PVL3702 Assignment 1 Semester 1 2026 (Answer Guide) - DUE 31
March 2026
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2026
Contents
PVL3702 ASSIGNMENT 01..................................................................................................................... 2
1. Identification of the Legal Problem ............................................................................................. 2
2. The Relevant Legal Principles...................................................................................................... 2
3. Application of the Law to the Facts ............................................................................................ 3
4. Advice to Raymond ......................................................................................................................... 4
LIST OF REFERENCES ........................................................................................................................... 4
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PVL3702 ASSIGNMENT 01
Law of Contract
Unique Number: 270727
1. Identification of the Legal Problem
The central legal issue in this matter is whether the contract concluded between Jabu
and Raymond is valid, given that both parties contracted on the assumption that the ring
was a genuine diamond, whereas it later emerged that the ring was in fact artificial.
The question therefore concerns the effect of mistake (error) in contract law, specifically
whether the mistake relates to the nature or identity of the merx and whether it results in
the contract being void ab initio. The issue is not one of breach or latent defects, but
rather whether consensus (agreement) was ever properly established.
2. The Relevant Legal Principles
In South African contract law, a valid contract requires consensus between the parties
(Dhurumraj, 2020). Consensus is absent where there is a material mistake that
excludes true agreement. However, not every mistake renders a contract void. The
mistake must be material and must relate to an essential element of the contract.
A distinction is drawn between different types of mistake. A common mistake (error
communis) occurs where both parties share the same incorrect assumption regarding a
material fact. A unilateral mistake occurs where only one party is mistaken. Only certain
mistakes are legally relevant and capable of nullifying a contract (Van der Merwe et al.,
2012).
A mistake is material if it relates to the identity of the contracting party, the nature of the
contract, or the identity or attributes of the merx (Dhurumraj, 2020). Where both parties
are mistaken about the identity or essential characteristics of the subject matter, there is
no true meeting of minds.