Assignment 1
DUE 26 August 2025
, Law of Contract
LEGAL OPINION
To: Shane
Subject: Legal Validity of the Sale Agreement – Requirement of Specific Mode of
Acceptance
Background
You have requested a legal assessment concerning whether a valid and binding sale
agreement was concluded between yourself and Porsche Johannesburg. Your specific
concern is the dealership’s contention that no valid contract exists due to the absence of
a signature from their authorised representative. The question arises as to whether this
omission invalidates the agreement, notwithstanding that all the material terms were
mutually agreed upon.
Legal Issue
The central issue is whether a legally enforceable contract exists despite the seller not
having signed the contract in the designated signature area. The matter turns on
whether the signature was intended as the exclusive method of acceptance or merely a
procedural requirement for internal dealership formalities.
Relevant Legal Principles
South African contract law stipulates that for an offer to result in a binding contract, the
acceptance must comply with any express conditions imposed by the offeror. If the offer
expressly requires a specific method of acceptance—such as a signature—then that
mode generally must be adhered to.
Nonetheless, both judicial precedent and legal scholarship emphasise that the broader
context, including the intention of the parties and the overall commercial circumstances,
must be considered in determining whether a contract has been validly concluded.