Contract Tutorial

1501567

Abdullah and Bonita entered a preliminary contract when they made an agreement that
Bonita will be granted the option to purchase the car from Abdullah at R100 000 and signed
an agreement, this was not a final offer as the contract was to remain opened. The offer
would come through the main contract which would be in the future when the sale offer is
made. A preliminary contract is to remain open and not revoked, meaning that Abdullah the
duty not to revoke the contract until the agreed upon date which was the 1 November at
12pm. The effects are that the parties have a duty not to frustrate or withdraw the contract,
the pre-emption contract requires a trigger event and an offer to be made in order for the main
contract to come into existence. This type of contract gave Bonita preference, it was not a
final offer rather preference to purchasing the car that would be sold and no formalities are
required in pre-emption contract (Mokone). The acceptance was received by Abdullah after
the 1st of November 12pm even though it came into his fax however when utilising the
objective test, we would state that this cannot be seen as a valid acceptance as he did not read
or receive the acceptance. In the subjective test, the fact that it was sent and received on his
fax is sufficient to make it a valid acceptance and valid offer as it was on time and could have
been read by anyone.