PVL3702
Assignment 1
Semester 1 2023
Unique number: 618220
ASSIGNMENT 01 QUESTION:
Carol, an owner of an exclusive bicycle shop advertised a special limited-edition
bicycle for sale, and invited the public to make offers for the bicycle. Jane and
Portia were among many people who submitted written offers for the bicycle.
Jane’s offer was for R150 000, and Portia’s offer was for R190 000. Although
Carol intended to accept Portia’s offer, she erroneously wrote a letter to Jane,
wherein she accepted Jane’s offer. Jane believes that an enforceable contract
was formed but Carol denies this. Apply the direct reliance theory and advise if
a legally binding contract was concluded between Carol and Jane. Discuss fully
and refer to case law in your answer. Do not apply the Consumer Protection Act
68 of 2008. [20]
THE ANSWER TO THIS QUESTION IS FOUND IN CHAPTER 3 OF THE
PRESCRIBE TEXTBOOK
Identifying the problem
Carol sent the letter of acceptance to Jane by mistake as she intended to contract with
another party, Portia. The question thus deals with error in persona, mistake and the
application of the iustus error doctrine.
Assignment 1
Semester 1 2023
Unique number: 618220
ASSIGNMENT 01 QUESTION:
Carol, an owner of an exclusive bicycle shop advertised a special limited-edition
bicycle for sale, and invited the public to make offers for the bicycle. Jane and
Portia were among many people who submitted written offers for the bicycle.
Jane’s offer was for R150 000, and Portia’s offer was for R190 000. Although
Carol intended to accept Portia’s offer, she erroneously wrote a letter to Jane,
wherein she accepted Jane’s offer. Jane believes that an enforceable contract
was formed but Carol denies this. Apply the direct reliance theory and advise if
a legally binding contract was concluded between Carol and Jane. Discuss fully
and refer to case law in your answer. Do not apply the Consumer Protection Act
68 of 2008. [20]
THE ANSWER TO THIS QUESTION IS FOUND IN CHAPTER 3 OF THE
PRESCRIBE TEXTBOOK
Identifying the problem
Carol sent the letter of acceptance to Jane by mistake as she intended to contract with
another party, Portia. The question thus deals with error in persona, mistake and the
application of the iustus error doctrine.
