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Tutorial LAW299
Tutorial LAW299
Issue
1) Whether there is acceptance from Ananta regarding the counter offer from Param to buy the
bookstore for RM90.000?
Law
"when the person to whom the proposal is made signifies his assent thereto, the proposal is
said to be accepted; a proposal, when accepted, becomes a promise."
Illustration :
A offers to sell his car to B for RM50.000.
B agrees to buy it for that price. This is an acceptance.
A contract is therefore binding between them.
Exceptions
Under certain circumstances, even though there was a modification or further negotiations on
the original offer, a contract may still exist and binding upon the parties.
Illustration:
A offers to sell his car to B for RM50,000.
B agrees to buy the car, but for RM45,000
A then agrees to sell the car with that new price (RM45,000).
1) There is no valid acceptance by Ananta for the counter offer by Param to buy the
bookstore since the line was cut-off and Ananta did not make any further calls.
2) Param cannot sue Ananta if Ananta refuses to sell the bookstore because they had no
agreement. There is no communication between them.
3) There is no binding contract between Ananta and Param.
Conclusion
To conclude, acceptance only happens when there is communication between both parties.
Question 9
Issue
1)Whether the price tag of the DVD that cost RM15 saw by Lily at Topwell Shopping Centre can
be considered as valid offer ?
2)Whether Lily can sue Topwell Shopping Centre?
3)Whether there is a binding contract between them
Law
A. DEFINITION
Section 2 (a) of the Contracts Act 1950 provides:
"when one person signifies to another his willingness to do or to abstain from doing anything,
with a view to obtaining the assent of that other...he is said to make a proposal."
According to the above section, when a person promises or proposes something to another
party with the intention that his promise / proposal would be accepted by that other party, he is
said to make an offer.
The person who makes an offer is called as an offeror / promisor / proposer. The offeror /
promisor makes the offer with the intention to create a legal binding contract with the other party
(i.e. offeree / promisee / acceptor).
Illustration:
A ask B, "B, do you want to by my car for RM50,000?"
In this situation, when A ask B whether B wants to buy his car for that price, it means that A is
proposing / offering to sell his car to B, with the intention that B will agree to his proposal. A is
the offeror.
Application
1) the price tag of the DVD that cost RM15 saw by Lily at Topwell Shopping Centre cannot be
considered as valid offer. The displayed goods of a self-service shop only a invitation to treat.
2)Whether Lily cannot sue Topwell Shopping Centre for the price tag of rm15 of the original dvd.
3)there is no binding contract between them.
Conclusion
To conclude, we as a consumer must always double check if we want to buy something. We can
just ask before buying anything in order to get the best item at the best price.
Question 6
ISSUES :
1.Whether the call made by Putri Comel to withdraw her proposal to sell the boutique in Bandar Indera at
price of RM200,000 to Tengku Wira can be considered as an effective revocation of offer or not?
2.Whether Tengku Wira can sue Putri Comel if she refused to sell him the boutique in Bandar Indera at
price of RM 200,000?
3.Whether there is binding contract between Putri Comel and Tengku Wira?
LAW :
1.The call made by Putri Comel to withdraw her proposal to sell the boutique in Bandar Indera at price of
RM200,000 to Tengku Wira cannot be considered as an effective revocation of offer because Tengku Wira
had already posted his letter of acceptance of offer before Puteri Comel made a call for revocation of
offer. 2.Tengku
Wira can sue Putri Comel if she refused to sell him the boutique in Bandar Indera at RM 200,000 because
there is binding contract between them. 3.There is a
binding contract between Tengku Wira and Putri Comel once Tengku Wira had posted the letter of
acceptance on 13th June.
CONCLUSION :
To sum up, the revocation will be valid at anytime as long as the revocation has been made before the
offeree made a acceptance of offer