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1. Define repudiation
Repudiation is the demonstration by a party, by words or conduct, and without lawful
excuse, of an unequivocal intention no longer to be bound by the contract or by any
obligation forming part of the contract.
2. Define dictum et promissum
A material statement made by the seller to the buyer during negotiations, bearing on the
quality of the res vendita and going beyond mere praise and commendation.
3. Define misrepresentation
A misrepresentation is generally a false statement of past or present fact (not law or
opinion) made by a contractual party to another prior to the conclusion of a contract and
regarding some matter or circumstance relating to the contract.
4. State the elements of a fraudulent misrepresentation. [5]
1. A representation
2. which is, to the knowledge of the representer, false;
3. which the representer intended the representee to act upon;
4. which induced the representee to act; and
5. that the representee suffered damage as a result
5. Discuss the impact of the Consumer Protection Act 68 of 2008 upon the law
of contract with reference to its aims, objectives, scope, national regulatory
institutions, and sanctions. [15]
The CPA is bound to have a huge impact on the conduct of businesses in South Africa,
and the law of contract. The primary purpose of the Act is to protect consumers from
exploitation in the marketplace, and to promote their social and economic welfare. More
specifically, it aims to:
● Establish a legal framework for the achievement and maintenance of a consumer
market that is fair, accessible, efficient, and responsible, for the benefit of
consumers generally;
● Promote fair business practices;
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, ● Protect consumers from unconscionable, unjust, or unreasonable business
practices.
The scope of the Act is very wide. It applies to:
● Most transactions concluded in the ordinary course of business between
suppliers and consumers within South Africa, as well as;
● The promotion of goods and services that could lead to such transactions, and;
● The goods and services themselves once the transaction has been concluded.
A supplier is any person (including a juristic person, trust, and organ of State) who
markets any goods or services. A consumer includes not only the end-consumer of
goods and services but also:
● Franchisees
● Relatively small businesses in the supply chain (asset value or annual turnover
below the threshold determined by the Minister)
The Act does not apply to any transaction in terms of which goods and services are
promoted or supplied:
● To the State
● To a juristic person with an asset value or annual turnover above the threshold
● Employment contracts
● Credit agreements
● Transactions exempted by the Minister
These rights are protected and enforced not only through the courts, but the National
Consumer Commission and the National Consumer Tribunal. Failure to comply with
provisions of the Act might attract various sanctions, commencing with compliance
notices and leading possibly to the imposition of fines and criminal penalties. Contractual
provisions in contravention of the Act may be declared null and void to the extent of
non-compliance.
6. List and very briefly discuss the requirements for a valid offer and
acceptance. Discuss with reference to case law (15)
Requirements for a valid offer
● Must be firm. (That is to say, with the intention that its acceptance will call into
being a binding contract.)
● Must be complete. (It must contain all the material terms of the proposed
agreement.)
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, ● Must be clear and certain. (It should be enough for the addressee to answer
merely “yes” for a contract to come into being.)
● Must meet the requirements of the Consumer Protection Act.
An important question arises in this connection with regard to the legal effect of
advertisements. For instance, a shop-keeper places an advertisement in the window of
his shop: ‘Jimmy Choo shoes obtainable here at R1500 per pair’. This statement does
not constitute an offer since the advertiser clearly could not have contemplated that mere
acceptance of his statement would create a legal bond between himself and the
acceptor. (Crawley v Rex) However, a promise of reward is a form of advertisement that
does constitute an offer. (Bloom v American Swiss Watch Co)
The offer must come to the attention of the offeree (addressee) This requirement is a
natural consequence of the fact that, as has been stated, an agreement is a conscious
or stated mutuality of consent. The offeree must therefore have knowledge of the offer to
be able to react to it. (Bloom case)
An offer must as a rule be directed at a definite person (offeres) or persons (offerees),
although it may also be directed at undefined persons. An offer directed at a defined
person or persons: Where an offer is addressed to unascertained persons, it may be
accepted by anyone of them, but where it is addressed to a specific person or persons, it
may be accepted by only the addressee(s). An offer directed at undefined persons: A
promise of reward, and auctions, are forms of this type of offer. An offer lapses in the
following circumstances:
1. after the expiry or lapse of the prescribed time, or of a reasonable time
2. upon the death of either the offerer or the offeree
3. upon being rejected o Upon revocation.
Requirements for a valid acceptance
● Must be unqualified. (It must be a complete and unequivocal assent to every
element of the offer.)
● Must be by the person to whom the offer was made – Bird v Summerville. (E.g.
the offer to sell farm A cannot be accepted by A and B jointly.)
● Must be a conscious response to the offer – Bloom v American Swiss Watch Co.
(A person cannot accept an offer if he was not aware of it.)
● Must be in the form prescribed by the offeror, if any.
Bloom v American Swiss Watch case: In casu, the company offered a reward to any
person who could provide information which would lead to the arrest of thieves who had
stolen jewellery from the company. B furnished information while ignorant of the reward
offered. When the advertisement of the reward came to his notice, he tried to claim the
promised sum from the company. Court held that he could not claim the reward because
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