CLA1503 Assignment 1 .
1a) According to the Alienation of Land Act 68 of 1981, no contract for the alienation of land is
valid unless it is contained in a contract of alienation signed by the parties to the contract or by
their agents acting on their written instructions. However, any alienation...
, 1a) According to the Alienation of Land Act 68 of 1981, no contract for the alienation of land is
valid unless it is contained in a contract of alienation signed by the parties to the contract or by
their agents acting on their written instructions. However, any alienation of land in contravention
of the Act will be deemed to be valid if both parties have performed fully and the land has been
transferred to the new owner.
The formalities required by both parties (Moloko and Mamba) include the compliance of
legislation relating to the contract of sale for the purchase of a piece of land. Whereby, as per the
Alienation of Land Act 68 of 1981, no contract is valid for the alienation of land unless it is
contained in a contract of alienation signed by the parties to the contract or their agents acting on
instructions written by the principles. Thus, Moloko and Mamba need to create and complete a
contract of alienation signed by both parties.
Furthermore, these formalities also include the condition in which Mamba must first be granted
approval for a mortgage bond by Bruto Bank. Thus, if this was an oral agreement between Moloko
and Mamba and it precedes the written agreement, it must be determined from the contract
whether the parties intended reduction to writing to be a requirement for validity or mere proof of
their oral contract. If writing is a requirement for the validity of the contract, the ‘contract’ remains
invalid until it is put in writing in the contract between Moloko and Mamba.
7.3.2 Formalities required by the parties
Apart from the instances where the legislature requires compliance with certain formalities to
create a valid contract, it sometimes happens that the contracting parties themselves prescribe
formalities. If the offeror sets the requirement that acceptance of the offer must be in writing,
acceptance of the offer will result in a valid contract only if the acceptance is in writing.
Parties sometimes negotiate the contents of their contract orally and agree that the final
agreement will be in writing. If an oral agreement precedes the written agreement, it must be
determined from the contract whether the parties intended reduction to writing to be a requirement
for validity or mere proof of their oral contract. If writing is a requirement for the validity of the
contract, the ‘contract’ remains invalid until it is put in writing. Conversely, if the parties merely
intended the written agreement to ease the proof of the oral agreement’s terms, the oral contract
becomes binding immediately upon conclusion, even though nothing has been put in writing.
7.3.3 Writing and signing of electronic transactions
As noted above, the most commonly prescribed formalities are those requiring the writing and
signing of certain agreements. As more agreements are being concluded electronically, the Electronic
Communications and Transactions Act 25 of 2002 (ECTA) provides that data messages (electronic
messages) are recognised as writing if the document or information is accessible for future use,
except in respect of transactions concluded under the following Acts:
• an agreement for alienation of immovable property as provided for in the Alienation of
Land Act 68 of 1981
• an agreement for the long-term lease of immovable property in excess of 20 years as
provided for in the Alienation of Land Act 68 of 1981
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