Module Guide

Faculty Commerce and Law

Module Code LWCTA3-B11 Module Name Law of Contract
NQF Level 7 Credit Value 12
Block 1 2021 Year Level 3
Module Leader Blessing Mukwehwa Copy Editor Richard Dunningham
Practical Hours N/A Tutorial Hours N/A
Prerequisites /
Notional Hours 120 LWITA1, LWITB1
Corequisites

The module guide must be read in conjunction with the prescribed textbook. This document will
be the first port of call to understanding what will be assessed and which assessments form part
of the module.

The purpose of the module guide is to highlight:

• The learning outcomes and assessment criteria that need to be met to pass the module
• The assessments required to be completed for the module
• The additional resources required for the module
• The topics that will be focused on for the module

Module Aim
Welcome to the Law of Contract. Contract law is an exciting, complex field of law that requires a
sound understanding of the principles which need to be applied in a variety of practical cases.
Contract law is used often in everyday life, instances of which include daily interactions with taxi
drivers, shopkeepers, bank tellers, mobile phone providers, as well as at the gym. Of course,
contracts are also widely used in commercial business transactions, employment, sports etc.
Contracts differ greatly in form, substance and content, and there are different types of contracts
for different industries in the workplace.
A law student must be able to understand the concept of a contract, as well as the surrounding
facts of a given scenario in order to bring a legal solution to the problem at hand. This is
sometimes difficult to do if practical experience is missing. However, this year, with an in depth
look at theory as well as practical case studies, contract law should prove to be both exciting and
relevant in the workplace. It is an integral part of everyday life.
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Pearson Institute of Higher Education is registered with the Department of Higher Education and Training as a private higher education institution
under the Higher Education Act, 101, of 1997. Registration Certificate number: 2001/HE07/008. (Formerly Midrand Graduate and CTI Education
Group).
This module is aimed at giving students an insightful approach to and detailed knowledge of the
Law of Contract in South Africa. After the completion of this module you will be able to analyse
legal problems pertaining to contract law, and solve them accordingly with reference to
contractual principles and case law.

Module Description
This module will explore the different requirements for a valid contract. It will further investigate
different aspects relating to general contractual terms and finally determine when a contract is
breached and which remedies can be utilised.

Learning Outcomes
By the end of this module, you will be able to:
Learning Outcomes
1. Analyse and evaluate contractual
concepts based on the Constitution,
legislation, common law and case
law.
2. Identify and apply the requirements
of a valid contract to a set of facts.
Assessment Criteria
1.1 Analyse the general nature and place of
contract law in the legal system.
1.2 Investigate the cornerstones of contract law.
1.3 Identify and explain the basic concepts and
terminology in a contract.
1.4 Evaluate the impact of the Constitution on the
Law of Contract.
2.1 Discuss the nature and characteristics of
consent as a contractual requirement.
2.2 Examine factors that may influence
consensus between contractual parties.
2.3 Discuss contractual certainty as a contractual
requirement.
2.4 Examine possibility of performance as a
contractual requirement.
2.5 Investigate formalities as a contractual
requirement.
2.6 Make an in-depth study of legality as a
contractual requirement, and analyse the
impact of the Constitution on contractual
principles relating to legality.

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3. Investigate the obligations (rights
and duties) created by contract.
4. Identify the legal consequences that
follow when a contractual party fails
to honour his/her obligations under
a contract.
5. Investigate the transfer and
extinction of contractual obligations.
6. Analyse a set of facts, identify legal
issues and apply contractual
principles to solve practical
problems in a critical legal manner.
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2.7 Analyse a set of facts and solve legal
problems pertaining to the requirements of a
valid contract.
3.1 Examine the different contractual terms
making up the content of a contract.
3.2 Distinguish between the different parties to a
contract and the obligations binding on such
parties.
3.3 Analyse a set of facts and solve legal
problems pertaining to the content of a
contract.
4.1 Identify the different forms of breach of
contract.
4.2 Analyse a set of facts and solve legal
problems pertaining to breach of contract.
4.3 Identify and discuss the different contractual
remedies for breach, aimed at either
fulfilment of the contract or at termination of
the contractual relationship.
4.4 Analyse a set of facts and solve legal
problems pertaining to the applicable
remedies available when a contractual party
defaults.
5.1 Discuss the legal nature of cession and its
consequences.
5.2 Explore the different ways in which
obligations are extinguished.
5.3 Analyse a set of facts and solve legal
problems pertaining to the transfer and
extinction of a contractual obligation.
6.1 Demonstrate, through the analysis of case
studies, the range of skills necessary in the
solving of legal problems.
6.2 Demonstrate the ability to solve legal
problems.
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 6.3 Demonstrate the ability to identify and solve
legal principles in formative and summative
assessments.

