, PLEASE USE THIS DOCUMENT AS A GUIDE ONLY
1. Jack hosts a party at his home which Peter attends. At the party, Peter admires Jack’s
collection of paintings. Jack makes a legally valid offer to sell Peter an original painting of Table
Mountain for R600 000. The next day Peter meets his friend Themba, and he informs him of
Jack’s offer. A few days later Themba also views the same painting, and thereafter Peter and
Themba inform Jack that they want to purchase it together, and will pay R300 000 each to Jack
for his original painting of Table Mountain. Jack needs to think about it and requests seven (7)
days to revert to Peter and Themba, who agree to this. It is only after ten (10) days lapse that
Jack informs Peter and Themba that he agrees to sell his original painting of Table Mountain to
them for R600 000, which they can pay in equal amounts. Peter and Themba decide not to
proceed with the purchase of the painting, and they inform Jack accordingly. Advise Jack if at
any stage a valid contract (or contracts) was (or were) concluded in this scenario based on an
offer and acceptance analysis. Assume that during all communications, the parties considered
Jack’s painting of Table Mountain, the purchase price, and the relevant parties, to constitute all
the material terms to discuss. Refer to case law in your answer. For this question, do not discuss
the direct reliance theory and the iustus error doctrine. And do not discuss an agreement to
agree or an agreement to negotiate. Also do not not apply the Consumer Protection Act 68 of
2008.
ADVICE TO JACK: VALID CONTRACT ANALYSIS
1. INTRODUCTION
The central legal question in this scenario is whether a valid contract was concluded between Jack
and Peter and Themba based on an offer and acceptance analysis. The facts present a progression
from an initial offer, through a counter-offer, to a late acceptance. This analysis will examine each
stage of the process to determine whether a legally binding contract or contracts was formed at any
point. The rules of offer and acceptance constitute a useful analytical tool for determining when and
where consensus has been reached between contracting parties. However, it must be remembered
that offer and acceptance is merely an analytical tool and the primary basis of contract is consensus.¹
The offer and acceptance analysis is particularly relevant to this scenario because the parties were
negotiating at a distance and the communications between them raise questions about when a
binding agreement was formed.
2. JACK'S ORIGINAL OFFER TO PETER
Jack made a legally valid offer to sell Peter an original painting of Table Mountain for R600,000. For
an offer to be valid, it must be firm, complete, and sufficiently clear and certain.² The facts state that
the parties considered the painting, the purchase price, and the relevant parties to constitute all the
material terms to discuss. Jack's offer to Peter was therefore valid and met all the requirements for a
legally effective offer. The offer was made with the serious intention to create legally enforceable
obligations, which is the essence of animo contrahendi.³
¹ Hutchison D, Pretorius CJ, De Stadler E, Du Plessis J, Eiselen S, Floyd T, Hawthorne L, Kuschke B, Maxwell C & Naude T The Law of
Contract in South Africa 4th ed (Oxford University Press 2022) 3-4.
² PVL3702 Study Guide, Law of Contract (University of South Africa) 30-31.
³ Hutchison et al (n 1) 18.
1. Jack hosts a party at his home which Peter attends. At the party, Peter admires Jack’s
collection of paintings. Jack makes a legally valid offer to sell Peter an original painting of Table
Mountain for R600 000. The next day Peter meets his friend Themba, and he informs him of
Jack’s offer. A few days later Themba also views the same painting, and thereafter Peter and
Themba inform Jack that they want to purchase it together, and will pay R300 000 each to Jack
for his original painting of Table Mountain. Jack needs to think about it and requests seven (7)
days to revert to Peter and Themba, who agree to this. It is only after ten (10) days lapse that
Jack informs Peter and Themba that he agrees to sell his original painting of Table Mountain to
them for R600 000, which they can pay in equal amounts. Peter and Themba decide not to
proceed with the purchase of the painting, and they inform Jack accordingly. Advise Jack if at
any stage a valid contract (or contracts) was (or were) concluded in this scenario based on an
offer and acceptance analysis. Assume that during all communications, the parties considered
Jack’s painting of Table Mountain, the purchase price, and the relevant parties, to constitute all
the material terms to discuss. Refer to case law in your answer. For this question, do not discuss
the direct reliance theory and the iustus error doctrine. And do not discuss an agreement to
agree or an agreement to negotiate. Also do not not apply the Consumer Protection Act 68 of
2008.
ADVICE TO JACK: VALID CONTRACT ANALYSIS
1. INTRODUCTION
The central legal question in this scenario is whether a valid contract was concluded between Jack
and Peter and Themba based on an offer and acceptance analysis. The facts present a progression
from an initial offer, through a counter-offer, to a late acceptance. This analysis will examine each
stage of the process to determine whether a legally binding contract or contracts was formed at any
point. The rules of offer and acceptance constitute a useful analytical tool for determining when and
where consensus has been reached between contracting parties. However, it must be remembered
that offer and acceptance is merely an analytical tool and the primary basis of contract is consensus.¹
The offer and acceptance analysis is particularly relevant to this scenario because the parties were
negotiating at a distance and the communications between them raise questions about when a
binding agreement was formed.
2. JACK'S ORIGINAL OFFER TO PETER
Jack made a legally valid offer to sell Peter an original painting of Table Mountain for R600,000. For
an offer to be valid, it must be firm, complete, and sufficiently clear and certain.² The facts state that
the parties considered the painting, the purchase price, and the relevant parties to constitute all the
material terms to discuss. Jack's offer to Peter was therefore valid and met all the requirements for a
legally effective offer. The offer was made with the serious intention to create legally enforceable
obligations, which is the essence of animo contrahendi.³
¹ Hutchison D, Pretorius CJ, De Stadler E, Du Plessis J, Eiselen S, Floyd T, Hawthorne L, Kuschke B, Maxwell C & Naude T The Law of
Contract in South Africa 4th ed (Oxford University Press 2022) 3-4.
² PVL3702 Study Guide, Law of Contract (University of South Africa) 30-31.
³ Hutchison et al (n 1) 18.
