PVL3702
Assignment 1
Semester 1 & 2
2022
Stuvia.com - The study-notes marketplace
QUESTION 1
Advise X fully, whether an enforceable contract was
... [Show More] concluded between her (X) and company Y. Apply
the indirect approach of the courts and refer to relevant case law in your answer. Do not apply the
Consumer Protection Act 68 of 2008 to this question.
An enforceable agreement was concluded, based on the application of the doctrine of quasi-mutual assent.
The general rule is that a contract comes into being only when the acceptance is communicated to the mind of
the offeror. The information theory, which is the general rule in our law, states that the agreement is concluded
when and where the offeror learns or is informed of the acceptance – in other words, when the offeror reads the
letter of acceptance1
.
The following are the requirements for a valid contract to have come into being:
1. There must be a consensus in the minds of both parties on the material aspects of the agreement in
question2
. In this case both X and Y agreed to the terms of the contract. Y agreed to the terms of the
contract by posting his letter of acceptance to X.
2. Both parties must have the capacity required to contract. From the facts in the case Y have the capacity
to enter into a contract of employment since a “Letter of Acceptance” signed by the relevant authorised
representative of company Y. X appear to have contractual capacity.
3. If the agreement is required to be in a specific form, these formalities must be met3
. Y posted a Letter of
Acceptance, signed by the relevant authorised representative, to X which represented an offer to enter
into the contract of employment. When X agreed to the terms of the contract, signed a document titled
“Offer of Employment”. Thus, all formalities was adhered to.
4. The agreement must not be unlawful or prohibited for any reason4
. There is no indication that the
contract between X and Y is prohibited by any law.
5. It must be practically possible for the parties to the contract to be able to fulfill the obligations they
undertake to perform5
. It appears that both X and Y are capab [Show Less]