Eddy and Carl live in Benoni but decide to spend their December vacation at Umhlanga Rocks. Upon their arrival in Durban they hear that the beaches are closed as a result they are unable to swim. Eddy decides to stroll on the beach, while Carl went Mall hopping. Eddy finds a coin on the beach that is gold in colour. Assuming that the coin was a gold coin Eddy sells the coin for a large sum of money to Carl, who believes Eddy even after inspecting the coin. A few weeks later Carl discovers that the coin is brass and not gold as initially represented by Eddy.
1.1. What type of mistake did Eddy commit in terms of South African Law of contract? Evaluate this type of mistake. (10)
Explain whether this type of mistake may render Eddy and Carl’s contract invalid. (5)
Assess Mistake and Misrepresentation and discuss the effect each has on the validity of a contract. (10)
Carl approaches you for advice. His friend, Eddy, who also works in the legal department, has explained to him that offer and acceptance forms the foundation of any agreement and is accordingly binding on both of them. Carl is unsure of these principles and requires clarification. Evaluate offer and acceptance with Carl as it has developed in South African Common law. (10)

Distinguish between void and voidable contracts. (10)
Assess the difference between failure to comply with the terms of a contract and breach of a contract, and discuss in full the possible remedies. (10)

Write notes, explaining the various ways that a contract may be terminated. (10)
Assuming Eddy finds a small bag of eight similar brass coins but still thinks that they are gold coins. He has been advised by Carl that he can make a small fortune selling these coins on-line. Eddy decides to create a website to trade these coins on line. Since Eddy is not computer literate he approaches you to assist him with his website. Describe to Eddy the provisions of section 43 of the Electronic Communications and Transactions Act 25 of 2002, wherein there is a compulsory disclosure of 18 kinds of information to consumers on the website, you however discover that only ten applies.
Choose any ten kinds of compulsory information to be disclosed to consumers
on the websites. (10)
Since Eddy has never concluded an agreement online, explain the following terms to Eddy in respect of the conclusion of online contracts: –
“Click-wrap” (5)
“Browse-wrap” (5)

Explain “Cybercrime” to Eddy as it appears in the South African legal context. You may quote the relevant legislation.

Answers to Above Questions on Law

Answer 1: An analysis of the given scenario indicates a mistake on the part of Eddy and it is classified as a mistake of fact whereby Eddy unknowingly considered a gold looking coin as a gold coin which was later found to be made of brass. According to the South African law, the mistake identified in the form of fact may result in a contract being voidable.


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