2 2026 (276320) - DUE 4 September 2026; 100% Correct
solutions and explanations.
OFFER AND ACCEPTANCE ANALYSIS: WHETHER A VALID
CONTRACT WAS CONCLUDED BETWEEN JACK, PETER AND
THEMBA
1. Introduction
A contract is formed when there is a legally binding agreement between parties.
In South African contract law, the general rule is that consensus between the
parties is required before a contract can come into existence. This consensus is
normally established through the process of offer and acceptance. An offer
constitutes a clear and definite expression by one party that they intend to be
bound if accepted, while acceptance requires an unconditional agreement to the
terms of the offer by the offeree.¹
The facts concern whether a valid contract arose between Jack, Peter and
Themba regarding the sale of Jack’s original painting of Table Mountain for
R600 000. The analysis requires consideration of whether Jack’s initial offer to
Peter remained open, whether Peter and Themba’s subsequent communication
amounted to acceptance or a new offer, and whether Jack’s delayed response
resulted in the conclusion of a contract.
The principles of offer and acceptance will be analysed with reference to the
decisions in Command Protection Services (Gauteng) (Pty) Ltd t/a Maxi
Security v South African Post Office Ltd and Legator McKenna Inc v Shea.
2. General Principles of Offer and Acceptance
An offer is a unilateral declaration by one party indicating a willingness to enter
into a contract on specified terms. For an offer to be legally effective, it must
contain sufficiently certain terms and must indicate that the offeror intends to be
bound upon acceptance.² The offer must be distinguished from preliminary
negotiations or an invitation to negotiate because only a true offer can be
accepted to create contractual liability.