, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
PVL3702 ASSIGNMENT 1 SEMESTER 1
LAW OF CONTRACT
DUE DATE: MARCH 2026
The problem raises the issue of mistake (error) in the formation of a contract of sale. The central
question is whether the agreement between Jabu and Raymond is legally binding where both parties
believed the ring to be a genuine diamond, but it later emerged that the ring was artificial. The legal
inquiry turns on whether the mistake relates to a material aspect of the contract sufficient to exclude
consensus (consensus ad idem).
Under South African law, a contract requires true agreement between the parties.1 Where a mistake
prevents consensus on an essential element of the contract, no valid agreement arises. The analysis
below considers the type of mistake involved, its materiality, and whether it renders the contract
void or valid.
The Requirement of Consensus in South African Law
Consensus is the foundation of contractual liability.2 Our law follows a subjective theory of contract,
meaning that there must be a true meeting of the minds.3 However, this is tempered by the reliance
theory, which protects reasonable reliance in certain circumstances.4
Where a mistake is material and excludes true consensus, the contract is void ab initio.5 The key
question is therefore whether the mistake in this case relates to an essential element of the
agreement.
1
RH Christie and GB Bradfield, Christie’s The Law of Contract in South Africa (7th edn, LexisNexis 2016) 27
2
AJ Kerr, The Principles of the Law of Contract (6th edn, LexisNexis 2002) 1.
3
JC de Wet and AH van Wyk, Die Suid-Afrikaanse Kontraktereg en Handelsreg (5th edn, Butterworths 1992) 6.
4
Christie and Bradfield (n 1) 28.
5
Kerr (n 2) 300.
PVL3702 ASSIGNMENT 1 SEMESTER 1
LAW OF CONTRACT
DUE DATE: MARCH 2026
The problem raises the issue of mistake (error) in the formation of a contract of sale. The central
question is whether the agreement between Jabu and Raymond is legally binding where both parties
believed the ring to be a genuine diamond, but it later emerged that the ring was artificial. The legal
inquiry turns on whether the mistake relates to a material aspect of the contract sufficient to exclude
consensus (consensus ad idem).
Under South African law, a contract requires true agreement between the parties.1 Where a mistake
prevents consensus on an essential element of the contract, no valid agreement arises. The analysis
below considers the type of mistake involved, its materiality, and whether it renders the contract
void or valid.
The Requirement of Consensus in South African Law
Consensus is the foundation of contractual liability.2 Our law follows a subjective theory of contract,
meaning that there must be a true meeting of the minds.3 However, this is tempered by the reliance
theory, which protects reasonable reliance in certain circumstances.4
Where a mistake is material and excludes true consensus, the contract is void ab initio.5 The key
question is therefore whether the mistake in this case relates to an essential element of the
agreement.
1
RH Christie and GB Bradfield, Christie’s The Law of Contract in South Africa (7th edn, LexisNexis 2016) 27
2
AJ Kerr, The Principles of the Law of Contract (6th edn, LexisNexis 2002) 1.
3
JC de Wet and AH van Wyk, Die Suid-Afrikaanse Kontraktereg en Handelsreg (5th edn, Butterworths 1992) 6.
4
Christie and Bradfield (n 1) 28.
5
Kerr (n 2) 300.
