George v Fairmead (Pty) Ltd 1958 (2) SA 465 (AD)

George v Fairmead (Pty) Ltd 1958 (2) SA 465 (AD)

Facts

George was a salesman for Fairmead (Pty) Ltd. One day, he was asked to sign a document that he believed was a receipt for his commission. However, the document was actually a contract of service that gave Fairmead the right to terminate George's employment at any time without notice. George signed the document without reading it carefully.

A few months later, Fairmead terminated George's employment without notice. George sued Fairmead for breach of contract. Fairmead argued that George was bound by the contract of service and that it had therefore not breached its contract with George.

Issue

The main issue in the case was whether George was bound by the contract of service, even though he had signed it without reading it carefully.

Reasons

The Appellate Division of the Supreme Court of South Africa held that George was not bound by the contract of service. The court found that George had made a justus error when he signed the document, and that he was therefore not bound by it.

Justus error

A justus error is a mistake that is made by a reasonable person in the same circumstances. The court found that George had made a justus error when he signed the document because he had believed that it was a receipt for his commission.

Consent

Consent is one of the essential elements of a valid contract. If a party to a contract makes a justus error, then they have not consented to the terms of the contract and the contract is therefore void.

Conclusion

The court held that George was not bound by the contract of service because he had made a justus error when he signed it. The court therefore granted judgment in favour of George.

Summary

The case of George v Fairmead (Pty) Ltd 1958 (2) SA 465 (AD) is a landmark case in South African contract law. The case is particularly important for its analysis of the following issues:

• The concept of justus error in contract law;
• The effect of justus error on the formation of a contract; and
• The requirement of consent in contract law.

Concept of justus error in contract law

A justus error is a mistake that is made by a reasonable person in the same circumstances. The concept of justus error is important in contract law because it protects parties to contracts from being bound by contracts that they have entered into under mistake.

Effect of justus error on the formation of a contract

If a party to a contract makes a justus error, then they have not consented to the terms of the contract and the contract is therefore void. This is because consent is one of the essential elements of a valid contract.

Requirement of consent in contract law

Consent is one of the essential elements of a valid contract. Consent means that both parties to the contract must understand and agree to the terms of the contract. If there is no consent, then there is no contract.