Prescribed Resource(s)
Textbook(s)
Bhana, D.; Bonthuys, E. and Nortje, M. 2015. Students’ Guide to the Law of Contract 4th ed.
Claremont: Juta.
Print ISBN: 9781485108894
eBook ISBN: 9781485109297

Legislation
The Constitution of the Republic of South Africa, 1996.
Alienation of Land Act 68 of 1981.
Consumer Protection Act 68 of 2008 (CPA).
Electronic Communications and Transactions Act 25 of 2002. (ECTA).
National Credit Act 34 of 2005 (NCA).
Suretyship (General Law Amendment Act 50 of 1956).

Online Journal Article(s)

Stoop, P. 2009. “SMS and E-Mail Contracts: Jafta v Ezemvelo KZN Wildlife.” SA Merc LJ. 21,
110 – 125. [Online] Available at: http://www.academia.edu [Accessed: 28 September 2020].

Mupangavanhu, Y. 2014. “Exemption Clauses and the Consumer Protection Act 68 of 2008: An
Assessment of Naidoo v Birchwood Hotel 2012 6 SA 170 (GSJ).” PER / PELJ. Vol 17, No. 3
[Online] Available at: http://www.ajol.info, [Accessed: 28 September 2020]
Prescribed Case Law
Case law is discussed in the prescribed textbook, but you are encouraged to enrich your
knowledge by reading case law where relevant.

You must consult myLMS on a regular basis in this regard.

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 Study Units as per Module
Content Schedule:
Contractual concept and the
cornerstones of contract law.
AC: [1.1 – 1.4]
The difference between valid,
void and voidable contracts and
the three requirements for a valid
agreement.
AC: [2.1, 2.7]
Consensus: Offer, acceptance
and termination of an offer.
AC: [2.1, 2.7]
Theories used when determining
the time and place of the
conclusion of a contract.
AC: [2.1, 2.7]
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Case Law
Special emphasis must be placed on the following
case law:
Brisley v Drotsky 2002 (4) SA 1 (SCA).
Napier v Barkhuizen 2006 (4) SA 1 (SCA) and
Barkhuizen v Napier 2007 (5) SA 323 (CC).
Wessels v Swart NO 2002 (1) SA 680 (T).
Church of the Province of South Africa,
Diocese of Cape Town v CCMA 2002 (3) SA 385 (LC).
Roshcon (Pty) Ltd v Anchor Auto Body
Builders CC 2014 (4) SA 319 (SCA).
Gelbuild Contractors CC v Rare Woods (Pty) Ltd 2002 (1)
SA 886 (C).
Crawley v R 1909 TS 1105.
Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 (CA).
Bloom v American Swiss Watch Co 1915 AD 100.
Gaap Point of Sale v Valjee 2011 (6) SA 601 (KZD).
Union Spinning Mills (Pty) Ltd v Paltex Dye House (Pty)
Ltd 2002 (4) SA 408 (SCA).
Cape Explosives Works Ltd v SA Oil and Fat Industries
Ltd 1921 CPD 244.
A to Z Bazaars (Pty) Ltd v Minster of Agriculture 1975 (3)
SA 468 (A).
Jafta v Ezemvelo KZN Wildlife [2008] 10 BLLR 954 (LC).
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 Hirschowitz v Moolman 1985 (3) SA 739 (A).
Pacta de contrahendo.
Associated South African Bakeries (Pty) Ltd v Oryx &
AC: [2.1, 2.7]
Vereinigte Backereien (Pty) Ltd 1982 (3) SA 893 (A).
Khan v Naidoo 1989 (3) SA 724 (N).
Dickenson Motors (Pty) Ltd v Oberholzer 1952 (1) SA 443
(A).
Diedericks v Minister of Lands 1964 (1) SA 49 (N).
Allen v Sixteen Stirling Investments (Pty) Ltd 1974 (4) SA
164 (D).
Sonap Petroleum SA (Pty) Ltd v Pappadogianis 1992 (3)
SA 234 (A).
National and Overseas Distributors Corporation (Pty) Ltd
v Potato Board 1958 (2) SA 473 (A).
Factors that may influence Steyn v LSA Motors Ltd 1994 (1) SA 49 (A).
consensus between parties: Brink v Humphries & Jewell (Pty) Ltd 2005 (2) SA 419
Mistake / Error. (SCA).
AC: [2.2, 2.7] Bhikhagee v Southern Aviation (Pty) Ltd 1949 (4) SA 105
(E).
George v Fairmead (Pty) Ltd 1958 (2) SA 465 (A).
Slip Knot Investments 777 (Pty) Ltd v Du Toit 2011 (4) SA
72 (SCA).
Afrox Healthcare Bpk v Strydom 2002 (6) SA 21 (SCA).
Mercurius Motors v Lopez 2008 (3) SA 572 (SCA).
King’s Car Hire (Pty) Ltd v Wakeling 1970 (4) SA 640 (N).
Qing-He-Shan v Tsogo Sun Holdings 2004 JDR 0607 (T).
Durban’s Water Wonderland (Pty) Ltd v Botha 1999 (1)
SA 982 (SCA).
Feinstein v Niggli 1981 (2) SA 648 (A).
Phame (Pty) Ltd v Paizes 1973 (3) SA 397 (A).
Misrepresentation on the validity
Dibley v Furter 1951 (4) SA 73 (C).
of a contract.
Lourens v Genis 1962 (1) SA 431 (T).
AC: [2.2, 2.7]
Bayer SA (Pty) Ltd v Frost 1991 (4) SA 559 (A).
Du Toit v Atkinson Motors Bpk 1985 (2) SA 893 (A).

