PVL 3702
2
0
2
3
EXAM
REVISION
PACK
, 2023 LATEST UPDATED
PVL 3702 EXAM REVISION PACK
INCLUDES :
LAW ➢PAST EXAM MEMOS
➢ADD Q & A
➢ASSIGNMENTS SOLUTIONS
OF ➢SUMMARISED NOTES
(Oct/Nov 22” Exam Included)
CONTRACT
LATEST EXAM PACK
“JUST UPDATED”
,EXAM
REVISION PACK
QUESTIONS
AND
ANSWERS
, PLV3702 – 2022 -OCT/NOV EXAM
QUESTION 1
State the requirements for a valid offer and a valid acceptance. Do not discuss these
requirements. And in your answer do not make any reference to the Consumer Protection
Act 68 of 2008.
[10]
1.1 The offer must be firm
The offer must be a firm one, made animo contrahendi – that is to say, with the intention that its
acceptance will call into being a binding contract. This requirement is not fulfilled if one of the
parties makes a tentative statement to the other with the intention of sounding the other out in
order to find out whether he or she would be prepared to enter into negotiations (Efroiken v Simon
1921 CPD 367). Whether a particular declaration amounts to a firm offer, or is merely a tentative
indication of willingness to do business, may not always be easy to determine. It is ultimately a
question of fact to be decided in the light of all the relevant circumstances (Pitout v North Cape
Livestock Co-operative Ltd 1977 (4) SA 842 (A).
1.2 The offer must be complete (1)
The offer must contain all the material terms of the proposed agreement – there cannot be further
matters that still have to be negotiated before the overall agreement can take effect (OK Bazaars
v Bloch 1929 WLD 37; Lambons (Edms) Bpk v BMW (Suid Afrika) (Edms) Bpk 1997 (4) SA 141
(SCA)). Often, when large contracts are negotiated, various issues have to be settled before the
deal can go ahead. In such a case, it is said that ‘nothing is agreed until everything is agreed’. In
other words, the fact that the parties have reached agreement on issues A, B and C cannot give
rise to binding obligations, if issues D and E still have to be discussed, and the intention of the
parties is that there will be no binding contract until a comprehensive agreement is reached.
However, if the intention of the parties is that the preliminary agreement in respect of issues A, B
and C should be binding on them, irrespective of whether they ever reach consensus on
outstanding issues D and E, then of course the preliminary agreement will indeed constitute a
binding contract. If agreement is subsequently reached on issues D and E, the preliminary
agreement will be incorporated into and superseded by the more comprehensive agreement
(CGEE Alsthom Equipments et Enterprises Electriques, South African Division v GKN Sankey
(Pty) Ltd 1987 (1) SA 81 (A);Belmore v Minister of Finance 1948 (2) SA 852 (SR)).
1.3 The offer must be clear and certain
The offer must be sufficiently certain; it should be enough for the addressee merely to answer
‘Yes’, for a contract to come into being. If the offer is so vague that it fails to provide a reasonably
clear indication of what the offeror has in mind, no acceptance of the offer can create a binding
obligation, because it will be impossible to determine the content of that obligation.
2
0
2
3
EXAM
REVISION
PACK
, 2023 LATEST UPDATED
PVL 3702 EXAM REVISION PACK
INCLUDES :
LAW ➢PAST EXAM MEMOS
➢ADD Q & A
➢ASSIGNMENTS SOLUTIONS
OF ➢SUMMARISED NOTES
(Oct/Nov 22” Exam Included)
CONTRACT
LATEST EXAM PACK
“JUST UPDATED”
,EXAM
REVISION PACK
QUESTIONS
AND
ANSWERS
, PLV3702 – 2022 -OCT/NOV EXAM
QUESTION 1
State the requirements for a valid offer and a valid acceptance. Do not discuss these
requirements. And in your answer do not make any reference to the Consumer Protection
Act 68 of 2008.
[10]
1.1 The offer must be firm
The offer must be a firm one, made animo contrahendi – that is to say, with the intention that its
acceptance will call into being a binding contract. This requirement is not fulfilled if one of the
parties makes a tentative statement to the other with the intention of sounding the other out in
order to find out whether he or she would be prepared to enter into negotiations (Efroiken v Simon
1921 CPD 367). Whether a particular declaration amounts to a firm offer, or is merely a tentative
indication of willingness to do business, may not always be easy to determine. It is ultimately a
question of fact to be decided in the light of all the relevant circumstances (Pitout v North Cape
Livestock Co-operative Ltd 1977 (4) SA 842 (A).
1.2 The offer must be complete (1)
The offer must contain all the material terms of the proposed agreement – there cannot be further
matters that still have to be negotiated before the overall agreement can take effect (OK Bazaars
v Bloch 1929 WLD 37; Lambons (Edms) Bpk v BMW (Suid Afrika) (Edms) Bpk 1997 (4) SA 141
(SCA)). Often, when large contracts are negotiated, various issues have to be settled before the
deal can go ahead. In such a case, it is said that ‘nothing is agreed until everything is agreed’. In
other words, the fact that the parties have reached agreement on issues A, B and C cannot give
rise to binding obligations, if issues D and E still have to be discussed, and the intention of the
parties is that there will be no binding contract until a comprehensive agreement is reached.
However, if the intention of the parties is that the preliminary agreement in respect of issues A, B
and C should be binding on them, irrespective of whether they ever reach consensus on
outstanding issues D and E, then of course the preliminary agreement will indeed constitute a
binding contract. If agreement is subsequently reached on issues D and E, the preliminary
agreement will be incorporated into and superseded by the more comprehensive agreement
(CGEE Alsthom Equipments et Enterprises Electriques, South African Division v GKN Sankey
(Pty) Ltd 1987 (1) SA 81 (A);Belmore v Minister of Finance 1948 (2) SA 852 (SR)).
1.3 The offer must be clear and certain
The offer must be sufficiently certain; it should be enough for the addressee merely to answer
‘Yes’, for a contract to come into being. If the offer is so vague that it fails to provide a reasonably
clear indication of what the offeror has in mind, no acceptance of the offer can create a binding
obligation, because it will be impossible to determine the content of that obligation.
