Question $1\mathrm{.}1$: Discuss the term animus contrahendi with examples

Definition:

Animus contrahendi refers to the intention of parties to enter into a legally binding agreement. For a contract to be valid, both parties must demonstrate their willingness to create obligations enforceable by law. This intention distinguishes enforceable contracts from casual or social agreements.

Examples:

$1.$ Business Agreement: Thando and Ayanda agree to split profits from the vending machine business after covering costs. Their documented revenue$-$sharing arrangement demonstrates their clear intent to create a legal relationship.

$2.$ Lease Agreement: When Thando signs a contract with shopping malls to place vending machines, it shows animus contrahendi because both parties intend to create legally enforceable obligations regarding rent and placement.

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Question $1\mathrm{.}2$: Advise Thando on the seven essentialia of a contract

The essentialia are the necessary elements required to form a valid and binding contract under South African law.

$1.$ Agreement $($Offer and Acceptance$)$

Parties must reach consensus $($consensus ad idem$)$ on the terms.

Example: Thando and Ayanda agree on a $50/50$ profit split and document this as part of their partnership agreement.

$2.$ Capacity to Contract

Both parties must have the legal ability to enter into a contract $($e$.$g$.,$ of legal age and sound mind$).$

Example: Thando and Ayanda, as adults and business owners, have the necessary capacity.

$3.$ Lawfulness

The contract must not involve illegal activities.

Example: Selling hygiene products through vending machines complies with South African safety standards.

$4.$ Certainty

The terms of the agreement must be clear and unambiguous.

Example: The agreement specifies that operational costs will be deducted before profit$-$sharing.

$5.$ Possibility of Performance

The obligations outlined in the contract must be capable of being performed.

Example: Supplying hygiene products and managing vending machines are achievable tasks.

$6.$ Formalities

Certain contracts require specific formalities, like written agreements or signatures, to be valid.

Example: A signed lease agreement between Thando and the mall management ensures compliance.

$7.$ Consideration $($Reciprocity$)$

There must be an exchange of value between the parties.

Example: Ayanda supplies products, while Thando provides vending machines and operational management.

Would you like assistance with more examples or expanding further on this?