Law of Contract
PVL3702
Semester 1 and 2
Department of Private Law
Assignment 1
Due date
15 May 2021
Student: Mr. Gilbert Chauke
Student no: 32321279
, QUESTION 1
X is one of ten people interviewed for a job which requires specialist skills and
expertise, at company Y. All ten candidates were very keen to be employed at
company Y, and at their job interviews for this position, they all signed a document
titled “Offer of Employment”, which included the terms of employment proposed.
Subsequently, X received a “Letter of Acceptance “signed by the relevant authorised
representative of company Y, informing her (X) that she is the successful candidate,
and congratulating her on her appointment. X was also informed in this acceptance
letter, that all the terms included in the “Offer of Employment” document which X
signed, will apply to her employment with company Y. Based on this letter of
acceptance, X then resigned from her employment in Durban, in order to take up her
new position at company Y, in Johannesburg. She also then sold her house in Durban
and made arrangements to have her furniture moved to her new home in
Johannesburg. However, to her surprise, X thereafter received an apology letter from
company Y, stating that the letter of acceptance was sent to her by mistake, and that
it was intended to be sent to another person who was interviewed by the selection
committee, as that person had the necessary skills and expertise required for the
position. Company Y is of the view that because it made an administrative error and
mistakenly sent the acceptance letter to X, a legally binding contract was not
concluded between the parties.
Advise X fully, whether an enforceable contract was concluded between her (X)
and company Y. Apply the indirect approach of the courts and refer to relevant
case law in your answer. Do not apply the Consumer Protection Act 68 of 2008
to this question. And also do not apply any Labour Law principles to this
question.
ANSWER
An enforceable agreement was concluded, based on the application of the doctrine of
quasi-mutual assent. The general rule is that a contract comes into being only when
the acceptance is communicated to the mind of the offeror. The information theory,
which is the general rule in our law, states that the agreement is concluded when and
where the offeror learns or is informed of the acceptance – in other words, when the
PVL3702
Semester 1 and 2
Department of Private Law
Assignment 1
Due date
15 May 2021
Student: Mr. Gilbert Chauke
Student no: 32321279
, QUESTION 1
X is one of ten people interviewed for a job which requires specialist skills and
expertise, at company Y. All ten candidates were very keen to be employed at
company Y, and at their job interviews for this position, they all signed a document
titled “Offer of Employment”, which included the terms of employment proposed.
Subsequently, X received a “Letter of Acceptance “signed by the relevant authorised
representative of company Y, informing her (X) that she is the successful candidate,
and congratulating her on her appointment. X was also informed in this acceptance
letter, that all the terms included in the “Offer of Employment” document which X
signed, will apply to her employment with company Y. Based on this letter of
acceptance, X then resigned from her employment in Durban, in order to take up her
new position at company Y, in Johannesburg. She also then sold her house in Durban
and made arrangements to have her furniture moved to her new home in
Johannesburg. However, to her surprise, X thereafter received an apology letter from
company Y, stating that the letter of acceptance was sent to her by mistake, and that
it was intended to be sent to another person who was interviewed by the selection
committee, as that person had the necessary skills and expertise required for the
position. Company Y is of the view that because it made an administrative error and
mistakenly sent the acceptance letter to X, a legally binding contract was not
concluded between the parties.
Advise X fully, whether an enforceable contract was concluded between her (X)
and company Y. Apply the indirect approach of the courts and refer to relevant
case law in your answer. Do not apply the Consumer Protection Act 68 of 2008
to this question. And also do not apply any Labour Law principles to this
question.
ANSWER
An enforceable agreement was concluded, based on the application of the doctrine of
quasi-mutual assent. The general rule is that a contract comes into being only when
the acceptance is communicated to the mind of the offeror. The information theory,
which is the general rule in our law, states that the agreement is concluded when and
where the offeror learns or is informed of the acceptance – in other words, when the
