UNIVERSITY EXAMINATIONS

May/June 2025

PVL3702

Law of Contract

100 Marks
22 May 2025
08h00-11h00 (3 Hours)

First examiner: Adv R Ismail (First Examiner)

Second examiner: Professor CJ Pretorius (Second Examiner)

This paper consists of 9 pages.

This is a closed-book examination

THIS IS A TAKE-HOME EXAM

PLEASE READ THE FOLLOWING VERY IMPORTANT INFORMATION CAREFULLY BEFORE ANSWERING
THE EXAMINATION QUESTIONS.

1. The examination question paper counts 100 marks.

2. It consists of six (6) questions. Answer ALL the questions. In total for all your answers put together, you
must not exceed nine (9) typed pages.

3. The duration of the examination on the timetable is three (3) hours.

4. In addition to the duration of the examination indicated on the timetable, you are given 30 minutes to
FINALISE the uploading of your Pdf exam answer file. Your Pdf exam answer file must be uploaded
via the myExams platform BEFORE 11h30 (South African Standard Time) on 22 May 2025. Note
further that you only have 10 minutes after the scheduled timetabled exam time to submit your Pdf
exam answer file on the Invigilator App. This means that your submission on the Invigilator App must be
done BEFORE 11h10 (South African Standard Time) on 22 May 2025. You must submit your exam Pdf
answer file timeously on both the Invigilator App and on the PVL3702 myExams online platform. No
emailed submissions will be accepted.

5. There will be NO contingency link available to submit your PVL3702 Pdf answer document.
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6. This a closed-book examination. While the examination is in progress, you are not allowed to consult
another person or any source in order to assist you to answer any of the questions contained in this
question paper. While the examination is in progress, you may not assist another student in answering
any of the questions contained in this question paper.

7. This examination is proctored via the Invigilator App. Please take note that you can only scan the QR
code between 07h45 and 08h30 on 22 May 2025. Thereafter you will not be able to scan the QR Code.

The QR code is below:

7. Your exam file must be uploaded on the myExams platform.

7.1 When ready to submit, open the Take-Home (Assignment) assessment again and click on the Add
Submission button.
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7.2. Note the file requirements such as:

a. File size limit.
b. Number of files that can be submitted.
c. File formats allowed.

7.3. Check the acknowledgment checkbox and upload your answers document and then click on the Save
changes button.

7.4. Review your submission information regarding the status and click on your submission file link to check if
it's correct.
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7.5. If you need to resubmit a file, you can click on the Edit Submission button. Note: You will need to delete
any existing files.

7.6 Use proper PDF conversion software to create the final file for upload. Free PDF conversion software is
available on the Internet.

7.7 Add your student number and the module code in the file name. That will assist you to select the correct
document to upload during submission.

7.8 You are advised to preview your submission (answer script) to ensure legibility and that the correct
answer script file has been uploaded.

8. The cover page for your take-home exam must include your name, student number and the module
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code.

9. It is preferred that your take-home exam is typed. However, handwritten submissions will also be
accepted.

10. Whether your answers are typed or handwritten, your submission on the myExams platform must be
made in the form of one PDF document. Only the last file uploaded and submitted will be marked. Even
though you must submit your answer file on the myExams platform and the Invigilator App, only the
submission on the myExams platform will be marked.

10.1 The exam answer file that you submit must not be password protected or uploaded as a “read only” file.

10.2 Your examination answer file will not be marked if:

10.2.1 you send your examination answer file via email.

10.2.2 you submit the incorrect examination answer file. A mark of 0% will be awarded.
10.2.3 you submit your exam answer file on an unofficial examination platform.
10.2.4 you submit your examination answer file in the incorrect file format.
10.2.5 you submit a password-protected document.
10.2.6 you submit your examination answer file late.
10.2.7 you submit your answer file from a registered student account that is not your own.

10.3 The mark awarded for an illegible examination answer file submission will be your final mark. You will
not be allowed to resubmit after the scheduled closing date and time of the exam.

11. If your answers are typed, ensure that the following requirements are adhered to. Items 11.3-11.6
applies to written assignments as well.

11.1 The text must be typed in Arial font, size 12 with single line spacing within the paragraph, and double
line spacing after the paragraph.

11.2 The text must be justified.

11.3 All of the pages must be numbered in the right-hand corner at the bottom of the page.

11.4 All margins must be 2.5cm, but the left margin must be 3cm.

11.5 South African English and not American English should be used. For example, the correct spelling is
“Labour” and not “Labor”.

