A) Formulate a legal opinion for Shane wherein you specifically advise him only about the issues
relating to the prescribed mode of acceptance, and if the mode of acceptance was not complied
with, whether a valid contract of sale was concluded between the parties. Assume that when
Shane signed the ‘Çontract of Sale’ document, it constituted a valid offer, and further assume
that the only contentious and relevant issue pertaining to the acceptance, relates to the mode of
acceptance. Do not discuss the issue of waiver and do not discuss breach of contract. Also, do not
apply the Consumer Protection Act 68 of 2008.
Legal Opinion on the Validity of the Contract of Sale for Shane's Porsche
To: Shane
From: Legal Advisor
Date: [Current Date]
Subject: Analysis of Contract Validity – Prescribed Mode of Acceptance
Dear Shane,
You have sought legal advice regarding the validity of your contract of sale for the limited-edition
Porsche, specifically concerning the seller's representative's failure to sign the 'Contract of Sale'
document and the attorney's assertion that the prescribed mode of acceptance was not complied with.
This opinion will focus exclusively on the issue of the prescribed mode of acceptance and its impact
on contract formation, assuming your signing of the document constituted a valid offer and that this
is the only contentious issue regarding acceptance.
1. General Principles of Contract Formation and Acceptance
A contract is generally formed when parties reach agreement on all material terms, typically
analyzed through the rules of offer and acceptance. In your case, it is assumed that when you signed
the 'Contract of Sale' document, this constituted your valid offer to purchase the limited-edition
Porsche. This means the dealership (Porsche Johannesburg) was the offeree, and their acceptance
was required to form the contract.
For an acceptance to be valid, it must meet certain requirements, including being in the form
prescribed by the offeror (if any). As the offeror, you are entitled to prescribe the method of
acceptance, and generally, no other form will suffice if a specific method is stipulated. The 'Contract
of Sale' document "catered for the seller or its representative to sign", which suggests that the seller's
signature was the intended or prescribed mode of acceptance. The seller's attorney argues that
because their representative did not sign the document, the "mode of acceptance was not complied
with," leading to the conclusion that no valid contract was concluded1.
2. The Reliance Theory as a Corrective to Non-Compliance with Prescribed Mode of
Acceptance
While strict adherence to a prescribed mode of acceptance is generally required, South African law
recognizes instances where a contract may still be upheld despite a lack of actual subjective
agreement (consensus), by applying the reliance theory. This theory, also known as quasi-mutual
assent, provides that contractual liability may arise when one party leads the other into a reasonable
belief that consensus has been reached, or that a prescribed form of acceptance has been complied
with.
1. Hutchison et al., 2022:p87