PVL3702 Assignment 1 Semester 2 2024 | Due 19 August 2024
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Law of Contract (PVL3702)
Instelling
University Of South Africa (Unisa)
Boek
The Law of Contract in South Africa
PVL3702 Assignment 1 Semester 2 2024 | Due 19 August 2024
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 diffe...
PVL3702 EXAM PACK 2024/2025 {QUESTIONS AND ANSWERS }
The Law of Contract in South Africa CASE STUDIES & ANSWERED QUESTIONS
PVL3701 Assignment 1 COMPLETE ANSWERS) Semester 2 2024 - DUE 9 September 2024
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1. 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 is marketing the development himself.
Jack 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 as the purchaser signs the offer to purchase document presented to her by Jack,
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 she never viewed,
and 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 the 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 direct reliance theory 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 the document. Discuss fully and refer to case law in
your answer. Do not apply the Consumer Protection Act 68 of 2008.
Answer One
To determine whether Gloria concluded a legally binding contract with Jack for the cluster home she
viewed and fell in love with, we need to analyze the situation through the lenses of the will theory
and the direct reliance theory.
Will Theory
The will theory posits that the basis of a contract is the actual intention of the parties involved. Under
this theory, a contract is only formed if there is a genuine concurrence of wills. This means both
parties must have a mutual intention to enter into a contract on the agreed terms.
In this case, Gloria believed she was entering into a contract for the cluster home next to the
guardhouse. Her intention was clearly directed towards that specific property. Jack, on the other hand,
intended to sell the cluster home described in the document, which was at the back of the complex.
This discrepancy in intention means there was no true meeting of the minds, or consensus ad idem.
According to the will theory, because Gloria’s intention was not aligned with the actual property
described in the contract, there is no binding contract for the cluster home at the back of the complex.
The will theory would therefore support Gloria's position that she did not conclude a legally binding
contract for that property.
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