PVL3702 May/June 2022 Guidelines and Answers
QUESTION 1
State and briefly discuss any five (5) requirements for the formation of a valid
contract. [10]
1. There must be agreement (consensus) or ostensible agreement between the
parties.
2. The parties must have capacity to act.
3. The performance must be possible at the time the contract is entered into.
4. The conclusion of the contract, the performance and the object of the
contracting parties must be lawful (the contract must in other words be legal).
5. Constitutive formalities must be complied with.
QUESTION 2
A robbery occurred over the weekend at ABC Furniture Stores in a small town.
At the time of the robbery, X who was an innocent bystander watched the
robbery and also noticed the motor vehicle that was used by the robbers. The
next day, ABC Furniture Stores which is a well known registered company, with
many stores operating nationally, offers a reward of R50 000 in the local
newspapers in the town, to anyone who provides information to the police which
leads to the arrest of the robbers. X is not aware of the reward offered when he
visits the police and informs them of all the information he remembered from
watching the robbery. The police then use this material and valuable information
to arrest the robbers. After the arrests are made by the police, X learns of the
reward that was offered and he then claims the reward from ABC Furniture
Stores but the company refuses to pay him. The robbers who were arrested are
subsequently successfully prosecuted and convicted for the crime committed.
Advise X fully about the prospects of success for instituting a legal claim
QUESTION 1
State and briefly discuss any five (5) requirements for the formation of a valid
contract. [10]
1. There must be agreement (consensus) or ostensible agreement between the
parties.
2. The parties must have capacity to act.
3. The performance must be possible at the time the contract is entered into.
4. The conclusion of the contract, the performance and the object of the
contracting parties must be lawful (the contract must in other words be legal).
5. Constitutive formalities must be complied with.
QUESTION 2
A robbery occurred over the weekend at ABC Furniture Stores in a small town.
At the time of the robbery, X who was an innocent bystander watched the
robbery and also noticed the motor vehicle that was used by the robbers. The
next day, ABC Furniture Stores which is a well known registered company, with
many stores operating nationally, offers a reward of R50 000 in the local
newspapers in the town, to anyone who provides information to the police which
leads to the arrest of the robbers. X is not aware of the reward offered when he
visits the police and informs them of all the information he remembered from
watching the robbery. The police then use this material and valuable information
to arrest the robbers. After the arrests are made by the police, X learns of the
reward that was offered and he then claims the reward from ABC Furniture
Stores but the company refuses to pay him. The robbers who were arrested are
subsequently successfully prosecuted and convicted for the crime committed.
Advise X fully about the prospects of success for instituting a legal claim