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Duress on the validity of a
contract.
AC: [2.2, 2.7]
Undue influence on the validity of
a contract.
AC: [2.2, 2.7]
Statutory and common law
formalities as a contractual
requirement.
AC: [2.5, 2.7]
The requirement of legality and
the limits it imposes on what
parties can validly contract about.
AC: [2.6 – 2.7]
Different ways in which terms can
be incorporated into a contract.
AC: [3.1, 3.3]
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Broodryk v Smuts NO 1942 TPD 47.
Blackburn v Mitchell (1897) 14 SC 338.
Medscheme Holdings (Pty) Ltd v Bhamjee 2005 (5) SA
339 (SCA).
BOE Bank Bpk v Van Zyl 2002 (5) SA 165 (C).
Patel v Grobbelaar 1974 (1) SA 532 (A).
Preller v Jordaan 1956 (1) SA 483 (A).
Johnston v Leal 1980 (3) SA 927 (A).
Spring Forest Trading 599 CC v Wilberry (Pty) Ltd t/a
Ecowash (725/13) [2014] SASCA 178.
SA Sentrale Ko-op Graanmaatskappy Bpk v Shifren 1964
(4) SA 760 (A).
Brisley v Drotsky 2002 (4) SA 1 (SCA).
Pottie v Kotze 1954 (3) SA 719 (A).
Cool Ideas 1186 CC v Hubbard 2014 (4) SA 47 (CC).
Metro Western Cape (Pty) Ltd v Ross 1986 (3) SA 181
(A).
Henry v Branfield 1996 (1) SA 244 (D).
Barkhuizen v Napier 2007 (5) SA 323 (CC).
Afrox Healthcare Bpk v Strydom 2002 (6) SA 21 (SCA).
Maseko v Maseko 1992 (3) SA 190 (W).
Brisley v Drotsky 2002 (4) SA 1 (SCA).
Johannesburg Country Club v Stott 2004 (5) SA 511
(SCA).
Magna Alloys & Research (SA) (Pty) v Ellis 1984 (4) SA
874 (A).
Basson v Chilwan 1993 (3) SA 742 (A).
Reddy v Siemens Telecommunications (Pty) Ltd 2007 (2)
SA.
Jajbhay v Cassim 1939 AD 537.
Bertelsmann v Per 1996 (2) SA 375 (T).
Wilkins v Voges 1994 (3) SA 130 (A).
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Special contractual terms in
general and the rules and
principles that govern
exclusionary clauses in particular. Durban’s Water Wonderland (Pty) Ltd v Botha 1999 (1)
AC: [3.1, 3.3]
Breach of contract and the legal
principles that govern each type
of breach.
AC: [4.1 – 4.2]
Contractual remedies.
AC: [4.3 – 4.4]
FNB v Rosenblum 2001 (4) SA 189 (SCA).
Elgin Brown & Hamer (Pty) Ltd v Industrial Machinery
Suppliers (Pty) Ltd 1993 (3) SA 424 (A).
Afrox Healthcare Bpk v Strydom 2002 (6) SA 21 (SCA).
Naidoo v Birchwood Hotel 2012 (6) SA 170 (GSJ).
SA 982 (SCA).
Johannesburg Country Club v Stott 2004 (5) SA 511
(SCA).
Scoin trading (Pty) Ltd v Bernstein NO 2011 (2) SA 118
(SCA).
Nel v Cloete 1972 (2) SA 150 (A).
Transnet Ltd t/a National Ports Authority v Owner of MV
Snow Crystal 2008 (4) SA 111 (SCA).
Ranch International Pipelines (Transvaal) (Pty) (Ltd) v
LMG Construction (City) (Pty) Ltd 1984 (3) SA 861 (W).
Benjamin v Myers 1946 CPD 655.
B K Tooling (Edms) Bpk v Scope Precision Engineering
(Edms) Bpk 1979 (1) SA 391 (A).
Haynes v Kingwilliamstown Municipality 1951 (2) SA 371
(A).
Benson v SA Mutual Life Assurance Society 1986 (1) SA
776 (A).
Botha v Rich NO 2014 (4) SA 124 (CC).

