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PVL3702 - Summary of Cases (2022)
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Latest summaries of all important cases dealt with in PVL3702 - Law of Contract.
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pvl3702SUMMARY
Cases (Bundle)
CasesSummary™
LAWofContract
, List of Prescribed Cases
Case Legal Question Legal Principle
Basson v Chilwan 1993 (3) - Factors to consider in “Reasonableness of
SA 742 (A) deciding whether a restraint restraints of trade is based
of trade is contrary to public
on the broad interests of the
policy? community on one hand and
Factors (x6): The restraints interests of the contracting
must go no further than is parties on the other. A
necessary to protect the restraint of trade is
interests of the parties. unreasonable if it prevents
one party, following
termination of a contractual
relationship, in participating
freely in the commercial and
professional world without a
protectable interests of the
other party being served
thereby.”
Factors to consider:
1) The nature of the
restricted activity.
2) The geographical area in
which the restraint of trade
operates.
3) The duration of the
restraint.
4) Whether the restraint of
trade protects a legitimate
interest, e.g. trade secrets,
customer base, or goodwill
of a business (esp if paid
for).
5) Bargaining power of the
parties.
6) Any policy factor relevant
to the particular restraint of
trade.
Court will attempt to balance
these to determine
enforceability.
Associated South African - Can a pre-emption “Whether there is a positive
Bakeries (Pty) Ltd v Oryx contract impose a positive obligation on the grantor
& Vereinigte Bäckerein duty on the grantor to do depends on the wording of
(Pty) Ltd 1982 (3) SA 893 something? the contract”
(A) - I.e. to make or invite an If positive = specific
offer from the grantee? performance. If negative =
interdict.
Bayer SA v Frost 1991 (4) - Can be claimed from a 1) Wrongful conduct (i.e.
SA 559 (A) third party. misrepresentation).
2) Fault: either intentional or
For causation (4) - Negative negligent; cannot be
interest damages innocent.
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, 3) Loss: must have suffered
patrimonial loss.
4) Causation: innocent
party’s loss must have been
caused by the
misrepresentation.
a) Fundamental
misrepresentation (dolus
dans)
b) Incidental
misrepresentation (dolus
incidens)
Both these
misrepresentations will
suffice.
BK Tooling (Edms) Bpk v - Consequences of positive - Apart from cancellation, if
Scope Precision malperformance. the contract is upheld the
Engineering (Edms) Bpk creditor retains his own
1979 (1) SA 391 (A) obligation to perform his part
of the contract unless he
can delay his performance
as a result of exceptio non
adempleti contractus.
- Same for the debtor if the
creditor does not perform
his side.
Bloom v The American - Does a valid contract exist “Acceptance must be a
Swiss Watch Co 1915 AD where the offeree does not conscious response to the
100 consciously respond to an offer, the offeree must be
offer? aware of the offer otherwise
there will be no animus
contrahendi or privity of
contract”.
Brandt v Spies 1960 (4) SA - In an option contract what “If the main offer is invalid
14 (E) happens when the main for some reason (no
offer is invalid or illegal? compliance with formalities)
- Whether an option contract or illegal – the option
must also comply with the contract will fail for lack of
formalities prescribed by law certainty.
for the valid formation of the “A verbal agreement to keep
substantive contract. open a written offer for the
sale of land is a valid option
contract”
Brink v Humphries & - Misrepresentation by Duty to disclose unexpected
Jewell (2005) Omission. terms in contracts.
Brisley v Drotsky 2002 (4) - Could estoppel be used as “Estoppel will not usually be
SA 1 (SCA) a defence against a non- successful in defeating a
variation clause? non-variation clause
because of the strict
requirements for estoppel.”
– It is generally not
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