When and where contract was concluded
1.
Test or exam
Test
Year
2016
Textbook
Question
Using the theories of time and place of formation of contract determine when and where the following
contracts have been concluded.
On 1 March Sinazo meets Gail whilst they are both visiting the Jazz Festival in Cape Town. Sinazo tells Gail
that she is looking for a buyer for her antique [very old] wardrobe. She offers to sell it to Gail for R20 000. On
5 March Gail writes a letter of acceptance and faxes it from Cape Town where she lives to Sinazo’s home in
Durban. Although the fax is received on the same day on which it was faxed Sinazo only readsthe fax when
she returns home on 20 March.
Q.4.1.1 When and where was the contract concluded?
Q.4.1.2 Name and explain the correct theory that ought to have been used to determine the correct answer.
Q.4.2 List the exceptions to the correct theory as contemplated in Q.4.1.2. (3) Use the following additional set
of facts to answer Q.4.3 Gail is very diligent and also emails the letter of acceptance to Sinazo on 4 March.
Sinazo tells Gail that she will be able to retrieve the email on her smart phone from wherever she is. Sinazo
receives the email on the same day on which it was sent by Gail on her mobile phone whilst still in Cape
Town. Sinazo however, only reads the email on 6 March in Cape Town.
Q.4.3 Determine the time and place of formation of the contract if Sinazo instructed Gail to email a written
acceptance to her home email address. In your answer also identify and briefly explain the correct theory that
ought to be used. (4)
2.
Test
2017
Q.3.1 On 1 March Trudi meets Gail whilst they are both at a law conference in Bloemfontein. Trudi mentions
to Gail that she is looking for a buyer for her 3D printer. She offers to sell it to Gail for R20 000. On 5 March
Gail writes a letter of acceptance and faxes it from Cape Town where she lives to Trudi’s home in Durban.
Although the fax is received on the same day on which it was faxed Trudi only reads the fax when she returns
home on 20 March.
Q.3.1.1 Identify and explain the relevant theory applicable if Trudi did not stipulate a method of acceptance.
(2)
Q.3.1.2 Determine where the contract was concluded. (1)
Q.3.1.3 Determine when the contract was concluded. (1)
Q.3.1.4 List the exceptions to the theory identified in Q.3.1.1. (3)
3.
Test
2017
Q.3.2 Assume that Gail emails the letter of acceptance to Trudi on 4 March. Trudi tells Gail that she will be
able to retrieve the email on her smart phone from wherever she is. Trudi receives the email on the same day
on which it was sent by Gail on her mobile phone whilst still in Bloemfontein. Trudi however, only reads the
email on 20 March in Durban.
Q.3.2.1 Identify the relevant theory applicable if Trudi instructed Gail to email a written acceptance to her
personal email address. (1)
Q.3.2.2 Determine where the contract was concluded. (1)
Q.3.2.3 Determine when the contract was concluded. (1)
4.
Test
2018
Andy, who resides in Clarens, places an advertisement in a newspaper on the 1st of February 2018 selling
his 2016 Mercedes Benz C180. In the advertisement, Andy requests that all offers be made by post. On the
3rd of February, Buhle makes an offer to Andy and posts the offer from Johannesburg, where she resides.
Andy receives the offer on the 6th of February 2018. On the 7th of February, Andy decides that he will accept
Buhle’s offer and posts his acceptance on the 8 th of February 2018. Buhle receives the letter of acceptance
on the 15th of February, but only reads the letter of acceptance on the 16th of February.
Q.3.3 Which theory would be applied to determine the time and place of conclusion of the contract between
Andy and Buhle? (1)
Q.3.4 According to the correct theory identified in Q.3.3, indicate when and where did the contract between
Andy and Buhle come into existence? (2)
Q.3.5 Assume that Andy accepted Buhle’s offer telephonically on the 8th of February. Indicate which theory
would apply? (1)
Q.3.6 According to the correct theory identified in Q.3.5, indicate when and where did the contract between
Andy and Buhle come into existence? (2)
Q.3.7 Assume that Andy accepted Buhle’s offer via email on the 8th of February 2018. Buhle receives the
email in her inbox on the same day, but only reads it on the 9th of February 2018. Indicate which theory
would apply? (1)
Q.3.8 According to the correct theory identified in Q.3.7, indicate when and where did the contract between
Andy and Buhle come into existence?
5.
Test
2019
Christine, who resides in Cape Town, is interested in purchasing a digital camera. She scours the internet
and comes across an advert by Amanda, who resides in East London, who is selling her Canon 1300 EOS
digital camera for R5 500 on photographymania.co.za. Christine emails Amanda to enquire about the
availability of the camera and Amanda indicates that it is still available and makes Christine an offer. Christine
emails Amanda her letter of acceptance on the 20th of May 2019. Christine’s email enters Amanda’s Gmail
account also on the 20th of May 2019. On the 25 th of May 2019 Amanda logs onto her Gmail account whilst
on a business trip to Johannesburg and reads Christine’s letter of acceptance.
Q.2.3 Which theory would be applied to determine the time and place of conclusion of the contract between
Christine and Amanda? (1)
Q.2.4 Refer to your answer to Q2.3; indicate when and where the contract between Christine and Amanda
came into existence. (2)
Q.2.5 Assume that Amanda accepted Christine’s offer telephonically on 22 May. Indicate which theory would
apply to determine the time and place of conclusion of the contract. (1)
Q.2.6 Refer to your answer to Q2.5; indicate when and where the contract between Christine and Amanda
came into existence. (2)
6.
Revised
examination
2020
Thandi lives in Johannesburg and sees an advertisement in the newspaper from James offering to sell his
speedboat for R45 000. She immediately telephones James and makes an offer of R35 000 cash, which
James refuses. James does however agree to sell it for R40 000 and tells Thandi that he is willing to give her
a week to decide. Thandi however will be out of town for work in a mining town in the Gauteng area and asks
James whether she can post her acceptance to him due to poor reception. James agrees. Thandi posts her
acceptance four days later from the mining town.
Q.6.1
Q.6.1.1 Does Thandi’s acceptance amount to a valid contract? (1)
Q.6.1.2 Identify the theory that is applicable in this scenario. (1)
Q.6.1.3 Where did the contract come into existence? (1)
Q.6.1.4 As James gave Thandi an opportunity to decide whether to accept the offer or not, identify the type of
agreement that came into effect (1)
Q.6.1.5 If Thandi and James had reached agreement over the telephone, which theory of acceptance would
have applied? (1)