PVL3702 Assignment 1 Semester 1 2023

PVL3702 Assignment 1 Semester 1 & 2 2023 S - The study-notes marketplace QUESTION 1 Advise X fully, whether an enforceable contract was 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 form