CONTRACT LAW EXAM CHEAT SHEET
1. The Offer & Contract Formation
Valid Offer Requirements:
1. Firm: Serious intention to bind (animus contrahendi).
2. Complete: Contains all material terms.
3. Clear & Certain.
Advertisements: Generally an invitation to do business, NOT a
binding offer (Crawley v Rex). Often rely on "puffery" (simplex
commendatio).
2. Consensus & Mistake (Dissensus)
When parties are not ad idem (of one mind), the contract's validity is
threatened.
Material Mistake: Goes to the heart of the agreement (e.g., error
in corpore - mistake regarding the identity of the subject matter).
Destroys subjective consensus.
Theories of Contractual Liability:
o Will Theory: Subjective agreement. (Strict application = no
contract if there's a mistake).
o Declaration Theory: Objective manifestation.
o Reliance Theory (Quasi-Mutual Assent): The compromise. A
party is bound if they created a reasonable belief that
consensus was reached.
The Sonap Test (Determining Reasonable Reliance):
1. Was there a misrepresentation as to intention?
2. Who made it?
, 3. Was the other party actually and reasonably misled? (No
"snatching at a bargain").
Iustus Error Doctrine: A mistake must be material and
reasonable to escape the contract. A mistake is iustus if induced
by the other party/agent's misrepresentation. Result: Contract void
ab initio.
3. Improperly Obtained Consensus (Voidable Contracts)
Subjective consensus exists, but it was obtained unfairly. The remedy is
restitutio in integrum (rescission and restitution).
Ground Key Elements & Requirements Case Law
False statement of past/present
fact, made by a party/agent, with
Misrepresentation intention to induce, and actually N/A
induced the contract. Must be
material.
Actual violence/reasonable fear,
threat of imminent/inevitable
Duress (Metus) evil to person/family/property, N/A
threat is unlawful (contra bonos
mores), caused the contract.
Undue Influence 1. Influence obtained over Preller v
victim. Jordaan
2. Weakened victim's resistance.
1. The Offer & Contract Formation
Valid Offer Requirements:
1. Firm: Serious intention to bind (animus contrahendi).
2. Complete: Contains all material terms.
3. Clear & Certain.
Advertisements: Generally an invitation to do business, NOT a
binding offer (Crawley v Rex). Often rely on "puffery" (simplex
commendatio).
2. Consensus & Mistake (Dissensus)
When parties are not ad idem (of one mind), the contract's validity is
threatened.
Material Mistake: Goes to the heart of the agreement (e.g., error
in corpore - mistake regarding the identity of the subject matter).
Destroys subjective consensus.
Theories of Contractual Liability:
o Will Theory: Subjective agreement. (Strict application = no
contract if there's a mistake).
o Declaration Theory: Objective manifestation.
o Reliance Theory (Quasi-Mutual Assent): The compromise. A
party is bound if they created a reasonable belief that
consensus was reached.
The Sonap Test (Determining Reasonable Reliance):
1. Was there a misrepresentation as to intention?
2. Who made it?
, 3. Was the other party actually and reasonably misled? (No
"snatching at a bargain").
Iustus Error Doctrine: A mistake must be material and
reasonable to escape the contract. A mistake is iustus if induced
by the other party/agent's misrepresentation. Result: Contract void
ab initio.
3. Improperly Obtained Consensus (Voidable Contracts)
Subjective consensus exists, but it was obtained unfairly. The remedy is
restitutio in integrum (rescission and restitution).
Ground Key Elements & Requirements Case Law
False statement of past/present
fact, made by a party/agent, with
Misrepresentation intention to induce, and actually N/A
induced the contract. Must be
material.
Actual violence/reasonable fear,
threat of imminent/inevitable
Duress (Metus) evil to person/family/property, N/A
threat is unlawful (contra bonos
mores), caused the contract.
Undue Influence 1. Influence obtained over Preller v
victim. Jordaan
2. Weakened victim's resistance.