The following resource(s) will be made available on myLMS, which you must check regularly:
• Module guide
• Assessments
• Blended learning items
• Important notifications from your lecturer
• Module announcements (discussion forums)
• Links to lectures and lecture recordings

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Recommended Resource(s)
Take note that all disciplines and their corresponding textbooks are frequently updated.
Therefore, you should use the latest editions, where available. Recommended resources should
be used for research purposes. There is a range of resources related to this module, including
the following:

Textbook(s)
Hutchison, D., et al. 2017. The Law of Contract in South Africa. 3rd ed. Cape Town: Oxford
University Press.

Van der Merwe, S.W.J., et al. 2012. Contract: General Principles. 4th ed. Cape Town: Juta.

Recommended reading is not examinable unless indicated otherwise.

Online Document(s) and Journal Article(s)

Where relevant, online articles will be made available on myLMS during the course of the
semester to enrich your learning.

Website(s)
Web pages provide access to a further range of internet information sources. Lecturers may
download the web-related material for you to access offline. You must use this resource with
care, justifying the use of information gathered.

SAFLII: Southern African Legal Information Institute. [Online] Available at: http://www.saflii.org/.
[Accessed: 28 September 2020].

Supporting Document(s)
Geyer, L., Levin, A., Makati, P., Pierce, R., Potter, M., and Wheeler, A. 2019. PIHE Guide to
Referencing (Harvard Referencing Method). Unpublished document. Pearson Institute of Higher
Education.

Essential Requirements
• Access to the institution’s Learning Management Systems (myLMS) to access all study
material.

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• Access to Microsoft Teams to attend online lectures and consultations.
• Access to a resource centre or an online library with a wide range of relevant resources
including textbooks, newspaper articles, journal articles, organisational publications, and
databases.
• Access to a range of academic journals in electronic format via ProQuest or other databases.

Formative Assessment(s)
Assessments will take place continually throughout the block(s) to evaluate your progress
throughout the module.

Continuous assessment = Summative assessment (national) + Formative assessment (national)

+ Lecturer assessment (campus)

You may be required to complete some assessments online on myLMS. The following guidelines
may apply:
• You may be required to write an online assessment directly on myLMS. You will need to log in
at a specified time to attempt the assessment. Once the allocated time expires, the
assessment will no longer be available to complete.
• Time limits should be checked before commencing assessments. Refer to the Details of
Assessments table of this module guide.
• Ensure that your internet connection is stable.
• In some cases, assessments will not be available indefinitely and will be available for only a
day or two.
• The marks for some assessments may only be available after all students have attempted the
assessment after the assessment due date.

