Topics
Semester 1............................................................................................................................................ 6
1. Introduction..................................................................................................................................... 6
1.1 Key concepts ........................................................................................................................... 6
1.1.1 The definition and features of the contract that creates obligations .............. 6
1.2 The development and sources of the law of contract ................................................ 9
1.2.1 The South African common law .................................................................................. 9
1.2.2 Statutory law and the impact of the Constitution................................................ 10
1.2.3 Indigenous, customary law and ubuntu (not discussed in class) .................... 10
1.3 The underlying (constitutional) values of the law of contract ................................. 10
1.4 The relationship between common-law rules of contract and consumer
legislation (Consumer Protection Act)................................................................................... 12
1.4.1 Introduction to CPA; its purpose & interpretation ................................................ 12
1.4.2 Application of the CPA ................................................................................................ 12
1.4.3 Consumer rights (Chapter 2 CPA) ............................................................................ 13
1.4.4 Remedies and enforcement of CPA ....................................................................... 14
2. Consensus as requirement for contractual liability............................................................ 15
2.1 Offer and acceptance as an indication of consensus ............................................. 15
2.1.1 Introduction ..................................................................................................................... 15
2.1.2 The requirements for a valid offer ............................................................................. 15
2.1.3 The consequences of an offer ................................................................................... 19
2.1.4 The termination of an offer ......................................................................................... 19
2.1.5 The requirements for acceptance ........................................................................... 20
2.1.6 The consequences of acceptance ......................................................................... 22
2.2 Pacta de contrahendo: options and rights of preference ....................................... 23
2.2.1 Option ............................................................................................................................... 23
2.2.2 Preference contract/ right of preference .............................................................. 27
2.3 Pre-contractual relationships ............................................................................................. 32
3. Contractual liability if there is no actual consensus .......................................................... 33
3.1 When is consensus absent?: The influence of various types of mistake on
consensus ....................................................................................................................................... 34
3.1.1 The meaning of mistake............................................................................................... 34
3.1.2 Effect of a mistake: depends on type of mistake ................................................ 34
3.2 Liability in the absence of consensus .............................................................................. 40
1
Private Law 372 (Contracts) Class Notes 2023
, 3.2.1 Theories of contractual liability .................................................................................. 40
3.2.2 Doctrines that establish liability on objective grounds (when there is no
actual consensus).................................................................................................................... 43
4. Rescission of an existing contract due to improperly obtained consent.................... 52
4.1 General .................................................................................................................................... 52
4.2 Misrepresentation .................................................................................................................. 54
4.2.1 Introduction: Misrepresentation and mistake ........................................................ 54
4.2.2 Elements of a misrepresentation ............................................................................... 56
4.2.3 Remedies arising from misrepresentation ............................................................... 61
4.2.4 Excluding liability for misrepresentation................................................................... 68
4.3 Duress (metus) ........................................................................................................................ 70
Requirements of duress: ......................................................................................................... 70
4.4 Undue influence .................................................................................................................... 75
4.5 Other cases of improperly obtained consent .............................................................. 79
Tutorial 1 feedback: .................................................................................................................... 82
Values guiding the development of the common law on improperly obtained
consent ........................................................................................................................................... 84
5. Contractual capacity ................................................................................................................ 86
6. Formalities ...................................................................................................................................... 86
6.1 Introduction ............................................................................................................................ 86
6.2 Statutory formalities .............................................................................................................. 88
6.3 Formalities imposed by parties .......................................................................................... 95
6.3.1 Formalities imposed by parties for concluding contract ................................... 95
6.3.2 Formalities imposed for variation of contract........................................................ 95
6.4 The “parol evidence” rule ................................................................................................ 100
6.5 Rectification.......................................................................................................................... 105
Requirements for rectification: ........................................................................................... 105
7. The requirement of possibility of performance ................................................................. 108
7.1 General rule .......................................................................................................................... 108
7.2 Distinctions (HP Fig 8.1) ...................................................................................................... 109
7.3 Meaning of impossibility .................................................................................................... 109
7.4 Consequences of impossibility ........................................................................................ 111
7.5 Partial impossibility .............................................................................................................. 112
7.6 Temporary impossiblity....................................................................................................... 112
8. Certainty of performance....................................................................................................... 112
2
Private Law 372 (Contracts) Class Notes 2023
, 8.1 General rule: ......................................................................................................................... 112
8.2 Application of rule .............................................................................................................. 113
8.3 Consequences of uncertainty HP 8.2.3 ........................................................................ 117
9. Legality ......................................................................................................................................... 117
