Amod and Bhana) themselves can prescribe formalities. It depends on their intention when the
contract came into existence: whether reduction to writing was a requirement for the coming into
effect of the contract, or whether reduction to writing was merely to facilitate the proof of its
terms.
...
This tutorial letter contains the commentary and feedback on assignment 02.
The aim of this commentary is to draw your attention to certain important aspects of the
questions which you may have overlooked. Read the comments carefully to make sure that you
understand both why the particular answer is correct and why the distractors (the incorrect
options) are incorrect. If you are still not sure after reading the commentary, go back to the
original source in your prescribed textbook.
NOTE: All references in brackets refer to your prescribed textbook, Schulze H et al General
Principles of Commercial Law 8th ed (2015) Juta.
COMMENTARY AND FEEDBACK ON COMPULSORY ASSIGNMENT 02
QUESTION 1
(Chapter 7: Formalities)
3 is CORRECT. If an oral agreement precedes a written agreement, it must be determined from
the contract whether the parties intended reduction to writing to be a requirement for validity or
whether it is merely proof of their oral agreement. It will therefore depend on the intention of
Amod and Bhana whether the contract came into existence on 12 February or 30 March 2016.
1 is INCORRECT. Even though no formalities are required by legislation, the contracting parties
(Amod and Bhana) themselves can prescribe formalities. It depends on their intention when the
contract came into existence: whether reduction to writing was a requirement for the coming into
effect of the contract, or whether reduction to writing was merely to facilitate the proof of its
terms.
2 is INCORRECT. No formalities are required by legislation for a valid contract of sale of a
vehicle.
4 is INCORRECT. Date of delivery has no effect on the existence of a contract.
QUESTION 2
(Chapter 7: Formalities)
4 is the CORRECT answer, because the statement is INCORRECT. Where a signature is
required on an electronic document, it is not possible to attach a traditional handwritten
signature to the document. This is electronically impossible. In such a case the Electronic
Communications and Transactions Act 25 of 2002 provides that the electronic signature can be
anything from the typing of a name at the end of a document, a scanned handwritten signature
or the use of complex identification technology as long as it is intended to be a signature. But
where a signature is required by law for the document to be valid, only the use of an advanced
electronic signature will comply with this Act.
1 is an INCORRECT answer because the statement is CORRECT. An electronic signature can
be a typed name at the end of an electronic document in terms of the Act, except in those cases
where an advanced electronic signature is prescribed by law.
2
2023/2024
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