It is the students’ responsibility to retrieve their assessment feedback and verify their marks on
the day they are released. No adjustment of marks will be entertained beyond one week after
marks were released.

Take Home Test

There will be one theoretical test for the module, which will count 30% towards your final mark for
this module.

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If an assessment is missed because of illness, a doctor’s note must be presented within 3
business days of the missed assessment to the academic admin
manager/administrator/coordinator.

To make up for this missed assessment, you may be able to attempt a deferred assessment.
However, in order to gain entry to this assessment, you will have to follow various procedures
and meet certain criteria. You must complete a Deferred Assessment Application Form available
on myLMS. You will be required to pay a non-refundable fee per application. Each assessment
missed requires a separate application. This will be your only opportunity to make up for a
missed assessment.

Quiz
There will be two online quizzes which contribute 10% towards your final mark. These online
quizzes are scheduled to take place in week 2 and 5 and will cover the following work:
Online quiz 1 – all the work done in week 1 and 2.
Online quiz 2 – work done in week 3 and 4.
The online quizzes will be made available on the myLMS general page and are to be completed
individually. Each quiz is timed for 45 minutes and will be available for 3 days. Once you begin
the assessment, you must complete it within the time provided. The quiz cannot be saved
halfway, and must be completed and submitted for grading. No late submissions will be tolerated.
It is the your responsibility to check myLMS consistently so that you do not miss the deadline.

Lecturer Assessments (previously known as lecturer continuous assessments)

Continual lecturer assessments are conducted so that you are given feedback on your progress
in the achievement of specific learning outcomes. These assessment tasks may take the form of
one of the following:
• A five-item multiple-choice test
• A short-questions test
• Construction of concept maps
• Take-home tests with long questions
• Short practical tasks
• Short class presentations

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Summative Assessment(s)
Take Home Assessment
There will be an open book/Take Home assessment. The Take Home Assessment is an
individual assessment which must be completed within 48 hours and submitted through Turnitin.

Each summative assessment will have a sub-minimum requirement of at least 40%.

Supplementary opportunities may be available for selected assessments (refer to assessment
details table) for students who fail the summative assessment(s); and these will cover the entire
module content. This will be scheduled in the allocated weeks as per the academic year calendar
and may be in the form of a re-submission opportunities for modules with a single summative
project.

Plagiarism
All assignments and reports must be submitted to the online similarity checker (Turnitin) available
on myLMS prior to being submitted for marking. When submitting your assignment/report, it is
compulsory to submit the entire Turnitin report. Marks will be deducted in accordance with the
institutional policy.

Also, when submitting assessments, you should include the applicable completed and signed
assessment coversheet as an acknowledgement that the work submitted is your own original
work, except for source material explicitly acknowledged. This declaration will serve as proof that
you are aware of the Institution’s policies and regulations on academic integrity.

Final Mark
In order to pass the module a final average of 50% or higher is required for the entire module.
No subminimum will be required in the final-take home test.

The final mark is calculated as follows:

Final Mark [(Lecturer Assessment percentage × 0.10) + (Test percentage × 0.30) +

(Online/Study Manual Quiz × 0.10)] + [(Take Home Assessment percentage × 0.50)]

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Details of Assessments
Block 1
Methods of Assessment Weighting1 Submission Date(s)
08/04/2021 – 10/04/2021
Take Home Test Scope of coverage: Weeks 1 – 3
Duration of timed assessments: 48 Hour(s)
30%
20/04/2021 – 22/04/2021
Deferred Take Home Test Scope of coverage: Weeks 1 – 3
Duration of timed assessments: 48 Hour(s)
24/03/2021 – 26/03/2021
Online/Study Manual Quiz 1 Scope of coverage: Weeks 1 – 2
Duration of timed assessments: 45 Minutes
10%
14/04/2021 – 16/04/2021
Online/Study Manual Quiz 2 Scope of coverage: Weeks 3 – 4
Duration of timed assessments: 45 Minutes
Lecturer will stipulate the date(s) of these
Lecturer assessment 10%
assessments and scope of coverage.
28/04/2021 – 30/04/2021
Take Home Assessment 50% Scope of coverage: Weeks 1 – 6
Duration of timed assessments: 48 Hour(s)
03/05/2021 – 05/05/2021
Deferred Summative
50% Scope of coverage: Weeks 1 – 6
Opportunity
Duration of timed assessments: 48 Hour(s)
Supplementary 17/05/2021 – 21/05/2021
50%
Opportunity Scope of coverage: Weeks 1 – 6
All formative marks submitted 07/05/2021
All formative marks captured 10/05/2021

