Formation, Breach & Remedies of Contracts and Delict

Question 1

What is a contract?

Answer 1

A valid (not void/voidable) legally binding agreement.

Question 2

Explain an offer, acceptence and termination

Answer 2

Offer
- Unilateral/ Bilateral
- Not an invitation to treat
- Made with intention
Termination
- Rejection
- Death
- Frustration

Question 3

What are the principles behind intention to contract

Answer 3

• Parties to have mental attitude
• Made in honor is voidable
• In commercial: There’s intention
• In domestic: No intention

Question 4

Meaning and exceptions behind privity of a contract?

Answer 4

Meaning: Contract only applicable to those party to it.
Exceptions:
- life insurance(Dependents)
- Agents by law(Principle[law] Agent[guardians] 3rd Party[minor]
- Cession(fiduciary)

Question 5

Meaning of terms in contracts and their classfications?

Answer 5

Meaning: Governs the relationship between parties.
1) Material: essential to the contract
2) Immaterial: non-substantial
3) Express: specific term in writing (working hours)
4) Implied: words therefore unwritten but
expected

Question 6

Meaning and rules of exemption clauses?

Answer 6

Meaning: Exclused a party from the liabilities of breaching a contract even when it’s their fault.

Rules:
1) Must be lawful
2) Be integrated into the contract
3) Accepted and signed by both parties.

Question 7

What is a breach on Contract?

Answer 7

Failure to discharge a part/ entire obligation set by the contract.

Question 8

Types of breaches?

Answer 8

1) Actual- When time has arrived but no performance
2) Anticipatory- Time is close but a party implies unwillingness to render performance

Question 9

Remedies to breaches?

Answer 9

1) Specific Performance.
Rules:
- Be possible
- Not be of personal service
- Be enforceable
- Not harm the public
2) Damages.
Types:
- Liquidated(part of contract)
- Punitive(awarded by courts)
- Interdict
- Special(out of pocket)

Question 10

How does a contract end?

Answer 10

1) Discharge: Performance is completed

2) Termination:
- Breach
- Insolvency
- Death
- Frustration
- Prescription(expiry of time)

Question 11

What is a delict?

Answer 11

Unlawful act that causes harm to a person

Question 12

Elements of delict include

Answer 12

1) Unlawful conduct
3) Fault(intentional or negligence)
4) Causation(direct, indirect, foreseeable/not remote)
5) Harm/Damage/Loss(injury, damage, economic loss & defamation)

Question 13

What is the delict of negligence and the implications of the defendent’s conduct?

Answer 13

Meaning: Failure to take due care under the circumstances.
Conduct:
1) Foresore it
2) Did they try lessen harm?
3) Conduct of claiment

Question 14

What influence does the conduct of the claiment have on the determination?

Answer 14

1) Voluntary assumption of risk(Volenti non)
2) Harm speaks for itself(Res Ipsa)
3) Contributory
4) Nours actus interveniens(Another act that makes the og act worse)