and invited the public to make offers for the bicycle. Jane and
Portia were among many other people who submitted written offers for the
bicycle. Jane’s offer was for R150 000, and Portia’s offer was for R160 000.
Although Carol intended to accept Portia’s offer, she erroneously accepted
Jane’s offer. Carol’s mistake is
(a) not material.
(b) an error in persona.
(c) an error in motive.
(d) material.
1 (a).
2 (b).
3 (c).
4 (b) and (d).
5 (a), (b) and (c). (1)
Answer
4.
Discussion
Options (b) and (d) are correct. Option (b) is correct because there is a
mistake relating to the identity of the parties with whom Carol intended to
contract with (an error in persona) (Hutchison and Pretorius Contract 88).
Carol’s mistake was material because she inadvertently accepted the offer of
one party (Jane), whereas she intended to accept the offer of a completely
1|Page
, Compiled by studybuddy10111
Any error omitted please revert to your study guide
For more law study packs contact mabela2by2@gamil.com
different party (Portia). The facts in this problem are similar to the facts in
National and Overseas Distributors Corporation (Pty) Ltd v Potato Board 1958
(2) SA 473 (A), where the Appellate Division found that the mistake was
material. Therefore option (b) is correct and option (a) is incorrect. Option (c) is
incorrect as the error did not relate to Carol's reason for concluding the
contract
(Hutchison and Pretorius Contract 87).
Question 3
Assume the same facts as in question (2) and assume that Carol’s error was
material. Which statement(s) is/are CORRECT?
(a) Carol’s error was a iustus error.
(b) Carol’s error was not a iustus error.
(c) Carol misrepresented her intention to Jane by accepting Jane’s offer.
(d) Carol by accepting Jane’s offer, led Jane to reasonably believe that they
have reached
consensus.
1 (a).
2 (b).
3 (c) and (d).
4 (b) and (c).
5 (b), (c) and (d). (1)
Answer
5.
Discussion
The requirements of both iustus error and the doctrine of quasi mutual assent
are relevant when answering this question.
A mistake is a iustus error, if it is both material and reasonable (Hutchison and
Pretorius
Contract 99). It has already been established from the previous answer that the
error was material. The issue now is whether the mistake was also reasonable.
In National and Overseas Distributors Corporation (Pty) Ltd v Potato Board 1958
(2) SA 473 (A), the court ruled under similar circumstances that the mistake by
the contract denier was not reasonable (Hutchison and Pretorius Contract 98-
99). The mistake furthermore does not fall into one of the recognised categories
of reasonable mistakes (Hutchison and Pretorius Contract 100-103). Therefore
option (b) is correct.
Option (c) and (d) relate to requirements of the doctrine of quasi-mutual assent
(Hutchison and Pretorius Contract 95-97). This doctrine requires that the one
party reasonably believes that the other party had agreed to enter into the
contract and that this belief must have been caused by the latter party. Carol
made a misrepresentation to Jane that she wanted to conclude a contract with
Jane by accepting Jane’s offer and this led Jane to reasonably believe that
consensus had been reached between the parties. Therefore both options (c)
2|Page
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 STUDYBUDDY10111. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.84. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now