Consultations
Lecturers will be available for consultation. Specific details in this regard will be made available
on your campus specific myLMS pages. You must give lecturers 24 hours’ notice for

1 Refer to the Conditions of Enrolment, available on myLMS.

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appointments. Consultation meetings can be requested via email. It is important that you detail
the requirements (chapter, section, etc.) for your consultation.

Module Content
You are required to attend all lessons. In addition, exercises and activities, which are supplied by
lecturers, are compulsory.

Continuous assessments may run throughout the block.

Block 1
Topics and
Lecture
Assessment Criteria Assessments References
Weeks
Covered
Welcoming Introduction
to the law of contract.
AC: 1.1 – 1.4.
• Chapter 1
Agreement: • Par 1 – 4
1
Requirements for the
15/03/2021 –
formation of a valid • Chapter 3
19/03/2021
contract. • Par 1 – 2
AC: 2.1, 2.7. • Par 3.2

Agreement: Offer
AC: 2.1, 2.7.
Agreement:
Acceptance.
• Chapter 3
AC: 2.1, 2.7.
2 • Par 4
23/03/2021 – Online Quiz 1
Agreement: Time and
26/03/2021 • Chapter 10
place of the contract.
• Par 1 – 4
AC: 2.1, 2.7.

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 Agreement: Pacta de
contrahendi.
AC: 2.1, 2.7.

Agreement: Mistake.
AC: 2.2, 2.7.
Agreement: Introduction
to void and voidable
contracts.
AC: 2.2, 2.7. • Chapter 11
• Par 1
3
Improperly obtained
29/03/2021 –
consensus:
01/04/2021
Misrepresentation, • Chapter 11
Duress and Undue Par 2 – 5
influence and the
influence of the CPA.
AC: 2.2, 2.7.
• Chapter 4
• Par 2
Certainty, Possibility,
• Par 3.1 – 3.2
Contractual Capacity
• Par 4 – 5
and Formalities
AC: 2.3 – 2.5, 2.7.
4 • Chapter 8
Take Home
06/04/2021 – • Par 6.2.1
Legality. Test
09/04/2021
AC: 2.6 – 2.7.
• Chapter 12
• Par 2.7
Test
AC: 6.1 – 6.2
• Chapter 5
Par 1 – 4
5 Content of a Contract: • Chapter 6
12/04/2021 – Incorporation of terms; Online Quiz 2 • Par 1 – 5
16/04/2021 Interpretation of • Par 7

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 contractual terms and
rectification. • Chapter 7
AC: 3.1, 3.3. • Par 1 – 5

Parties to a contract. • Chapter 8

AC: 3.2 – 3.3 Par 1 – 4

Breach of contract.
AC: 4.1 – 4.2.
Contractual remedies.
AC: 4.3 – 4.4.

• Chapter 9
Transfer of obligations:
6 • Par 1 – 7
Cession; delegation; Deferred Take
19/04/2021 –
assignment. Home Test
23/04/2021 • Chapter 12
AC: 5.1, 5.3.
Par 1 – 2

Extinction of obligations.
AC: 5.2 – 5.3.
Revision class
7
Take Home
26/04/2021 – (Final formative Week 1 – 6
Assessment
30/04/2021 assessment)
AC: 6.1 – 6.3
8 Outstanding lecturer Deferred Take
03/05/2021 – assessments and Home
07/05/2021 marking Assessment
07/05/2021 All Formative Marks Submitted
10/05/2021 All Formative Marks Captured
17/05/2021 –
Supplementary Opportunity
21/05/2021
24/05/2021 Block 2 Teaching Period Continues

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