Contract Law: Valid, Void, and Voidable Contracts

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What are valid contracts?

Agreements between parties that complies with the prescribed validity requirements.

Define void contracts.

Agreements that do not comply with the validity requirements.

Explain voidable contracts.

Voidable contracts contain a legal flaw to the disadvantage of one party, but the contract remains in effect until that party seeks to declare it void.

What is consensus in contract law?

Consensus is when the minds of the parties meet on all material aspects of their agreement. Signup and view all the answers

How is consensus established in a contract?

Consensus is established through the analytical tool of offer and acceptance. Signup and view all the answers

What happens if there is uncertainty or vagueness in the terms of a contract?

Consensus is not reached. Signup and view all the answers

What must a person do if they offer to supply goods that have been reconditioned or rebuilt?

Indicate this clearly Signup and view all the answers

According to Section 31 of the CPA, what type of marketing is prohibited?

Negative option marketing Signup and view all the answers

When does the cooling off period apply?

Direct marketing only Signup and view all the answers

What information must be disclosed in catalogue marketing when the consumer did not have an opportunity to inspect the goods or services before the contract?

Suppliers name, license or registration number, physical address, refund policy etc. Signup and view all the answers

What does Section 16 of the CPA entitle the offeree to do?

Rescind any contract concluded Signup and view all the answers

What is the general rule regarding making offers to the public?

One may make an offer to the public at large and then conclude a contract with specific members of the public who respond to the offer Signup and view all the answers

Who makes the offer in a simple auction?

The bidder Signup and view all the answers

Who makes the offer in an auction subject to conditions?

The auctioneer Signup and view all the answers

In the case of Bloom v American Swiss Watch Co, why was the reward not claimed by the first person who supplied information to the police?

Because he was unaware of the offer at the time. Signup and view all the answers

Why did no contract come into being between Bloom and ASW in the case mentioned?

Because Bloom gave the information before becoming aware of the notice. Signup and view all the answers

What is the key factor for parties to agree on an offer and acceptance?

Awareness of their agreement Signup and view all the answers

What is the main difference between offers to the public and call for tenders?

Call for tenders are invitations to make offers, not open offers. Signup and view all the answers

According to Smith J, is advertising a price an offer to the public?

No Signup and view all the answers

What did Smith J think would happen if advertising a price constituted an offer?

Thousands of members of the public might demand to be served. Signup and view all the answers

In the context of supermarkets, who is generally considered to make an offer to purchase?

The customer Signup and view all the answers

Have the courts in SA decided who makes an offer in the case of goods displayed in supermarkets?

No Signup and view all the answers

Which case has been suggested as a reference for the courts in determining who makes an offer in supermarkets?

Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd Signup and view all the answers

How are offers generally made in supermarkets according to the suggested case reference?

By presenting the articles for payment Signup and view all the answers

What is the key requirement for a valid acceptance in contract law?

The acceptance must be unqualified. Signup and view all the answers

How can an offeree express their intention to accept an offer?

Expressly (e.g. 'I accept' or signature) or tacitly (e.g. a nod). Signup and view all the answers

What happens if an acceptance contains new terms or leaves out original terms of the offer?

No clear acceptance and no consensus is reached, therefore a valid contract has not been concluded. Signup and view all the answers

Why is it important for the acceptance to be made by the person to whom the offer was addressed?

To ensure that the acceptance is directed to the correct party and matches the intent of the offer. Signup and view all the answers

What is the significance of loss of legal capacity to act in relation to contract acceptance?

It can impact the validity of the contract if either the offeror or the offeree lacks legal capacity to act. Signup and view all the answers

How does the timing of communication of an offer affect its validity?

The offer only takes effect once communicated to the offeree. Signup and view all the answers