Acceptance
Define "acceptance" in contract law.
Acceptance is an affirmative reply of the offeree, with the intention to create legally binding obligations, on the terms set out in the offer.
True or False: A contract concluded due to a misrepresentation is voidable.
True
"Ad idem" means_____.
Meeting of the minds
Name one of requirements for a valid contract
Legality / Formalities / Contractual capacity / Consensus / Possibility
Which theory applies when acceptance is sent by post?
Expedition Theory
Distinguish between misrepresentation and mistake.
Misrepresentation involves a false statement by one party inducing the contract; mistake involves a misunderstanding of facts by one or both parties without necessarily a false statement.
Distinguish between an essential mistake and a mistake in motive, and explain their different legal effects.
An essential mistake (about subject matter or nature of contract) renders the contract invalid; a mistake in motive generally does not affect validity.
Define animus contrahendi and explain why it is essential for a valid contract.
It is the intention to be legally bound. Without it, agreements are mere social arrangements, not enforceable contracts.
What is the general rule for when acceptance takes place?
Information Theory
What is duress and what is its effect on a contract?
Duress is forcing someone to contract through threat or harm; it makes the contract voidable because free will is compromised.
Explain the difference between error in negotio and error in corpore, and discuss how each affects the validity of a contract.
Error in negotio = mistake about the nature/terms of the contract; Error in corpore = mistake about the object of performance. Both are essential mistakes and render the contract invalid.
Provide two ways in which an offer can be terminated.
Withdrawal before acceptance, rejection, counter-offer, lapse of time, death of either party.
A hotel emails a client: “We offer accommodation at R10,000 for the weekend. Valid until Friday 17:00.” The client sends acceptance at 16:55, but due to server delays, the email only reaches the hotel’s inbox at 17:10. Apply the Reception Theory to discuss whether a valid contract was formed.
Under Reception Theory, acceptance is valid when it enters the offeror’s system and is retrievable. Since it reached at 17:10 (after expiry), no valid contract was formed.
Lerato books a 5-star tour but receives 3-star accommodation. Discuss whether this constitutes misrepresentation or mistake, and the remedies available.
False statement about star grading = misrepresentation. Contract is voidable; Lerato may rescind and claim restitution.
Compare common mistake, unilateral mistake, and mutual mistake. Which of these mistakes can render a contract void, and why?
Common mistake = both parties share the same error; unilateral mistake = one party mistaken; mutual mistake = parties misunderstand each other. Essential mistakes (common or mutual) can void a contract due to lack of consensus.
Explain the three-step test for determining whether a ticket contract is binding.
(1) Did holder know there was writing? (2) Did holder know writing referred to terms? (3) Did issuer take reasonable steps to bring terms to attention?