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SECTION A [ 1 5 MARKS ] Read the scenario below and answer ALL the questions that follow. Susan Pienaar is looking to sell her
SECTION A MARKS
Read the scenario below and answer ALL the questions that follow.
Susan Pienaar is looking to sell her house in Constantia Kloof for R million. She appoints an estate agent, Abraham
Isaacs of Isaacs Real Estate to sell the house on her behalf. Susan gives Abraham six months to find a buyer as she will
soon be emigrating to Australia to live with her three children.
Abraham Isaacs agrees and enters into a contract with Susan to sell her house on her behalf. Abraham soon finds who he
believes to be the perfect buyer for the house, Colin Xhosa.
Abraham accepts an offer from Colin for R million without consulting Susan beforehand as he believes she will accept the
offer in any event. Colin does not know that Susan, the seller, is unaware of Abrahams acceptance of Colins offer.
Colin is very happy, as he believes he has scored a deal and just bought his dream home. Susan is not happy with
Abrahams actions, but she is also very anxious to sell her home quickly and emigrate as soon as possible. QUESTION Marks
Assume that Susan, the seller, is approached directly by Colin. She asks Colin to speak to Abraham her agent to
finalise the sale of the house and agree on a purchase price. However, in the interim, Susan receives a higher
offer and agrees to sell the house to another third party, Hayley Bekker, for the higher price of R million.
Abraham and Colin are both unaware of Susans actions.
When Colin becomes aware of this, he confronts Susan and she denies that Abraham ever had authority to act
on her behalf. She tells him He was never my agent!
Can Colin rely on the remedy of estoppel to secure the purchase of the house and prevent Susan from denying
that she did not accept the offer of R million? Support your answer. Make reference to the case study above.
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