Question

principles of business law

Question 1 (a) John is married to Maria. Sarah promises to pay John R50 000 if he divorces Maria and marries her. John agrees and Sarah pays him the money. John later refuses to divorce his wife and also refuses to return the money. Advise Sarah. Briefly discuss the circumstances under which a newspaper advertisement may constitute a valid offer. (b) (c) Name five requirements for a valid contract. (d) When are damages awarded for breach of contract? (e) Explain, using examples, the difference between a void and a voidable contract. Jenny checks into a hotel and signs the register. She goes to her room, hurriedly drops her luggage off and goes on a sightseeing tour. When she returns she discovers that her purse and travellers cheques have been stolen from her case. She wants to hold the hotel liable for the theft. The hotel manager brings her attention to a large, bold print notice behind the door of her hotel room excluding the hotel's liability for loss or damage to property of a hotel guest. Discuss Jenny's legal position.

Answer 1

Answering the first 4 questions as HOMEWORKLIB Guidelines:

a) John is married to Maria. Sarah promises to pay John 50000 if he divorces Maria and marries her, John agrees and Sarah pays him the money. John later refuses to divorce his wife and also refuses to return the money. For a marriage contract to be valid, both the involved parties must have the capacity to marry each other. In this case, however, the contract is illegal or contra bonos mores as it was against ethics and morality. Hence, Sarah does not have any right to sue John.

b) Mostly the advertisements in the newspaper are an invitation to treat. An advertisement published by the newspaper can be considered as an offer if the advertisement offers something in consideration to the person, who fulfills the condition of the advertisement. For example: For a lost person’s advertisement, an offer of $500 is made to anyone who shares valid leads about him or her. In this case, the offer becomes a unilateral contract and gets bound by law.

c) A contract can be considered valid if it has the following components:

• Offer
• Acceptance
• Intention to create legal relationship between the involved parties
• Consideration
• Competency and capacity

If the contract is valid, then it can be legally enforced.

d) Damages are awarded for breach of contract when it has been proved that it was a valid contract and can be legally enforced. In such a case, if the involved party fails to perform his or her duty, then the contract is considered to be violated and damages get awarded.