PVL3701 ASSIGNMENT 1 STUDY GUIDE 2026
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EXPLANATIONS || 100% GUARANTEED
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PVL3701 Law of Contract - Fundamental Principles
1. What is the primary source of South African contract law?
A. Legislation passed by Parliament.
B. Judicial precedent (case law).
C. The Constitution of the Republic of South Africa.
D. Indigenous law.
B. Judicial precedent (case law).
Explanation: While the Constitution is the supreme law and legislation is
important, the core principles of the South African law of contract are not codified
in a single statute. They have been developed over centuries through decisions of
the courts (common law).
2. The principle that allows a court to enforce a promise made without
payment is known as:
A. Pacta sunt servanda
B. Stipulatio alteri
C. Justa causa
D. Culpa in contrahendo
A. Pacta sunt servanda
Explanation: This Latin term means "agreements must be kept." It is the
foundational principle that binding agreements, once properly formed, should be
honoured and can be enforced by law.
3. Which of the following is NOT a requirement for a valid contract?
A. Consensus
B. Consideration
C. Legality
D. Possibility of performance
, B. Consideration
Explanation: South African law does not require consideration (something of value
exchanged) for a contract to be valid. A bare promise (nudum pactum) can be
binding if all other requirements, like offer and acceptance, are met. Consideration
is a key requirement in English law.
4. An agreement between parties is reached when there is a meeting of minds.
This is known as:
A. Consensus ad idem
B. Objectivity theory
C. Quasi-mutual assent
D. Unjust enrichment
A. Consensus ad idem
Explanation: This Latin phrase translates to "agreement to the same thing" and
refers to the subjective meeting of the minds between the parties.
5. In determining whether consensus was reached, South African courts
primarily use:
A. The subjective theory
B. The objective theory
C. A combination of subjective and objective theories
D. The declaratory theory
B. The objective theory
Explanation: While the ideal is a subjective meeting of minds, the court cannot
look into a person's head. It therefore uses an objective test: whether a reasonable
person in the position of the other party would have believed that consensus had
been reached based on the words and conduct of the parties.
Offer and Acceptance
6. An offer is:
A. A statement of intention to open negotiations.
B. A definite promise to be bound, made with the intention that it becomes binding
upon acceptance.
C. An invitation to the public to make an offer.
D. The final agreement between parties.
COMPLETE ANSWERS AND
EXPLANATIONS || 100% GUARANTEED
PASS <RECENT VERSION>
PVL3701 Law of Contract - Fundamental Principles
1. What is the primary source of South African contract law?
A. Legislation passed by Parliament.
B. Judicial precedent (case law).
C. The Constitution of the Republic of South Africa.
D. Indigenous law.
B. Judicial precedent (case law).
Explanation: While the Constitution is the supreme law and legislation is
important, the core principles of the South African law of contract are not codified
in a single statute. They have been developed over centuries through decisions of
the courts (common law).
2. The principle that allows a court to enforce a promise made without
payment is known as:
A. Pacta sunt servanda
B. Stipulatio alteri
C. Justa causa
D. Culpa in contrahendo
A. Pacta sunt servanda
Explanation: This Latin term means "agreements must be kept." It is the
foundational principle that binding agreements, once properly formed, should be
honoured and can be enforced by law.
3. Which of the following is NOT a requirement for a valid contract?
A. Consensus
B. Consideration
C. Legality
D. Possibility of performance
, B. Consideration
Explanation: South African law does not require consideration (something of value
exchanged) for a contract to be valid. A bare promise (nudum pactum) can be
binding if all other requirements, like offer and acceptance, are met. Consideration
is a key requirement in English law.
4. An agreement between parties is reached when there is a meeting of minds.
This is known as:
A. Consensus ad idem
B. Objectivity theory
C. Quasi-mutual assent
D. Unjust enrichment
A. Consensus ad idem
Explanation: This Latin phrase translates to "agreement to the same thing" and
refers to the subjective meeting of the minds between the parties.
5. In determining whether consensus was reached, South African courts
primarily use:
A. The subjective theory
B. The objective theory
C. A combination of subjective and objective theories
D. The declaratory theory
B. The objective theory
Explanation: While the ideal is a subjective meeting of minds, the court cannot
look into a person's head. It therefore uses an objective test: whether a reasonable
person in the position of the other party would have believed that consensus had
been reached based on the words and conduct of the parties.
Offer and Acceptance
6. An offer is:
A. A statement of intention to open negotiations.
B. A definite promise to be bound, made with the intention that it becomes binding
upon acceptance.
C. An invitation to the public to make an offer.
D. The final agreement between parties.
