Ponder over the following questions:
1. X made an offer to Y on 1 February. On 12 February Y writes a letter to X stating that he accepted the offer. Y mails the letter on 18 February. The letter is delivered to X’s mailbox on 23 February. X reads the letter on 26 February.
if we apply the different theories of when and where an offer is accepted, when and where was the contract concluded in terms of each theory?
In South African law, when and where will the offer be accepted?
would it make a difference if X made the offer in writing?
2. On 15 March Andy bumps into Bryan whilst on holiday in the Cape and offers to sell his computer to him for R10 000 On 18 March Bryan writes a letter of acceptance and faxes it from Cape Town to Andy's home in Johannesburg. Andy sees the fax whe he returns from his holiday on 20 March.
Determine the time and place of the formation of the contract if :
Andy does not stipulate a method of acceptance
Andy instructs him to fax a letter to his home if he wants to accept the offer.
3.If an offer is made telephonically and the acceptance is posted will the expedition theory apply. Why?
4. Compare the different pacta de Contrahendo with one another.
5.B has an option to purchase A's car for R25000 before Monday 12pm. On Saterday, A sells his car to C for R30 000. Explain the consequence of A's actions.
can B still exercise his right of the option and purchase the car?
what if A transfers ownership of the car to C on Saterday?
Does it make a difference if C was aware of B's right of option at the timeof the sale?
6. Amani, Betty and Chris have a lift club for driving to the university every morning and back in the afternoon. On Monday afternoon, when Betty's car refused to start for the 7th time this month se gave it a good kick and asked her friends " Anyone wants to give me R5 for this wreck?" Immediatly Chris responded by taking out R5 from his pocket and handing it to Betty. Has Betty sold her car?
7.when is an offer viod because it is to vague?
8.What is an offer to the public? When is it an advertisement to do business?
Wednesday, March 24, 2010
Tuesday, March 23, 2010
Monday, March 8, 2010
THE PURPOSE OF KNOWING WHEN AND WHERE A CONTRACT IS FORMED
If a contract is an agreement that creates legal obligations for the parties, that is binding in law, then it is very important to know
· was there a contract
· when was it entered into
· where was it entered into
· what was the content of the contract
The answers to each one of these questions will have one or more effect on how we will handle our client’s claim / defense in civil court.
· If there was no contract – we will not have a claim at all (how do I prove that there was / was not a contract)
· When was the contract entered into – the date will determine prescription, delivery and many other practical implications to the contract. (prescription – no claim)
· Where – this will determine jurisdiction (can I sue in this court or not)
· The content of a contract will form the basis of my claim / defense
REMEMBER :
A CONTRACT MUST ALWAYS BE A VALID CONTRACT MEANING:-
· There must be consensus
· The parties must have contractual capacity
· The formalities must be met if any
· It must be legal
· It must be possible
· It must have certainty
Forming of a contract
A contract is normally formed by way of an offer and an acceptance.
Subscribe to:
Posts (Atom)