Witwatersrand

LAWS 1000

Part 1 of 1 - 22.0/ 30.0 Points
Question 1 of 2
13.0/ 15.0 Points
QUESTION 1
Sammy is very upset, as her child left the front gate to her property open; and her dog, YapYap, ran away. She immediately printed posters with a photo of her beloved dog, and wrote
her telephone number on the posters, with the words “Reward of R1 000 to the person who
returns Yap-Yap to me.” Bella, a student who lives down the road, spotted a dog that looks
like a stray whilst on her way to university. She picked up the dog, and took it to the nearest
vet, who confirmed that the dog is Yap-Yap, as he (Yap-Yap) had an identification chip
implanted, which also listed Sammy’s details. Bella returned Yap-Yap to a delighted Sammy,
who thanked her profusely. As Bella drove away, she saw Sammy’s poster with details of the
reward on a lamppost. Bella drives back to Sammy, and asks for the R1 000 reward. Sammy
refuses to pay Bella. Bella is furious, as she went to all the trouble to have Yap-Yap
identified, and now Sammy is not keeping to her word.
1.1 Discuss whether the poster with details of the reward constitutes an offer or invitation to
do business. In substantiating your answer, refer to all relevant sources of law, including case
law. (5 marks)
1.2 Outline the requirements for a valid acceptance, and advise Bella on whether she can
legally claim the reward of R1 000 from Sammy. In substantiating your answer, refer to all
relevant sources of law, including case law. (10 marks)
(Total marks for Question 1: 15 marks)
1.1
Issue:
Does the poster constitute as an offer or an invitation to do business?
Principle:
In certain circumstances, an advertisement can constitute an offer. Subject to the nature of the
advertisement, the wording and all surrounding circumstances.
Carlill v Carbolic Smoke Ball Co.
Facts:
Carbolic Smoke Ball Co. issued an advertisement stating that it would compensate any individual who
contracted influenza after using their product as instructed.
Court findings:
The court held that, in this case, the advertisement constituted as an offer and not merely an
invitation to do business.
Court reasoning:
An extract from the advertisement that stated that an amount of £1000 had been deposited with the

Application:
In this case the advertisement, Sammy’s poster, does not qualify merely as an invitation to the public
to do business. The advertisement contains the statement, ‘Reward of R1000 to the person who
returns Yap-Yap to me’. This is an evident indication to the public that the terms outlined by the
poster were to be recognised as a firm declaration of an offer that could be accepted by anyone.
Conclusion:
The poster constitutes as an offer made by Sammy, to any individual who met the requirements. By
performing the terms in response to the advertisement, that individual is entitled to a reward of
R1000.
1.2