MER100T Chapter 7 Requirements FOR A Valid Contract Consensus PDF

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Summary

MER100T_ CHAPTER_ 7 REQUIREMENTS FOR A VALID CONTRACT_ CONSENSUS

STUDY OBJECTIVES
After studying this study unit, you should be able to:
Discuss the date and place of the conclusion of the contract
Discuss the date and place of conclusion of postal, telegraphic, tel...

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9/18/21, 1:00 PM

MER100T: CHAPTER: 7 REQUIREMENTS FOR A VALID CONTRACT: CONSENSUS Flashcards | Quizlet

MER100T: CHAPTER: 7 REQUIREMENTS FOR A VALID CONTRACT: CONSENSUS Terms in this set (22) • Must be precise. • Must have sufficient information pertaining to the offer, to

• Clear and Unambiguous

enable the offeree to be able make up his mind about the offer. • If the offer is in a written document, it must contain all terms of the contract.

• Contract comes into being at the time and place when the parties reach consensus. ❖ Contracts concluded by post (When and where do such Date and place of conclusion of the

contracts come into being):

contract

✔ Declaration ✔ Expedition theory ✔ Reception theory ✔ Communication or information theory

✔ Revocation- Taking back the offer before it has been accepted. ✔ Effluxion of time- time has lapsed before acceptance. Termination of Offer

✔ Rejection- If the offeree rejects an offer. ✔ Death- Death of either of the parties to the offer. ✔ Insanity- By either one of the parties ✔ Counter- offer- If the offeree accepts the offer but makes a counter offer.

✔Communication or information

-When and where the letter of acceptance is being read

theory

Contracts concluded by telex and fax

❖ Information theory Contracts concluded electronically ❖ Reception theory

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MER100T: CHAPTER: 7 REQUIREMENTS FOR A VALID CONTRACT: CONSENSUS Flashcards | Quizlet

❖ In order for the requirement of Consensus to be met there must be an Offer and Acceptance made by the contracting OFFER

parties. ❖ Offer- defined as a declaration by the offeror of intentions to conclude a contract.

• Clear and Unambiguous • Complete Requirements of an Offer

• Communicated to the Offeree • Made with an intention that it will serve as an offer, that it may be accepted and that a valid contract may result therefrom.

• Complete

• Communicated to the Offeree

• Made with an intention that it will serve as an offer, that it may be accepted and that a valid contract may result therefrom.

• Must contain all the terms of the contract, i.e. purchase price or lease period.

• Offer must be communicated to the person whom the Offeror wishes to enter into contract with.

• It must be more than a statement. • It must be an intention to do business. • A mere promise is not enough. • An advertisement is not an offer, it is merely an invitation to do business, e.g. tenders

❖ Declaration by the offeree to conclude a contract in accordance with the terms of the Offer. ❖ Requirements: Acceptance

+ Clear and unambiguous + Unconditional + Take place within the time stipulated + Be communicated by the offeree to the offeror in the prescribed manner

✔ Declaration theory

✔Expedition theory

-contract comes into being at the time where and when the letter of acceptance is being written.

-at the time and place where the letter of acceptance is posted

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MER100T: CHAPTER: 7 REQUIREMENTS FOR A VALID CONTRACT: CONSENSUS Flashcards | Quizlet

-At the time and place when and where the letter of ✔Reception theory

acceptance if received or delivered, even before it has been read.

• Different case law apply: • Wolmer v Rees Contract concluded by telephone

• Tel Peda Investigation Bureau (Pty) Ltd v Van Zyl • S v Henckerf –

• Wolmer v Rees

• Tel Peda Investigation Bureau (Pty)

- As soon as the offeree has uttered his word of acceptance.

As soon as the offeror heard the acceptance.

Ltd v Van Zyl

-Deciding case which was in line with the case of Van Zyl, • S v Henckerf –

where it was decided that contracts concluded telephonically will come into existence at the time when and place when the Offeror hears the acceptance of his offer from the Offeree.

❖ Information theory

❖ Reception theory

Tickets and Receipts

Tacit Agreements

is applicable here, i.e. as soon as the fax or letter of acceptance has been read.

is applicable, i.e. the contract is concluded at the time when and place where the acceptance has been received

• A Receipt is not an Offer and any printed terms on the receipt do not form part of the contract.

❖ Agreements concluded by conduct, e.g buying a newspaper at the shop.

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