PVL3702
The point of departure is perhaps to define what is perceived to be a contract: A contract is therefore an agreement
between private parties creating mutual obligations enforceable by law. The basic elements required for the
agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance;
adequate consideration; capacity; and legality.
Hutchson defines contract as as an agreement entered into by two or more persons with the intention of creating a
legal obligation or obligations.
Facts:
A gang of robbers attacks a van of XYZ Security in a cash-in-transit heist and made off with 3.5 million rands in
cash. XYZ Security subsequently offered a reward of R100 000 on the TV news on 10 January to anyone who
gives information to the police leading to the arrest of the robbers. H notices the offered reward. He however,
misses the withdrawal of the reward on the TV news on 14 January and therefore not aware of the revocation of the
reward. On 15 January he supplied the police with information which lead to the arrest of the robbers. Upon
receiving the news of the arrest, XYZ refused to pay H the reward.
Legal question:
Was a valid and binding contract constituted, which obligated XYZ to pay H.
The general rule in our law is said to be that an advertisement constitutes merely an invitation to do business rather
than it being an offer. A promise of reward is a form of advertisement that constitutes an offer and an acceptance of
the offer is an expression of intention by the offeree signifying his or her agreement to the offer. A contract requires
, that there should be a consensus of two minds, and if the one did not know what the other was proposing, the two
minds never came together.
For a contract to be deemed valid and binding, it must meet the following requirements,
- The minds of the parties must meet (or at least appear to meet) on all material aspects of their
agreement.
- The parties must have the necessary capacity to contract.
- Where the agreement is required, unusually, to be in a certain form, the formalities must be
observed.
- The agreement must be lawful.
- The obligations undertaken must be capable of performance when the agreement is entered into
and
- The agreement must have a definite or determinable content, so that the obligations can be
ascertained and enforced.
For an acceptance to be valid, it must be unconditional and unequivocal, consciously accepted by the person to
whom it was addressed; and compliant with any formalities set by law or by the offeror.
A valid offer must be firm, complete and clear and certain.
Acceptance on the other hand must be unqualified, it must be by the person to whom the offer was made, must be a conscious
response to the offer and it must be in the form prescribed by the offeror.
Termination of an offer
It is common cause that XYZ advertised an offer to the public at large offering a reward to anyone who can give to
the police information that can lead to the arrest of the robbers. And, if any member of the public had accepted the
The point of departure is perhaps to define what is perceived to be a contract: A contract is therefore an agreement
between private parties creating mutual obligations enforceable by law. The basic elements required for the
agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance;
adequate consideration; capacity; and legality.
Hutchson defines contract as as an agreement entered into by two or more persons with the intention of creating a
legal obligation or obligations.
Facts:
A gang of robbers attacks a van of XYZ Security in a cash-in-transit heist and made off with 3.5 million rands in
cash. XYZ Security subsequently offered a reward of R100 000 on the TV news on 10 January to anyone who
gives information to the police leading to the arrest of the robbers. H notices the offered reward. He however,
misses the withdrawal of the reward on the TV news on 14 January and therefore not aware of the revocation of the
reward. On 15 January he supplied the police with information which lead to the arrest of the robbers. Upon
receiving the news of the arrest, XYZ refused to pay H the reward.
Legal question:
Was a valid and binding contract constituted, which obligated XYZ to pay H.
The general rule in our law is said to be that an advertisement constitutes merely an invitation to do business rather
than it being an offer. A promise of reward is a form of advertisement that constitutes an offer and an acceptance of
the offer is an expression of intention by the offeree signifying his or her agreement to the offer. A contract requires
, that there should be a consensus of two minds, and if the one did not know what the other was proposing, the two
minds never came together.
For a contract to be deemed valid and binding, it must meet the following requirements,
- The minds of the parties must meet (or at least appear to meet) on all material aspects of their
agreement.
- The parties must have the necessary capacity to contract.
- Where the agreement is required, unusually, to be in a certain form, the formalities must be
observed.
- The agreement must be lawful.
- The obligations undertaken must be capable of performance when the agreement is entered into
and
- The agreement must have a definite or determinable content, so that the obligations can be
ascertained and enforced.
For an acceptance to be valid, it must be unconditional and unequivocal, consciously accepted by the person to
whom it was addressed; and compliant with any formalities set by law or by the offeror.
A valid offer must be firm, complete and clear and certain.
Acceptance on the other hand must be unqualified, it must be by the person to whom the offer was made, must be a conscious
response to the offer and it must be in the form prescribed by the offeror.
Termination of an offer
It is common cause that XYZ advertised an offer to the public at large offering a reward to anyone who can give to
the police information that can lead to the arrest of the robbers. And, if any member of the public had accepted the