9.1 Introduction .......................................................................................................................... 117
9.2 Statutory illegality ................................................................................................................ 118
9.3 Common-law illegality ....................................................................................................... 119
9.4 Specific examples of illegality: ........................................................................................ 126
9.5 The consequences of illegality ........................................................................................ 136
9.5.1 Introduction ................................................................................................................... 136
9.5.2 Valid, but unenforceable .......................................................................................... 137
9.5.3 Void (and unenforceable) ........................................................................................ 137
Semester 2: (middle of contract lifespan) .............................................................................. 141
1 Content and operation of a contract ................................................................................. 141
1.1 General .................................................................................................................................. 141
1.2 Parties to the contract ....................................................................................................... 141
1.2.1 Multiplicity of parties ....................................................................................................... 142
1.2.2 “Privity of contract” (9.3.1) ........................................................................................ 146
1.2.3 Representation ............................................................................................................. 147
1.2.4 Stipulatio alteri (contract in favour of a third) ..................................................... 149
1.2.5 Describing the parties H&P 16.2 ............................................................................... 150
1.3 Types of obligations ............................................................................................................ 150
1.4 Types of terms....................................................................................................................... 152
1.4.1 Introduction ................................................................................................................... 152
1.4.2 Essentialia, naturalia, incidentalia ........................................................................... 152
1.4.3 Express, tacit, and implied terms ............................................................................. 155
1.4.4. General terms (typical types of terms) ................................................................. 159
1.5 Proof and interpretation of contracts ........................................................................... 164
1.5.1 Introduction ................................................................................................................... 164
1.5.2 Interpretation: general principles ............................................................................ 164
1.5.3 Further “guidelines” of interpretation/canons of construction ....................... 168
1.5.4 Interpretation of exemption clauses ...................................................................... 168
1.5.5 Interpretation and the CPA ...................................................................................... 168
2. Breach of contract ................................................................................................................... 169
2.1 General .................................................................................................................................. 169
3
Private Law 372 (Contracts) Class Notes 2023
, 2.2 Positive malperformance.................................................................................................. 170
2.3 Mora debitoris (negative malperformance) ............................................................... 173
2.4 Making performance impossible/rendering performance impossible ................ 178
Tutorial 4 feedback: .................................................................................................................. 179
2.5 Repudiation .......................................................................................................................... 180
2.5.1 Definition......................................................................................................................... 180
2.5.2 Examples ........................................................................................................................ 180
2.5.3 Origin ............................................................................................................................... 181
2.5.4 Requirements ................................................................................................................ 182
2.5.5 Consequences ............................................................................................................. 184
2.6 Mora creditoris ..................................................................................................................... 187
2.6.1 Definition......................................................................................................................... 187
2.6.2 Requirements ................................................................................................................ 188
2.6.3 Consequences ............................................................................................................. 188
3. Remedies arising from breach .............................................................................................. 191
3.2 Fulfilment/Enforcement ..................................................................................................... 192
3.2.1 Specific performance................................................................................................. 193
3.2.2 Exceptio non adimpleti contractus (the exceptio rule) ................................... 200
Test 2 feedback:......................................................................................................................... 205
3.3 Cancellation ......................................................................................................................... 206
3.3.1 General ........................................................................................................................... 206
3.3.2 Exercising right to cancel .......................................................................................... 208
3.3.3 Loss of the right to cancel ......................................................................................... 210
3.3.4 Consequences of cancellation ............................................................................... 213
3.4 Damages.......................................................................................................................... 218
3.4.1 General ........................................................................................................................... 219
Tutorial 5 feedback: .................................................................................................................. 224
3.4.2 Specific requirements for damages claim ........................................................... 228
3.4.3 Penalty clauses: ............................................................................................................ 237
3.5 Statutory remedies: Consumer Protection Act 68 of 2008 ...................................... 238
3.5.1 Defective services ....................................................................................................... 239
3.5.2 Defective goods .......................................................................................................... 241
4. Transfer of obligations: cession .............................................................................................. 243
4.1 General .................................................................................................................................. 243
4.2 Requirements ....................................................................................................................... 243
4
Private Law 372 (Contracts) Class Notes 2023
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kaylamarais1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R80,00. You're not tied to anything after your purchase.
