4 y and z concluded a pre emption contract 5 2 and 3

4 Y and Z concluded a pre-emption contract. 5 2 and 3. (1)
Answer 5.
Discussion
Contracting parties may enter into an agreement in terms of which the offeror undertakes not to
revoke his or her offer. In such a case, it is said that one party grants the other an option (Study Guide
26-27). For this question, an option does not exist because there is no agreement in place which binds
Y to keep his offer open until 30 August. Y has unilaterally imposed this upon himself in the offer, but
it was certainly not an agreement by both parties to hold Y to his offer to keep it open until this date.
This means that no option contract was concluded. A right of pre-
emption also does not exist. A right of pre-emption occurs when a prospective seller undertakes
as against a prospective purchaser to give the prospective purchaser preference if the
prospective seller should decide to sell. The prospective purchaser thus acquires in terms of an
agreement the right to be granted the first opportunity to buy the thing should the prospective seller
decide to sell (Study Guide 31-32). Therefore no right of preference was created in an agreement in
this question. In summary, no option or pre-emption contract exists between both parties.
10
Question 9
A right of pre-emption 1 is a right acquired by a contract.
2 is a right acquired by an offer.
3 is a right acquired in terms of an option. 4 is a preferential right entitling the grantee to compel the
grantor to sell the thing in question at anytime. 5 encapsulates all of the above statements. (1) Answer
1.
Discussion

A right of pre-emption occurs when a prospective seller undertakes as against a prospective
purchaser to give the prospective purchaser preference if the prospective seller should decide
to sell. The prospective purchaser thus acquires, in terms of an agreement (or contract), the right to
be granted the first opportunity to buy the thing should the prospective seller decide to sell (Study
Guide 31-33). Therefore a contract is required to create a right of pre-emption, and
not just an offer. Note also that in terms of a right of pre-emption the grantor cannot be
compelled to sell at anytime, it is only when the grantor decides to sell at his or her discretion,
that the prospective purchaser has a right to have the first opportunity to buy the thing. A right of
pre-emption is not acquired in terms of an option. These two types of rights differ by definition.
See the discussion in question 8 regarding the definition of the latter. Question 10 Y lets premises to
X. The lease contains a clause prohibiting X from sub-letting the premises without the written consent
of Y. A further clause of the lease requires that any variation of the terms of the lease (including this
clause) has to be in writing and signed by both parties. Later Y
and X agree orally that X can sub-let the premises. After X has sub-let the premises to a third party, Y
changes his mind and informs X that both X and the sub-lessee (third party) should vacate the premises