Doctoral Degrees (Private Law)
Permanent URI for this collection
Browse
Browsing Doctoral Degrees (Private Law) by Author "Olivier, Pierre J. J."
Now showing 1 - 1 of 1
Results Per Page
Sort Options
- ItemDie grondslag van kontraktuele gebondenheid(Stellenbosch : Stellenbosch University, 2004-04) Olivier, Pierre J. J.; Lubbe, G. F.; Stellenbosch University. Faculty of Law. Department of Private Law.ENGLISH ABSTRACT: An overview of the historical development of contract law and its underlying theory, spanning from Roman times to the present day, and in Western European and Anglo American systems, shows that the gradually developing will theory dominated in the early nineteenth century. It was, however, also in the nineteenth century that the first cracks in this theory were observed. First, sociological, political and economic factors, brought about by the Industrial Revolution, the rise of socialism and of labour, required a new, more humane approach. Secondly, with the emergence of a new economic system, new technical problems came to the fore: how were problems of mistake, interpretation, implied terms and derogation to be solved, unless reliance was placed, in each case, on untenable fictions? Thus, towards the last quarter of the nineteenth century, an intense and unparalleled juristic debate ensued, mainly in Europe, but later also in England and the United States of America. New approaches, e.g. that a strict and uncompromising declaration be followed, was proposed. The outcome of this debate was the emergence of the so-called confidence theory. The basis of this approach is that, whatever a person's real intention may have been, he so conducts himself as to lead the other party, as a reasonable person, to believe that the first party has assented to the contract as proposed or understood by the second party, the first party is bound by the impression he created. The principle was clearly stated by Blackburn J in Smith v Hughes (1871) LR 6 OB 597, which has since become one of the famous dicta in the law of contract, and forms part of the English law. It should be stressed that the Blackburn approach was not alien to Europe, where the gradual and natural development of the common law was overtaken by codification The French Codification retained the pure will theory. Under the Dutch code, the so-called will-reliance system was developed, akin to the Blackburn approach. In German law, however, the De Groot view was followed: the mistaken party was permitted to 'resile' from the 'contract' but under obligation to compensate the 'innocent' party's negative interest. In South Africa, the basic point of departure is the will theory but supplemented by the confidence theory This system is made possible by our law of procedure, where two remedies, the justus error approach and the contractual consent approach are available. As both these remedies have the same objective, viz. to protect the legitimate interests of the party that was misled, they require the same substantive law requirements. The confidence theory has imbedded itself so deeply in South African, European and English law, that it is now recognized by some as the key, not only to the solution of the dissensus problem, but also in cases of interpretation, supplementation and derogation. The combination of will and reliance are the foundation stones of contractual liability. These two principles have developed (and are still developing) from society's pre-positive, moral, ethical, political, economic, religious and other values, which have been and are still being absorbed in the body of legal rules. This process of development is informed by the norms and rules relating to public policy, public interest, the bani mores and good faith. These norms and rules are recognized and applied in the legal systems of the United States of America, England and Europe. They form part of our law, but unfortunately our courts are extremely conservative in recognizing and applying them. If we wish to obtain and sustain social and contractual justice, more weight should be accorded to these values.