Imagine the following scenario: You are the sole owner of a property in Camps Bay, Cape Town.

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Question:

Imagine the following scenario: You are the sole owner of a property in Camps Bay, Cape Town. You are married (out of community of property) to your spouse, B. This property is not your main place of residence and you only visit it occasionally. You decided to sell the house for R20 million and started advertising the property on social media platforms.

On 1 May 2023, an interested buyer (Athol) knocked on the door of your property in Camps Bay. Coincidentally your partner was at the house (you were in Italy), and Athol spoke to your partner. Athol offered to buy the house for R15 million in cash. Your partner immediately accepted his offer. In the meantime, you received an email offer in which Dudu offered R18,5 million for the house. You indicated to Dudu that you accepted his offer and sent a contract of sale to Dudu to sign. Dudu signed it on 2 May 2023 and returned it via email, immediately effected an EFT in the amount of R18,5 million to your bank account, and indicated that the original contract would be couriered to your house.

Although you are not a lawyer, nor have you completed your MBA yet, you have a legal background in the law of contract. Please indicate how you would approach the following problems:

3.1 Explain (in the necessary detail) to Athol whether he concluded a valid contract of sale to purchase the property. (5)

3.2 After Athol spoke to your partner on 1 May, your partner left the house and returned to your primary residence in Great Constantia. At 23:30 on the night of 1 May, a freak storm destroyed your property. Neither you nor Athol knew about this. On 2 May, after Dudu sent you the contract and effected the EFT, he drove to Camps Bay to admire his new house just to discover that nothing was left of it – except for the welcome mat. Dudu was furious and wanted to cancel the agreement immediately. You, however, have already started spending the money you received for the house by buying a Range Rover as well as a new property.

Explain to your partner, B, whether you are guilty of breach of contract. (4)

3.3 Suppose that a storm did not destroy the property in Camps Bay. Also, assume that Dudu only sent you the signed contract and requested you to provide him with your banking details. You decided not to accept the R18,5 million payment from Dudu because you did not want to upset your partner. You figured that you could re-negotiate with Athol to buy the property for R18 million (and keep your partner happy). You, therefore, provided the incorrect banking details to Dudu to buy some time. Indicate whether this may be regarded as a breach of contract and, if so, discuss the type of breach it would be. (6)