Agreement

Question 1

What is a contract?

Answer 1

“An agreement between two (or more) parties, which creates legally binding and enforceable
rights and duties between them”

Question 2

What is another word for agreement?

Answer 2

consensus

Question 3

An agreement is the _____________ of contract law

Answer 3

heart/foundation

Question 4

What does an agreement/consensus presuppose?

Answer 4

presupposes a meeting of minds,
i.e. that both parties know and
understand what it is they are
agreeing to.

Question 5

How does court determine if parties have reached consensus? (3)

Answer 5

offer + Acceptance = contract

Question 6

Define an offer

Answer 6

“Proposal setting out TERMS on
which OFFEROR willing to contract”

Question 7

Give an example of an offer?

Answer 7

O: I, MDG, hereby offer to sell my flat to you,
CP, for R3 000 000.

Question 8

Define acceptance

Answer 8

“Acceptance of terms of offer”

Question 9

Give an example of acceptance

Answer 9

A: Thank you, I accept.

Question 10

When is a contract concluded?

Answer 10

the moment (valid) offer is (validly) accepted !!!!!

Question 11

WHY IS THE POINT A CONTRACT IS ACCEPTED SO IMPORTANT? (2)

Answer 11

1. As you are then BOUND by it
2. FAILURE to observe = breach!

Question 12

What are the requirements for a “valid” OFFER (3)

Answer 12

i. Complete, clear & unambiguous
ii. Intention to contract
iii. Still in existence

Question 13

What are the requirements for a “valid” ACCEPTANCE (4)

Answer 13

i. By Offeree
ii. Made knowingly
iii. Unconditional
iv. “Mirror image” of offer
v. Communicated to Offeror

Question 14

What does CPA stand for?

Answer 14

Consumer protection act

Question 15

What does the CPA, S23 (6) and (9) state?

Answer 15

disclosure of price of goods or services in consumer contracts.

Question 16

When does a supplier not require a consumer to pay a price for any goods or services, as stated in CPA S23 (6)? (2)

Answer 16

1. higher than the displayed price for those goods or services; or
2. if more than one price is concurrently displayed,
   higher than the lower or lowest of the prices so
   displayed.

Question 17

According to CPA S23 (80 If a price that was once displayed has been fully ________ and ___________ by a second displayed price, that second price must be regarded as the displayed price.

Answer 17

covered
obscured

Question 18

According to CPA S23 (9), When is a price as displayed contains an inadvertent and obvious error, the supplier is not bound by it after? (2)

Answer 18

1. correcting the error in the displayed price; and
2. taking reasonable steps in the circumstances to
   inform consumers to whom the erroneous price may have been displayed of the error and the correct price.

Question 19

What is a ‘counter-offer’ ?

Answer 19

a rejection of an offer to enter into a contract, as well as a new offer that materially changes the terms of the original offer.

Question 20

What does section 31 of CPA prohibit?

Answer 20

‘negative option marketing’

Question 21

What is an example of ‘negative option
marketing’?

Answer 21

“If I don’t hear from you, I will consider the
horse mine for …”

Question 22

What must acceptance correspond with?

Answer 22

The ‘mirror image rule’

Question 23

What is the mirror image rule?

Answer 23

when you say “yes” to an offer, that becomes the basis for a contract, so you’re accepting that offer exactly as it is – with no changes or modifications.

Question 24

What are the ramifications of the ‘mirror image rule’? (2)

Answer 24

1. Variation in contract = counter-offer
2. Incomplete acceptance

Question 25

Acceptance must be _____________________ to offeror

Answer 25

communicated

Question 26

What does CPA S22 (2) say about when is an agreement concluded between parties by means of data?

Answer 26

An agreement concluded between parties by means of data messages is concluded at the time and place where the acceptance of the offer was received by the offeror

Question 27

CPA S____ (b): A ____ message must be regarded as having been received by the addressee when the complete data message enters the ____________ system designated or used for that purpose by the addressee and is capable of being retrieved and processed by the addressee;

Answer 27

23 data information

Question 28

What does a valid acceptance and offer result in?

Answer 28

VALID ACCEPTANCE + VALID OFFER = BINDING AND ENFORCEABLE CONTRACT.

Question 29

What is the information theory?

Answer 29

In terms of the information theory, acceptance is only valid and the contract concluded once it has been communicated to the offeror.

Question 30

When is a contract therefore concluded?

Answer 30

The contract is therefore concluded at the time and place where the acceptance comes to the attention of the offeror

Question 31

What is the expedition theory?

Answer 31

When the offeror: - makes his offer by post or - authorizes acceptance by post. i.e contract concluded when acceptance is posted

Question 32

What is failure to honor the contract mean?

Answer 32

BREACH OF CONTRACT and compensatory damages to be payed

Question 33

What does ECTA stand for?

Answer 33

Computer communications and Transactions Act

Question 34

Limited Statutory exceptions to the above rule in _____ & ___

Answer 34

ECTA CPA

Question 35

What are three ways in which a contract can be terminated ? [3]

Answer 35

1. Revocation– Means withdrawal of the offer by the offeror 2. Lapse of offer – This means that the offer expires. 3. Rejection

Question 36

What rights do consumers have?

Answer 36

Consumers have unilateral right to cancel certain contracts.

Question 37

How long to cancel A CONTRACT under S44 OF ECTA?

Answer 37

7 DAYS

Question 38

How long to cancel A CONTRACT under S44 OF ECTA?

Answer 38

S 16 CPA - 5 days re ‘direct marketing’

Question 39

What does S17 of CPA state and what is it subject to?

Answer 39

That you can cancel: advance reservations/bookings/orders, subject to payment reasonable cancellation fee.