Topic 2 quick revision

Question 1

what is an offer

Answer 1

1. proposal to contract
2. serious intention
3. include material terms of the contract

Question 2

what are offer and acceptance

Answer 2

tools to reach consensus

Question 3

characteristics of an offer

Answer 3

1. addressed to particular individual
2. unilateral declaration of will
3. offeree can bring contract into being
4. can be withdrawn at any time until acceptance

Question 4

how long is an offer open for

Answer 4

pacta de contrahendo = keeps on offer open for a specified period of time, can always be withdrawn

Question 5

requirements for a valid offer

Answer 5

1. firm
2. complete
3. clear and certain

Question 6

what is the problematic element of valid offers

Answer 6

the firmness requirement

Question 7

what do S30 and S31 of the CPA regulate

Answer 7

negative option marketing and bait marketing

Question 8

carlill carbolic smoke

Answer 8

compliance with the requirements of the offer to the public made them responsible to pay her

Question 9

Steyn v LSA motors

Answer 9

Steyn did not fall into the specific subsection of who the offer was made to - therefore the offer was not open to him and could not validly accept

Question 10

is an advert an offer to the public

Answer 10

no it is an invitation to do business

Question 11

is a reward an offer to the public

Answer 11

yes, Bloom v American Swiss Watch Co

Question 12

Termination of an offer

Answer 12

Rejection
Death 
Effluxion of time
Acceptance
Revocation
Losing legal capacity

Question 13

what does acceptance do

Answer 13

creates a contract between offeree and offeror

Question 14

what is the mirror image rule

Answer 14

the offeree must declare their intention and accept all the terms of the proposal contained in the offer

Question 15

how can acceptance be expressed

Answer 15

express or tacit but not by silence

Question 16

what are the requirements for a valid acceptance

Answer 16

1. unqualified
2. expression
3. consciousness
4. in the prescribed form

Question 17

why is it important to know when acceptance has taken place

Answer 17

offer can be withdrawn until the acceptance

Question 18

when is acceptance effective

Answer 18

1. inter praesentes

2. inter absentes

Question 19

what are 4 main theories of acceptance

Answer 19

1. expedition
2. declaration
3. reception
4. information

Question 20

declaration theory

Answer 20

acceptance = the moment and place where the offeree declares acceptance to the offer

Question 21

expedition theory

Answer 21

moment offeree sends acceptance to the offeror

- postal contracts

Question 22

reception theory

Answer 22

moment offeror receives acceptance

Question 23

information theory

Answer 23

moment offeror notes reception of the acceptance

Question 24

what is the general rule in SA

Answer 24

we use the information theory

Question 25

what are the exceptions to the general rule in SA

Answer 25

1. postal contracts 2. electronic contract 3. express decision to use another theory

Question 26

Capex

Answer 26

contract was concluded in both cases when the letter of acceptance was posted , departure from standard rule - commercial convenience, certainty, general reliability of the post

Question 27

requirements for the expedition theory

Answer 27

1. offer and acceptance made by post or telegram 2. postal services operating normally 3. offeror must not have indicated contrary intention 4. contract must be commercial

Question 28

A to Z bazaars

Answer 28

contract essentially neutralised by telegram and therefore no contract came into existence when it was posted

Question 29

what is the meaning of received for an electronic contract

Answer 29

complete data message must have entered the system,

Question 30

what theory do electronic contracts use

Answer 30

reception theory (Jamieson v Sabingo)