PVL3702 Assignment 1
PVL3702
(ANSWERS) Assignment11 2025
Semester
Semester
(198635) 1 2025
- DUE (198635)
7 April -
2025
DUE 7 April 2025
,Jack is a property developer who is well known for building residential
developments. He recently built cluster homes in an upmarket suburb in Cape
Town. All the cluster homes are built with the same size and layout, and they only
differ with the positioning of each cluster in the complex. This development is
brand new, and Jack appoints Sandy as his estate agent to market the sale of the
cluster homes. Sandy shows Gloria a beautiful cluster home in the complex, which
is next to the guardhouse at the entrance of the complex. Gloria immediately falls
in love with this cluster home and a few days later she signs the offer to purchase
document presented to her by Gloria, who completed all the relevant details on
the document relating to the description of the property. The document is later
also signed by Jack as the seller. However, it subsequently turns out that the cluster
home referred to in the signed document is not the one that Gloria viewed and fell
in love with. The one she signed for and the one she viewed are different properties.
In fact, the cluster home she signed for is right at the back of the complex, which
is not in the best position in the complex. Jack is of the view that a legally binding
contract was concluded with Gloria, in accordance with the written signed
document, for the cluster home described in this document. Gloria approaches you
for legal advice as she thought that she was signing for the cluster home that was
next to the guardhouse at the entrance of the complex. Apply the will theory and
the iustus error doctrine and advise Gloria whether she concluded a legally binding
contract with Jack, based on the written document that they both signed, for the
cluster home described in this document. Discuss fully and refer to case law in your
answer. Do not apply the Consumer Protection Act 68 of 2008. Jack wants to sell
his Yamaha speedboat. He approaches Jill, who sells speedboats for a living, and
asks her if she is interested in buying his Yamaha speedboat. Jill signs a written
offer and submits it to Jack for the Yamaha speedboat for R200 000, in a document
titled “Contract of Sale.” The offer sets out all the relevant and material terms, and
it includes the following clause: “This offer is irrevocable and expires at noon on 5
, March 2024, and upon signature by the seller will indicate his acceptance, as well
as the conclusion of a valid contract of sale.” On 4 March 2024 Jack signs the
contract of sale document and he inserts the date of his signature therein, but he
forgets to immediately inform Jill that he has done so. Only on 8 March 2024, Jack
informs Jill of his acceptance. Jill indicates to Jack that her offer lapsed on 5 March
2024, and that Jack did not inform her of his acceptance timeously. Jill further
informs Jack that she no longer wants to purchase the Yamaha speedboat. Jack
approaches you for legal advice. Assume that a valid offer was made by Jill to Jack
for the Yamaha speedboat. You must assume further that Jacks acceptance was
unqualified, and that he was the correct person to accept Jill’s offer because the
offer was made to him, and also that he was conscious and aware of the offer that
was made to him when he signed the contract of sale document. You must advise
Jack only about the relevant aspects of his acceptance which are pertinent for this
factual scenario, by making reference to the case law that you were required to
read, and by also referring to the prescribed textbook. You must further advise Jack
about his concern that he only informed Jill after 5 March 2024, that he accepted
Jill’s offer. Ultimately you must advise Jack if a legally binding contract was
concluded between him and Jill. Discuss fully. Do not apply the direct reliance
theory and the iustus error doctrine to this question. Also do not apply the
Consumer Protection Act 68 of 2008.
QUESTION 1 (3 ANSWERS PROVIDED)
In South African contract law, an acceptance is a clear and unambiguous
declaration by the offeree that he or she assents to all the terms of the offer. A
contract is formed at the moment when the acceptance becomes effective. The
general rule, based on the information theory, holds that acceptance takes effect
only when it is communicated to the offeror (see Pillay v Shaik 2009 (4) SA 74 (SCA)).
In other words, a contract only comes into existence when the offeror learns of the
offeree’s acceptance.
