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November 12, 2022

Carol, an owner of an exclusive bicycle shop advertised a special limited-edition bicycle for sale, and invited the public to make offers for the bicycle.

Carol, an owner of an exclusive bicycle shop advertised a special limited-edition bicycle for sale, and invited the public to make offers for the bicycle. Jane and Portia were among many other people who submitted written offers for the bicycle. Jane’s offer was for R150 000, and Portia’s offer was for R190 000. Although Carol intended to accept Portia’s offer, she erroneously wrote a letter to Jane, wherein she accepted Jane’s offer. Jane believes that an enforceable contract was formed but Carol denies this. Apply the direct reliance theory or the iustus error doctrine and advise if a legally binding contract was concluded between Carol and Jane. Discuss fully and refer to case law in your answer.

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