Understanding Contracts: Definition and Differences

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What distinguishes a contract from other agreements?

A serious intention to create legally enforceable obligations (animus contrahendi)

Why are social and domestic agreements usually not enforceable as contracts?

Parties do not intend for their agreement to give rise to legally binding obligations.

Explain why 'gentlemen's agreements' are generally not enforceable as contracts.

They lack the serious intention (animus contrahendi) to create legally enforceable obligations.

Give an example of an agreement that is not a contract.

A and B agree to play tennis together on Saturday afternoon. Signup and view all the answers

What is the key ingredient that differentiates a contract from non-binding agreements?

A serious intention to create legally enforceable obligations (animus contrahendi) Signup and view all the answers

Why do agreements made as part of a play or as a joke not qualify as contracts?

They lack the serious intention to create legally binding obligations. Signup and view all the answers

What is the role of administrative justice in framing the contractual relationship?

Administrative justice frames the contractual relationship. Signup and view all the answers

How does the Constitution of the Republic of South Africa, 1996 affect the State's contractual rights?

The State's contractual rights must yield before its public duties under the Constitution of the Republic of South Africa, 1996. Signup and view all the answers

When may a contractual provision seeking to fetter a Minister's discretion not be enforced?

A contractual provision that seeks to fetter a Minister's discretion will not be enforced if it must be exercised in the public interest. Signup and view all the answers

What are the requirements for a contract to be binding?

Apart from mere agreement, various other requirements must be satisfied for a contract to be binding. Signup and view all the answers

Under what circumstances might an administrative body need to provide a hearing before canceling an agreement?

An administrative body might need to provide a hearing before canceling an agreement due to its public status. Signup and view all the answers

How can a contract be defined based on the discussion provided?

A contract may be defined as an agreement entered into by two or more persons with the intention of creating legal obligations recognized by the law. Signup and view all the answers

Can a contract be formed based on the objective appearance of agreement, even without actual agreement?

Yes Signup and view all the answers

What is an example of creating an objective appearance of agreement?

B appending her signature to a document clearly stating the terms of A's offer. Signup and view all the answers

In the scenario described, what actions did the individual take in reliance on the letter from the prospective employer?

Resigned from present job, sold house, made arrangements for moving. Signup and view all the answers

What was the outcome when the prospective employer realized the mistake in the letter of appointment?

Informed the individual of the mistake. Signup and view all the answers

Could the individual insist that a contract exists despite the mistake in the appointment letter?

Yes Signup and view all the answers

What factors may be considered in determining whether a contract exists in such a situation?

Fault in creating the impression, prejudice to one party if the contract is denied. Signup and view all the answers

What are the steps a court must follow before developing the common law?

a) Determine the common-law position, b) Consider the underlying reasons, c) Enquire if the rule offends the Bill of Rights, d) Consider how to amend the common law, e) Consider wider consequences of change Signup and view all the answers

According to the court, what should be the major engine for law reform?

Legislature Signup and view all the answers

Why is it important for a court to consider whether a rule offends the spirit of the Bill of Rights?

To ensure that the common law aligns with the fundamental rights and principles established in the Bill of Rights. Signup and view all the answers

What difficulty arises regarding the direct horizontal application of the Bill of Rights?

Extent of direct horizontal application is a matter of some difficulty. Signup and view all the answers

Why does the court emphasize respect for the principle of separation of powers?

To ensure that the Legislature, not the Judiciary, is the primary driver of law reform. Signup and view all the answers

State the principle upheld by the court in the case of I Pieters & Co v Salomon.

When an offer is made in plain language and accepted in good faith, a contract is concluded regardless of any hidden reservations by the promisor. Signup and view all the answers

What was the outcome of the case of I Pieters & Co v Salomon regarding the mistaken amount in the offer?

The court upheld the claim for the full amount, £490, even though the offeror mistakenly believed it to be £345. Signup and view all the answers

Explain the significance of the Blackburn dictum in South African contract law.

The Blackburn dictum influenced South African judges to adopt an objective approach to contracts, emphasizing the importance of clear and unambiguous language in offers. Signup and view all the answers

What did the Appellate Division choose to adopt in the case of I Pieters & Co v Salomon?

The English approach to contract law. Signup and view all the answers

Why did the court consider unexpressed reservations irrelevant in the case of I Pieters & Co v Salomon?

Unexpressed reservations were deemed irrelevant to ensure that promises made in plain language and understood in good faith are upheld as contracts. Signup and view all the answers

How did the case of I Pieters & Co v Salomon demonstrate the influence of Smith v Hughes?

The case demonstrated the influence by emphasizing the objective interpretation of offers and acceptances, similar to the stance taken in Smith v Hughes. Signup and view all the answers