PVL3702 EXAM PACK 2024/2025 {QUESTIONS AND ANSWERS }
The Law of Contract in South Africa CASE STUDIES & ANSWERED QUESTIONS
PVL3701 Assignment 1 COMPLETE ANSWERS) Semester 2 2024 - DUE 9 September 2024
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, VL3702 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024
(718515) - DUE 19 August 2024 ;100
%
. Jack is a property developer who is well known for building residential
developments. He recently built cluster homes in an upmarket suburb in Cape
Town. All the cluster homes are built with the same size and layout, and they
only differ with the positioning of each cluster in the complex. This
development is brand new, and Jack is marketing the development himself.
Jack shows Gloria a beautiful cluster home in the complex, which is next to
the guardhouse at the entrance of the complex. Gloria immediately falls in
love with this cluster home and a few days later she as the purchaser signs
the offer to purchase document presented to her by Jack, who completed all
the relevant details on the document relating to the description of the property.
The document is later also signed by Jack as the seller. However, it
subsequently turns out that the cluster home referred to in the signed
document is not the one that Gloria viewed and fell in love with. The one she
signed for and the one she viewed are different properties. In fact, the cluster
home she signed for is right at the back of the complex which she never
viewed, and which is not in the best position in the complex. Jack is of the
view that a legally binding contract was concluded with Gloria, in accordance
with the written signed document, for the cluster home described in the
document. Gloria approaches you for legal advice as she thought that she
was signing for the cluster home that was next to the guardhouse at the
entrance of the complex. Apply the will theory and the direct reliance theory
and advise Gloria whether she concluded a legally binding contract with Jack,
based on the written document that they both signed, for the cluster home
described in the document. Discuss fully and refer to case law in your answer.
Do not apply the Consumer Protection Act 68 of 2008
Legal Advice for Gloria
In this scenario, two primary theories of contract law can be applied: the will theory
and the direct reliance theory. Understanding these theories helps determine
whether a legally binding contract was concluded between Gloria and Jack.
Will Theory
The will theory of contract law posits that a contract is based on the actual intentions
and agreement (consensus ad idem) of the parties involved. For a contract to be valid
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