11.6 Do not use abbreviations or SMS language.

12. This is a closed book examination.

12.1 PLEASE DO NOT CUT AND PASTE ANSWERS FROM THE STUDY GUIDE (OR ANY OTHER
SOURCE), AS THIS WILL CONSTITUTE CHEATING BECAUSE YOU ARE NOT ALLOWED TO
CONSULT ANY SOURCES INCLUDING THE PRESCRIBED STUDY MATERIALS DURING THE
EXAMINATION SESSION. NOTE THAT IN TERMS OF THE EXAMINATION RULES, THE USE OF
ARTIFICIAL INTELLIGENCE SOFTWARE SUCH AS ChatGPT IS STRICTLY PROHIBITED DURING
THE EXAM SESSION.

13. For problem-type questions, the arguments that you make must be logical, well-structured and
substantiated by all of the relevant legal principles. Use the time given wisely.

13.1 Where applicable, refer to case law in your answers. But do not include citations for case law and do not
include footnotes and a bibliography.

13.2 A number of students lose marks because they do not approach problem-type questions correctly.
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When answering such questions, it is important to first identify the problem. Once you have done this,
set out the relevant legal principles. Deal with those principles that relate to the given facts. Next, apply
these principles to the facts. This is where most of the students lose marks - they set out the law in
some detail, but then do not illustrate how it applies to the factual situation they have been asked to
solve. Finally, state your conclusion by giving the appropriate legal advice.

14. You must complete the online declaration of own work when submitting.

14.1 By ticking the Honesty Declaration, you confirm that you have read (i) the University’s Policy on
Copyright Infringement and Plagiarism and the Student Disciplinary Code, which are both available on
myUnisa: www.unisa.ac.za/unisarules, and (ii) the information relating to student values and plagiarism
that is found at https://www.unisa.ac.za/sites/myunisa/default/Study-@-Unisa/Student-values-and-rules.

14.2 Students suspected of dishonest conduct during the examinations will be subjected to disciplinary
processes. Students may not communicate with other students, or request assistance from other
students during examinations. Plagiarism is a violation of academic integrity, and students who do
plagiarise or copy verbatim from published work will be in violation of the Policy on Academic Integrity
and the Student Disciplinary Code and may be referred to disciplinary hearing. Unisa has a zero
tolerance for plagiarism and/or any other forms of academic dishonesty.

15. Unless a student is exempted because of disability or incarceration, students who have not utilised
invigilation or proctoring tools will be deemed to have transgressed Unisa’s examination rules and will
have their marks withheld.

PLEASE NOTE:

If you experience challenges with the Invigilator app, please send a WhatsApp message to the technical
helpdesk on 073 505 8273. Do not contact the lecturers.

For all other exam-related challenges, you may contact the SCSC on 080 000 1870 (choose option 4 for
exams), or e-mail Examenquiries@unisa.ac.za or CLAWExams@unisa.ac.za
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QUESTION 1

The Will Theory reflects a subjective approach to the formation of a contract, which is based
solely on consensus. For a valid contract to be concluded with reference to this theory, there
should be evidence of ‘subjective consensus’ between all the parties. One element of subjective
consensus is that the parties must seriously intend to contract. Briefly explain the other
elements of ‘subjective consensus’. Do not discuss the requirements for a valid offer and a
valid acceptance for this question. [10]

QUESTION 2

Discuss ‘common mistake’ in the law of contract and refer to case law. [10]

QUESTION 3

Mia is interested in purchasing John’s Volvo car, which is a 2023 model. This Volvo is a modern
version of a fully electric car which is powered by a battery, and it does not operate on petrol or
diesel. Mia is impressed with the car and feels that she will definitely save on fuel costs; so, she
concludes a contract of sale for the Volvo with John. The purchase price paid to John is
R500 000. After receiving this payment, the car is registered in Mia’s name. During the
negotiations, prior to concluding the contract of sale, Mia asked John how many kilometers the
Volvo could travel if the battery is fully charged, as this was very important to her. John
responded that the car would travel for a minimum of 1500 kilometers before the battery would
need to be re-charged. However, John knew that the car could only travel for 700 kilometers on
a fully charged battery, but he deliberately misled Mia in order to get a better price for the Volvo.
After driving the car for a period of two months, Mia realises that the car can only travel for a
maximum of 700 kilometers on a full charge. After making enquiries with Volvo South Africa,
she learns that her findings are correct. Assume that John’s representation that the car could
travel for 1500 kilometers when the battery is fully charged is not a term of the contract between
the parties. The market value of the car is R375 000. Had Mia known that the performance of
the battery cannot exceed 700 kilometers when fully charged, she would still have purchased
the car, but would only have been prepared to pay R400 000. Advise Mia fully on the type of
misrepresentation that she can rely on and, based on this cause of action, what amount
of damages (if any) can she claim from John. Assume that none of the parties made a
material mistake. Do not apply the direct reliance theory or the iustus error doctrine to this
question. Do not discuss latent defects or breach of contract, instead your main focus must be
on the pre-contractual representation that John made to Mia. Also, do not apply the Consumer
Protection Act 68 of 2008 to this question. [20]
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QUESTION 4

