Chapter 2

• what is an offer 


  an offer is a proposal made by one party to another party, indicating their intention to enter into a contract, the actions they are willing to perform, and the terms under which they will do so
• what are the elements of an offer?

  intent to contract

  communication

  specificity

  definiteness
• what are the types of offers?

  individual offers

  group offers

  public offers
• what is a contract based on?


  agreement and juristic act
• an offer, being a unilateral declaration, doesnt create binding obligations initially
• the offer allows the offeree to accept unilaterally, bringing the contract into existence
• when can the offeror withdraw the offer


  the offeror can withdraw the offer before acceptance unless bound by a separate agreement not to do so, known as an option
• what are the requirements for a valid offer

  the offer must be firm

  the offer must be complete

  the offer must be clear and certain

  the consumer protection act
• what are the 4 types of offers to the public

  advertisements

  promises of reward

  calls for tenders

  auctions
• what are the circumstances that terminate an offer?

  offer rejection

  death of either party

  Effluxion of the prescribed time, or of a reasonable time

  Revocation of the offer

  Loss of legal capacity to act

  acceptance of offer
• what is acceptance?

  • acceptance is a clear and unambiguous agreement by the offeree to all terms of the offer
  • can be expressed explicitly or implied through actions, but not through silence
  • unsolicited goods sent with a condition of silence do not constitute an acceptance
• what are the requirements for a valid acceptance?

  the acceptance must be unqualified

  the acceptance must be by the person whom the person was made

  conscious acceptance

  acceptance form
• Where and where does acceptance take place

  1. Contracts are formed when an offer is accepted

  2. In direct contracts (inter praesentes), acceptance is immediate and clear

  3. In remote contracts (inter absentes), there's a delay between acceptance declaration and its confirmation
• Timing of acceptance

  • Matters for legal issues like revocations, deadlines, and jurisdiction
• Historically, postal contracts had delays; now, faster communication methods pose new legal questions
• Theories on acceptance timing

  • Declaration theory
  • Expedition theory
  • Reception theory
  • Information theory
• Contract

  An agreement intended to create enforceable obligations

  
• Obligation


  A legal duty to perform or refrain from performing a certain act
• Contract

  Delict
• Development of the modern notion of contract

  • Roman law
  • Roman-Dutch law
  • Causa and consideration: a celebrated dispute

  
• Theories of contract

  • Actual subjective agreement (consensus)
  • Apparent or objective agreement

  
• Cornerstones of contract

  • The goals of contract law
  • Competing values in the law of contract
  • Freedom and sanctity of contract
  • Good faith, equity and public policy in contract

  
• Consumer Protection Act 68 of 2008

  Legislation that impacts contract law
• Constitution

  Impacts the law of contract

  
• Offer


  A proposal to enter into a contract on specified terms, made with the intention that it shall become binding as soon as it is accepted
• Requirements for a valid offer

  • The offer must be firm
  • The offer must be complete
  • The offer must be clear and certain
• Offers to the public

  • Advertisements
  • Promises of reward
  • Calls for tenders
  • Auctions
• Termination of an offer

  • Rejection of the offer
  • Death of either party
  • Effluxion of the prescribed time, or of a reasonable time
  • Revocation of the offer
  • Loss of legal capacity to act
  • Acceptance of offer
• Requirements for a valid acceptance

  • The acceptance must be unqualified
  • The acceptance must be by the person to whom the offer was made
  • The acceptance must be a conscious response to the offer
  • The acceptance must be in the form prescribed by the offeror (if any)
• When and where acceptance takes effect

  • The information theory as the general rule in our law
  • Exceptions to the general rule
  • Where the offeror stipulates a different method of acceptance
  • Postal contracts: the expedition theory applies
  • The scope of the exception
  • Criticism of the expedition theory
  • Revocation or neutralisation of the posted acceptance
  • Electronic contracts: the reception theory applies
• Breaking off negotiations

  Ending negotiations before a contract is formed
• Pacta de contrahendo

  Agreements to enter into a contract in the future
• Types of pacta de contrahendo

  • Options
  • Preference contracts

  
• Juristic nature of an option

  • Unilateral declaration that the offer is irrevocable
  • Legal effect of an option
  • Duration of the option
  • Transferability of an option
  • Formalities: options to buy or sell land
  • Remedies for breach of an option
• Right of pre-emption

  • Right of pre-emption compared with an option
  • The obligations of the grantor
  • The trigger event in a pre-emption agreement
  • The offer must be a bona fide one
  • Duration of the offer
  • Remedies for breach
• Classification of mistake

  • Unilateral, mutual and common mistake
  • Irrelevant and relevant mistake
  • Material and non-material mistake
  • Mistake of law and mistake of fact
• Will theory


  The subjective approach to contract formation based on the actual intentions of the parties

  
• Reliance-based correctives


  Objective approaches to contract formation based on the reasonable expectations of the parties

  
• Estoppel


  A doctrine that prevents a party from denying the truth of a representation they have made, where the other party has relied on that representation
• Quasi-mutual assent


  A doctrine that binds parties to a contract where one party has reasonably relied on the other's conduct