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PVL3702 Exam pack 2024(Questions and answers)
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PVL3702 EXAM PACK2024
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:gabrielmusyoka940@gmail.com
, lOMoARcPSD|31863004
Contract Law
Self evaluation
assignment
NB for exam purposes
, lOMoARcPSD|31863004
Question 1
Mary agrees to accompany John to the cinema and consequently John purchases the tickets. Mary, however,
forgets about the arrangement and goes to visit a friend. Does John have a valid contract with Mary on the basis
of which he may sue Mary for not keeping their arrangement? Substantiate your answer in one sentence. (1)
Answer 1
No - John and Mary did not contemplate juristic consequences with regard to their arrangement.
Discussion 1
Parties may be in agreement about what is to be done on either side without there being a contract. There can be
no contract unless the parties have the serious and deliberate intention to bind themselves juristically. In this case,
the agreement between John and Mary was merely a social engagement and there was consequently no intention
to create liability or be bound in law (study guide 13-14).
Question 2
Fred offers to purchase Peter's television set at a purchase price of R500. Peter agrees to the sale but tells Fred
that he wants R600 for the set, whereupon Fred indicates to Peter that he is no longer interested. A week later
Peter telephones Fred and tells him that he has accepted the offer of R500. In the meantime, however, Fred has
purchased another television set. Did Fred and Peter conclude a valid contract? Substantiate your answer in two
sentences. (1)
Answer 2
No - an offer lapses where a counter-offer has been made by the offeree.
Discussion 2
A counter-offer by the offeree is regarded as tantamount to a rejection. In principle, anything more or less than an
unqualified acceptance of the entire offer amounts to a counter-offer and constitutes a rejection of the original
offer. Bear in mind, however, that in spite of an apparent deviation from the terms of an offer, a declaration may
under certain circumstances still constitute an unqualified acceptance (study guide 27).
Question 3
Question 3.1
Bill grants Angus an option which is valid until 1 February 2005, to purchase Bill's Volkswagen beetle for R6 000. The
written option is personally handed by Bill to Angus on 15 January 2005. Angus posts a letter of acceptance to Bill on
25 January 2005. The letter reaches Bill on 1 February 2005 but he only reads it on 3 February 2005. Was a valid
contract concluded between Bill and Angus? Substantiate your answer in two sentences. (1)
Answer 3.1
No - the information theory will apply.
Discussion 3.1
, lOMoARcPSD|31863004
There can be no consensus unless the offeror knows that his offer has been accepted. The general rule, therefore, is
that an agreement is formed only when the acceptance is communicated to the offeror. Please note that the
expedition theory is not applicable in this case as the offer was not made by post (study guide 28-30).
Question 3.2
If Bill sold the car to Jack on 20 January 2005, would Angus have any legal remedy or remedies against Bill?
Substantiate your answer in one sentence. (1)
Answer 3.2
Yes - he would have the remedies available to him which are available in the case of breach of contract.
Discussion 3.2
Revocation of the substantive offer constitutes breach of contract. As it is possible to commit breach of contract, the
fact that the offeror will be committing breach of contract should he revoke his substantive offer should not mean
that he cannot revoke it, and once he has revoked it there will no longer be an offer for the offeree to accept. In
general, however, the opinion of writers and the courts is that an option renders the substantive offer irrevocable
(study guide 38).
Question 4
Question 4.1
Al bought land from Pete. The property had been put up for auction on the day before the sale took place. In the
advertisement of the auction, which Al read, the property was described as being at site A where the auction would
also take place. In fact the property was situated at site B, some 200 to 300 metres down the road. The auctioneer
realised this mistake and made an announcement to that effect before the commencement of the auction. Al,
however, arrived late and did not hear this announcement. Al's bid was not accepted. The next day Al made a higher
offer at the auctioneer's office. The auctioneer only pointed out the true position of the property on a street map,
but this did not alert Al to the fact that the property was not the one for which the auction was held. Al's higher
offer was accepted. Al avers that he is not bound by the contract because of his mistake. You may accept that the
auctioneer acted throughout as Pete's agent and that his actions can be attributed to Pete.
Is Al's mistake material? Substantiate your answer in one sentence. (1)
Answer 4.1
Yes - Al labours under an error in corpore which is material.
Discussion 4.1
This is a mistake regarding the identity of the subject matter of the contract. Pete (through his agent) intends selling
site B; Al intends buying site A. Material mistake is usually subdivided into different categories such as error in
corpore, error in persona and error in negotio. Although this classification may assist in identifying particular
instances of mistake as material, it does not represent a closed number of types of material mistake. As long as
material mistake is defined with reference to the content of the obligations, these classifications are not necessary
(study guide 53-58).
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