X owns a hardware business which sells paint. Y is employed at X’s hardware store. Z
approaches Y and asks him to persuade X to buy Z’s paint products in bulk. The quality of the
paint that Z produces is not of the best quality, but Z knows because of the close relationship
that Y has with X, Y will be able to persuade X to conclude a contract with Z. Z agrees to pay Y
a reward of R50 000 if the contract is concluded between X and Z. Y agrees to this arrangement
and succeeds in persuading X to conclude a contract with Z to purchase Z’s paint products for
the sum of R900 000. Y knew that the quality of the paint produced by Z is of an inferior quality.

4.1 After X concluded the contract with Z, X learns of the arrangement Y and Z had. He
approaches you for legal advice because he wants to cancel the contract, he concluded with Z.
Advise X fully on the appropriate cause of action that can be relied on, and if a suitable
remedy is available to him in such a situation. Refer to case law in your answer. Do not
discuss misrepresentation for this question, and do not apply the Consumer Protection Act 68 of
2008 to this question. [10]

4.2 Y wants to enforce the contract between him and Z for the R50 000 reward because Z is
refusing to pay him (Y) the reward amount. Discuss fully the legality aspect relating to this
contract, and advise whether Y is likely to succeed with his claim for R50 000 against Z.
Refer to case law. Do not apply the Consumer Protection Act 68 of 2008. [10]

QUESTION 5

The driver of Denson Contractors (Pty) Ltd (“Denson”) drives the company’s bakkie to visit Ace
Hardware (Pty) Ltd (“Ace Hardware”) to purchase paint which Denson ordered from Ace
Hardware. At the entrance of the Ace Hardware premises is a massive notice board with huge
writing that excludes all liability on the part of Ace Hardware for any injury to any person or
entity, as well as damage caused to the property of any person or entity, whilst being on the
premises of Ace Hardware, arising from any form of negligence of Ace Hardware's employees.
The driver from Denson was talking on his cell phone when he drove into the premises of Ace
Hardware. As a result, he did not see the massive notice board. He parked Denson’s bakkie in
the parking area and walked into the hardware store. When he returned to the parking area, he
found that the Denson bakkie was damaged. Ace Hardware apologised for the damage caused
to the bakkie as one of its employees accidentally and negligently reversed into the Denson
bakkie, whilst driving a vehicle owned by Ace Hardware. Denson seeks to claim damages from
Ace Hardware for the damages to its bakkie. However, Ace Hardware believes that the notice
board indemnified it from the damage caused to the bakkie. Discuss fully and advise Ace
Hardware if it will be held liable to pay for the repairs to Denson’s bakkie. Assume that the
Consumer Protection Act 68 of 2008 does not apply to this scenario because the annual
turnover of both parties exceeds the threshold for this Act to apply. Also, do not discuss the law
of delict for this question. [20]
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QUESTION 6

Milo concluded a contract with Senzo wherein the parties agreed that Milo will build a swimming
pool for Senzo at his place of residence. The parties also agreed that after Milo has built the
swimming pool to completion, then Senzo will pay him the price agreed to, which is R100 000.
Senzo considered this a bargain since other contractors quoted him R200 000 for the same job.
After completing 90% of the work, Milo informs Senzo that he will definitely not complete the job
because his business is closing down due to the tough economic conditions that are being
experienced, and he is also unable to pay his staff their wages. Consequently, Senzo paid
Themba R25 000 to finish building the swimming pool. Senzo and his family began enjoying the
use of the pool. Senzo decides not to pay Milo because he (Milo) did not complete the job which
he was contractually obliged to do. Advise Milo on the relevant legal remedy (if any) he may
pursue against Senzo to recover payment for the work that he did. Discuss fully and refer
to case law. Note that Senzo did not commit breach of contract for refusing to pay Milo. Do not
discuss quantum meruit. Also do not discuss supervening impossibility of performance. And do
not apply the Consumer Protection Act 68 of 2008. [20]

TOTAL:[100]

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