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SELLING” memos for the year 2024.
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PVL3702
Law of Contract
PORTFOLIO
The
MEMO - MAY/JUNE 2025
SEMESTER 1 – 2025 - UNISA
UNIQUE NUMBER: -
DUE DATE: - 22 MAY 2025
Footnotes/Bibliography included
PORTFOLIO PREVIEW
QUESTION 1
The Will Theory reflects a subjective approach to the formation of a contract, which is based solely on
consensus. For a valid contract to be concluded with reference to this theory, there should be
evidence of ‘subjective consensus’ between all the parties. One element of subjective consensus is
that the parties must seriously intend to contract. Briefly explain the other elements of ‘subjective
consensus’. Do not discuss the requirements for a valid offer and a valid acceptance for this question.
[10]
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,QUESTION 1
The Will Theory reflects a subjective approach to the formation of a contract, which
is based solely on consensus. For a valid contract to be concluded with reference
to this theory, there should be evidence of ‘subjective consensus’ between all the
parties. One element of subjective consensus is that the parties must seriously
intend to contract. Briefly explain the other elements of ‘subjective consensus’. Do
not discuss the requirements for a valid offer and a valid acceptance for this
question. [10]
QUESTION 2
Discuss ‘common mistake’ in the law of contract and refer to case law. [10]
QUESTION 3
Mia is interested in purchasing John’s Volvo car, which is a 2023 model. This Volvo
is a modern version of a fully electric car which is powered by a battery, and it does
not operate on petrol or diesel. Mia is impressed with the car and feels that she will
definitely save on fuel costs; so, she concludes a contract of sale for the Volvo with
John. The purchase price paid to John is R500 000. After receiving this payment,
the car is registered in Mia’s name. During the negotiations, prior to concluding the
contract of sale, Mia asked John how many kilometers the Volvo could travel if the
battery is fully charged, as this was very important to her. John responded that the
car would travel for a minimum of 1500 kilometers before the battery would need
to be re-charged. However, John knew that the car could only travel for 700
kilometers on a fully charged battery, but he deliberately misled Mia in order to get
a better price for the Volvo. After driving the car for a period of two months, Mia
realises that the car can only travel for a maximum of 700 kilometers on a full
, charge. After making enquiries with Volvo South Africa, she learns that her findings
are correct. Assume that John’s representation that the car could travel for 1500
kilometers when the battery is fully charged is not a term of the contract between
the parties. The market value of the car is R375 000. Had Mia known that the
performance of the battery cannot exceed 700 kilometers when fully charged, she
would still have purchased the car, but would only have been prepared to pay R400
000. Advise Mia fully on the type of misrepresentation that she can rely on and,
based on this cause of action, what amount of damages (if any) can she claim from
John. Assume that none of the parties made a material mistake. Do not apply the
direct reliance theory or the iustus error doctrine to this question. Do not discuss
latent defects or breach of contract, instead your main focus must be on the pre-
contractual representation that John made to Mia. Also, do not apply the Consumer
Protection Act 68 of 2008 to this question. [20]
QUESTION 4
X owns a hardware business which sells paint. Y is employed at X’s hardware
store. Z approaches Y and asks him to persuade X to buy Z’s paint products in bulk.
The quality of the paint that Z produces is not of the best quality, but Z knows
because of the close relationship that Y has with X, Y will be able to persuade X to
conclude a contract with Z. Z agrees to pay Y a reward of R50 000 if the contract is
concluded between X and Z. Y agrees to this arrangement and succeeds in
persuading X to conclude a contract with Z to purchase Z’s paint products for the
sum of R900 000. Y knew that the quality of the paint produced by Z is of an inferior
quality.
4.1 After X concluded the contract with Z, X learns of the arrangement Y and Z had.
He approaches you for legal advice because he wants to cancel the contract, he
concluded with Z. Advise X fully on the appropriate cause of action that can be
relied on, and if a suitable remedy is available to him in such a situation. Refer to