Law of Contract: Understanding Contracts

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What is a contract?

An agreement entered into by two or more parties with the intention of creating a legal obligation or legal obligations.

What is Aminus contrahendi?

Serious intention to create legally enforceable obligations.

How is the intention to contract determined?

It is a question of fact determined with reference to available evidence.

What happens in the absence of Aminus contrahendi?

Where X leads Y into reasonable belief that she does not seriously intend to bind herself, the law will protect the reasonable belief and uphold the contract, despite the absence of a genuine contract. Signup and view all the answers

Are all agreements considered contracts?

No, a contract is an agreement, but not all agreements are contracts. Signup and view all the answers

Are social or domestic arrangements considered contracts?

No, social or domestic arrangements do not intend their agreements to give rise to legally binding obligations. Signup and view all the answers

What is the primary goal of marriage according to the text?

The primary goal of marriage is not to create obligations. Signup and view all the answers

What is the main requirement for a valid contract related to the minds of the parties?

Consensus - The minds of the parties must meet on all material aspects of their agreement. Signup and view all the answers

Explain the concept of capacity in relation to contracts.

Capacity refers to the parties having the necessary ability to contract. Signup and view all the answers

What are the formalities required for a contract?

Formalities refer to the format in which the contract is required to be. Signup and view all the answers

What is a judgment by consent in legal terms?

A judgment issued based on an agreement between parties to a lawsuit. Signup and view all the answers

How are contracts entered into by organs of state generally treated?

Contracts entered into by organs of state are generally treated like any other in the commercial domain. Signup and view all the answers

What is the difference between direct horizontal application and indirect horizontal application of the Constitution?

Direct horizontal application involves attacking a contract on the basis of non-compliance with the Constitution without reference to common law, while indirect horizontal application exerts the influence of the Constitution on contract law in a dispute between private parties. Signup and view all the answers

What is the purpose of section 39(2) of the Constitution?

The purpose of section 39(2) is to ensure that the common law is infused with the values of the Bill of Rights. Signup and view all the answers

According to Barkhuizen v Napier, how are contracts subject to constitutional control?

Contracts are subject to constitutional control by ensuring that contractual terms are consistent with the policy objects of the Constitution. Signup and view all the answers

What is required to prove the existence of a contract in terms of consensus?

Consensus must be proven through the actual subjective agreement or the apparent objective agreement of the parties. Signup and view all the answers

How is consensus reached in the context of contractual agreements?

Consensus is reached through a process of communication involving the declaration of wills by the parties, either through words, conduct, or silence. Signup and view all the answers

What is the difference between actual subjective agreement and apparent objective agreement in contract law?

Actual subjective agreement is when parties reach consensus based on their own understanding, while apparent objective agreement occurs when one party is under the reasonable belief that an agreement has been reached. Signup and view all the answers

What type of right is created by a contractual obligation?

Personal right Signup and view all the answers

How is a civil obligation different from a natural obligation?

Civil obligations are enforceable through legal action, while natural obligations are not enforceable. Signup and view all the answers

What are the three main sources of obligations mentioned in the text?

Contract, Delict, and Enrichment Signup and view all the answers

What are the two types of property mentioned in the text?

Corporeal and Incorporeal things Signup and view all the answers

What are the two categories of law that have influenced the development of the modern notion of contract?

Common law and Statute Signup and view all the answers

What is the nature of the influence of the Constitution of the Republic of South Africa, 1996 on the law of contract?

Supremacy of the Constitution Signup and view all the answers

What is the goal of contract law in relation to promises?

Create legal certainty by ensuring that people fulfill their promises. Signup and view all the answers

What are the competing values in contract law?

Sanctity of contract and Good faith (Fairness in contractual dealings). Signup and view all the answers

What is the significance of Standard Form Contracts (SFC) in contract law?

Majority of transactions are concluded by way of SFC (95% estimate). Signup and view all the answers

What do Freedom of contract and Good faith compete against in contract law?

Freedom of contract vs. Good faith. Signup and view all the answers

What is emphasized in the cornerstones of contract law?

Freedom and sanctity of contract. Signup and view all the answers

Law of Contract: Understanding Contracts - Mr. LK Thutse

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