Contract Law

Question 1

What creates an obligation between two parties in a contract?

Answer 1

• Rights and duties

Question 2

List the requirements for a contract to be legally binding:

Answer 2

• Legality
• Capacity to Contract
• Consensus

Question 3

What determine the nature of a contract?

Answer 3

Essentialia

Question 4

What are the terms automatically read into a contract based on the type of contract referred to as?

Answer 4

• Naturalia

Question 5

Which terms of contract can be specifically changed/shifted by the contracting parties?

Answer 5

• Incidentalia

Question 6

Define what an employment contract is.

Answer 6

• A legally enforceable agreement between an employer and an employee

Question 7

List three agreements required to be present on an employment contract:

Answer 7

• Amount of remuneration to be paid (Salary/Wage)
• Services to be rendered by the employee
• Intention to establish an employment relationship

Question 8

What are the naturalia of an employment contract based on?

Answer 8

• Common law and Legislation

Question 9

List the requirements for a contract of purchase and sale:

Answer 9

• Intention of selling and buying
• Agreement on the thing being sold
• Agreement on the purchase price

Question 10

What is a contract?

Answer 10

• An agreement, enforceable by law, creating rights and duties between the parties.
• This agreement may either be written or verbal between the parties creating the legal obligation.

Question 11

Discuss how the influence of contract law.

Answer 11

• Influenced by Roman-Dutch ‘Law of Contract’ which was further influenced by the Canon and Roman laws

Question 12

What is Contract Law?

Answer 12

Provides legals framework of which persons can:
- engage in business and exchange resources
- be aware that there is an agreement which is fair and beneficial to all participating parties.
It also strengthens and supports private enterprise in South Africa whilst regulating it in the interest of fair dealing.

Question 13

List the requirements for a legally binding contract:

Answer 13

• Consensus
• Capacity to Contract
• Legality
• Possibility
• Formalities

Question 14

Within the context of contract law, what is meant by “offer”?

Answer 14

• This refers to a clear statement from one party to which they will be bound to should the other party accept it.

Question 15

What is the concept of contract which allows it to exist?

Answer 15

• The one party is required to make an offer of which the other party must be willing to accept.

Question 16

What is meant by ‘breach of contract’?

Answer 16

• The failure to perform any parts of the contract without any legal justification or defence.