PVL3702_2022_Sem1_Assign2_Answers.

PVL3702_2022
_SEM1_ASSIG
N2_ANSWERS.

, PVL3702 Assignment 2 Answers (2022 Semester 1)

There are 10 questions for this assignment. Each question below carries 2
marks and the total for the assignment is 20 marks.



Question 1

Y and Z reach an agreement that should Y sell his leather couch, he (Y) will offer to
sell it to Z first, before making an offer to sell the couch to any other person. Which
statement is CORRECT?

a. Y and Z concluded an option contract.
b. Y and Z concluded a pre-emption contract.
c. Y and Z concluded neither an option contract nor a pre-emption contract.
d. Y and Z concluded an option contract and a pre-emption contract.
e. Y and Z concluded a contract subject to a resolutive condition.



Answer


b.


Discussion
An option is a contract to keep an offer open for acceptance for a certain period of time
(Eiselen GTS et al Law of Contract study guide for PVL 3702 (University of South
Africa) 29. Clearly Y and Z did not conclude such an agreement relating to the leather
couch. Therefore options (a) and (d) are incorrect.


A resolutive condition is present where the parties agree that their contractual
obligations will operate fully, but that it will come to an end if an uncertain future event
does or does not happen. See Hutchison & Pretorius (eds) The Law of Contract in
South Africa 3rd ed (Oxford Cape Town 2017) 260. There is no resolutive condition in
the agreement between Y and Z, relating to any uncertain event which may bring an
end to their agreement. Although it is uncertain whether Y will decide to sell the leather