CLA1503_Assignment_1_

CLA1503_Assignment_1_ 1a) According to the Alienation of Land Act 68 of 1981, no contract for the alienation of land is valid unless it is contained in a contract of alienation signed by the parties to the contract or by their agents acting on their written instructions. However, any alienation of land in contravention of the Act will be deemed to be valid if both parties have performed fully and the land has been transferred to the new owner. The formalities required by both parties (Moloko and Mamba) include the compliance of legislation relating to the contract of sale for the purchase of a piece of land. Whereby, as per the Alienation of Land Act 68 of 1981, no contract is valid for the alienation of land unless it is contained in a contract of alienation signed by the parties to the contract or their agents acting on instructions written by the principles. Thus, Moloko and Mamba need to create and complete a contract of alienation signed by both parties. Furthermore, these formalities also include the condition in which Mamba must first be granted approval for a mortgage bond by Bruto Bank. Thus, if this was an oral agreement between Moloko and Mamba and it precedes the written agreement, it must be determined from the contract whether the parties intended reduction to writing to be a requirement for validity or mere proof of their oral contract. If writing is a requirement for the validity of the contract, the ‘contract’ remains invalid until it is put in writing in the contract between Moloko and Mamba. 7.3.2 Formalities required by the parties Apart from the instances where the legislature requires compliance with certain formalities to create a valid contract, it sometimes happens that the contracting parties themselves prescribe formalities. If the offeror sets the requirement that acceptance of the offer must be in writing, acceptance of the offer will result in a valid contract only if the acceptance is in writing. Parties sometimes negotiate the contents of their contract orally and agree that the final agreement will be in writing. If an oral agreement precedes the written agreement, it must be determined from the contract whether the parties intended reduction to writing to be a requirement for validity or mere proof of their oral contract. If writing is a requirement for the validity of the contract, the ‘contract’ remains invalid until it is put in writing. Conversely, if the parties merely intended the written agreement to ease the proof of the oral agreement’s terms, the oral contract becomes binding immediately upon conclusion, even though nothing has been put in writing. 7.3.3 Writing and signing of electronic transactions As noted above, the most commonly prescribed formalities are those requiring the writing and signing of certain agreements. As more agreements are being concluded electronically, the Electronic Communications and Transactions Act 25 of 2002 (ECTA) provides that data messages (electronic messages) are recognised as writing if the document or information is accessible for future use, except in respect of transactions concluded under the following Acts