2.3 HISTORY OF THE LAW OF CONTRACT The freedom to contract reflected laissez fair dogma which was the unfettered right to contract.87 The Roman-Dutch Law, was introduced by Dutch settlers into the South African’s legal system.88 The South African law of contract originated from Roman jurists Justinian Institutes89 classification of law of obligations under private law, and forms the basis for the modern law of contract.90 The legal duty attached to an obligation originally stemmed from contracts entered into between Romans and aliens, and ultimately, Roman-Dutch Law recognised a contract as a legally enforceable agreement.91 An obligation is referred to as a legal bond, that is, vinculum iuris, which is formed by parties, 92 in terms of which the debtor is bound to render a performance to the creditor,93 attaching legal consequences in the form of the right to claim performance and the duty to perform.94 In the case of Meskin v Anglo American Corporation of South Africa Ltd,95 it was held that an obligation amounts to the one that is regulated by law. 2.3.1 An overview of the definition of a contract The law of contract is significance to commercial activity,96 as the business of buying and selling revolves around it.97 It governs an agreement between the parties, and provides for remedies in case of breach.98 The courts enforce contracts that are entered into with the intention to create contractual obligations.99 The basic task of a 87 Kumar, U. (1985) “Freedom of contract and the run-away exemption clauses: a plea for legislative reforms” 2 LLJ 251; Van der Merwe (2008: 147). 88 Sharrock (2011: 27). 89 Christie, RH. (2001) “The law of contract in South Africa” 3. 90 Christie (2001: 4). 91 Joubert, DJ. (1987) “General principles of the law of contract” 11 -14. 92 Kerr, AJ. (2002) “The principles of the law of contract,” 6 th ed, 3. 93 Sharrock (2011: 2); Van Der Merwe, D. (2003) “Contract general principles,” 2 nd ed, 1. 94 Fouché, MA. et al. (1999) “The legal principles of contracts and negotiable instruments,” 5 th ed, 34. 95 Meskin v Anglo American Corporation of South Africa Ltd 1968 (4) SA 793. 96 Christie (2001:1). 97 Mahler-Coetzee, J. (2010) “Law lifeline: Law of Contract” 1. 98 Gibson, JTR. (1997) “South African Mercantile and Company Law” 9. 99 Christie (2001: 9). 11