PVL3702
ASSIGNMENT 1
SEMESTER 2
UNIQUE NUMBER: 698664
DUE DATE: 21 August 2023
Written Assignment Submission Guidelines:
The due date for the submission of Assignment 01 is NOT LATER THAN 18H00 on 21 August
2023.
.
NB: This assignment must be submitted by all students who are registered for the PVL3702
module in the second semester of 2023
ASSIGNMENT 01 QUESTION:
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
people who submitted written offers for the bicycle. Jane’s offer was for R150 000, and
Portia’s offer was for R190 000. Although Carol intended to accept Portia’s offer, she
erroneously wrote a letter to Jane, wherein she accepted Jane’s offer. Jane believes that an
enforceable contract was concluded but Carol denies this.
Apply the iustus error doctrine and advise if a legally binding contract was concluded
between Carol and Jane. Discuss fully and refer to case law in your answer. Do not
apply the Consumer Protection Act 68 of 2008. [20]
ANSWER:
The iustus error doctrine, also known as the doctrine of justifiable error, is a legal principle
that addresses situations where a party makes a mistake in the formation of a contract, but
that mistake is considered to be reasonable or justifiable under the circumstances. The key
question in this case is whether a legally binding contract was concluded between Carol and
Jane despite Carol's mistake in accepting Jane's offer.
To determine whether the iustus error doctrine applies and whether a legally binding
contract was formed, we need to consider the following elements:
1. Offer and Acceptance: An essential element of contract formation is the presence of
a valid offer and its acceptance. In this case, Carol advertised a limited-edition
bicycle for sale, inviting offers from the public. Both Jane and Portia submitted written
offers – Jane's offer was R150,000, and Portia's offer was R190,000.
2. Mistake: Carol's mistake is central to this case. She intended to accept Portia's offer
but mistakenly sent a letter of acceptance to Jane. The mistake was made by Carol,
not Jane.
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