LAW OF
CONTRACT
18 MAY 2023
PVL3702
EXAM
ANSWERS
, ACADEMIC HONESTY DECLARATION
1. I understand what academic dishonesty entails and am aware of Unisa’s
policies in this regard.
2. I declare that this assignment is my own, original work. Where I have used
someone else’s work, I have indicated this by using the prescribed style of
referencing. Every contribution to, and quotation in, this assignment from the
work or works of other people has been referenced according to the
prescribed style.
3. I have not allowed, and will not allow, anyone to copy my work with the
intention of passing it off as his or her own work.
4. I did not make use of another student’s work and submit it as my own.
NAME: ……………………………………………………………………………………...
SIGNATURE: ……………………………………………………………………………...
STUDENT NUMBER: ……………………………………………………………………..
MODULE CODE: ...............................................................................................
DATE: ……………………………………………………………………………………....
MARK RECEIVED FOR ASSIGNMENT 01: …………………………………………..
MARK RECEIVED FOR ASSIGNMENT 02: …………………………………………..
, QUESTION 1
ABC company advertises that they have manufactured a patent medicine. The
advert states that if this medication is taken, by any person, according to the
manufacturer’s prescription, that person will not become ill with the
coronavirus sickness. And the advert further states that the company is so
confident of this medication, that if anyone does get sick with this virus, after
taking the medication as prescribed, the company will pay that person R50
000. Based on this advertisement, Y purchased the medication, and he took
the medication as prescribed by the manufacturer (ABC company).
Unfortunately for Y, he still fell ill with the coronavirus. Y approaches you for
legal advice as he wants to institute legal proceedings against ABC company.
Advise Y if a legally binding contract was concluded between him and ABC
company. Discuss fully and refer to case law in your answer. Do not apply the
Consumer Protection Act 68 of 2008. Your answer must not exceed two typed
pages or three written pages.
Under South African contract law, for a contract to be legally binding, certain
elements must be present, including offer, acceptance, consideration, and intention
to create legal relations. An offer is a communication of willingness to enter into a
contract on certain terms, while acceptance is a communication of agreement to
those terms. Consideration is a benefit received or promised in exchange for a
promise, and intention to create legal relations is the intention of the parties to be
bound by the contract.
In this case, ABC company advertised that their patent medicine would prevent the
coronavirus, and that they would pay R50 000 to anyone who fell ill with the virus
after taking the medication as prescribed. This advertisement could be considered
an offer, as it is a communication of willingness to enter into a contract on certain
terms. By purchasing the medication and taking it as prescribed, Y could be
considered to have accepted the offer.
However, there are certain requirements for an offer to be legally binding, including
that it must be clear, definite, and certain, and that it must contain all the essential
terms of the contract. In the case of Hillas & Co Ltd v Arcos Ltd [1932] UKHL 2, the
