Oct 30, 2007

Business Law Tutorial 3

Suggested Answers

1.An offer is defined in Section 2(a) of Contracts Act, 1950 as an undertaking by the offeror to be contractually bound in the event of a proper acceptance by the offeree. An offer must be clear, definite, and certain- White v. Bluett. According to Section 4(1) of Contracts Act, 1950 , an offer must be communicated- Taylor v. Laird. An invitation to treat is inviting the public to make an offer. Advertisement, display of goods, and self-service shops are examples of invitation to treat.

2.It depends on the intention of the parties when they enter into a contract- Majumder v. Attorney-General of Sarawak. Bilateral advertisement is not an offer but an invitation to treat-Harris v. Nickerson; unilateral advertisement is an offer-Carlill v. Carbolic Smoke Ball Co.

3.Offer, acceptances, intention to create legal relation, and consideration.

4.Counter-offer is making a new offer and it operates as a rejection of the original offer- Hyde v. Wrench.

5.According to Section 5(1) of Contracts Act, 1950, the offeror may withdraw his offer at anytime before acceptance. Under Section 6 of Contracts Act, 1950, the offeree can reject an offer –Hyde v. Wrench and also by lapse of time, where acceptance is not received within the time frame, or death, or failure of the acceptor to fulfill a condition.

6.Exceptions are: (a) where the offeror expressly or impliedly waives the requirement that an acceptance be communicated – eg unilateral contracts – Carlill v. Carbolic Smoke Ball Co.; (b) where the offeror is estopped from denying that the acceptance was communicated; (c) where the acceptance is communicated to the offeror’s agent; (d) where the postal rule applies: under Section 4(2) of Contracts Act, 1950, when a properly stamped and properly addressed letter of acceptance is posted into the mail box, it is deemed received by the offeror, and there is a contract between offeror and offeree, even though the mail is lost.

7.(b) When Fei Fei went into a pet shop with an advertisement, is this an offer or invitation to treat? An offer is defined in Section 2(a) of Contracts Act, 1950 as an undertaking by the offeror to be contractually bound in the event of a proper acceptance by the offeree. An invitation to treat is defined as inviting public to make an offer. Here, it is an invitation to treat because they are inviting whoever is interested to buy Dalmations to make an offer.

When Fei Fei went into the pet shop and request to buy the Dalmation for RM1000, she is making an offer. An offer must be clear, definite and certain – White v. Bluett. Here the offer is clear, definite and certain because it is the Dalmation breed which is identified and the amount is RM1000. The offer is bilateral because it is specifically made to the pet shop and therefore only the pet shop can accept or reject the offer – Boulton v. Jones.

According to Section 4(1) of the Contracts Act, 1950, an offer must be communicated –Taylor v. Laird. Here, the offer is communicated because she was told the Dalmation is RM2000. This means that the pet shop has heard the offer from Fei Fei.

Acceptance is defined in Section 2(b) of the Contracts Act, 1950 as unconditional and unqualified assent of the offeree to all the terms of the offer –Neale v. Merrett. Here, there is no acceptance because Fei Fei offer to buy the Dalmation dog for RM1000 was not accepted by the pet shop. Therefore there is no contract.


7(c) When Ali offered to sell Bubu his house for RM 2million, is it an offer or invitation to treat? An offer is defined in Section 2(a) of Contracts Act, 1950 As an undertaking by the offeror to be contractually bound in the event of a proper acceptance by the offeree. An invitation to treat is defined as inviting public to make an offer. In this case, it is an offer because it is made specifically to Bubu only and only Bubu can accept or reject.

An offer must be clear, definite and certain – White v. Bluett. Here the offer is clear, definite and certain because it is Ali’s house which is identified and the amount is RM 2million. The offer is bilateral because the offer is made specifically to Bubu only and therefore only Bubu can accept or reject the offer –Boulton v. Jones.

According to Section 4(1) of the Contracts Act, 1950, an offer must be communicated –Taylor v. Laird. Here, the offer is communicated because Bubu posted her acceptance letter. This means that she has received Ali’s letter of offer.

Acceptance is defined in Section 2(b) of the Contracts Act, 1950 as unconditional and unqualified assent of the offeree to all the terms of the offer –Neale v. Merrett. Here, there is acceptance because postal rules apply. Under Section 4(2)(a) of Contracts Act, 1950, once the letter of acceptance, with properly stamped and properly addressed, is posted into the mail box, there is a contract binding Ali and Bubu on 7 May 2000, even if the letter is lost. Under Section 4(2)(b) of Contracts Act,1950, offeree can withdraw his acceptance even the letter of acceptance has been posted, provided that the letter of acceptance has not been received by the offeror. However, it is not applicable in such situation.

According to Section 5(1) of Contracts Act,1950, the offeror may withdraw his offer at anytime before acceptance. Here, there is an acceptance, so Ali cannot withdraw his offer on 8 May 2000 because there is contract between Ali and Bubu on the 7 May 2000.

7(d) Display of goods in a dress shop is an offer or invitation to treat? An offer is defined in Section 2(a) of Contracts Act, 1950 as an undertaking by the offeror to be contractually bound in the event of a proper acceptance by the offeree. An invitation to treat is defined as inviting public to make an offer. In this case, it is an invitation to treat because the dress shop is inviting whoever is interested in buying their dresses to make an offer.

When Fran went to the cashier to buy the dress, she is making an offer. An offer must be clear, definite and certain – White v. Bluett. Here the offer is clear because the particular dress which is identified. It is a bilateral offer because the offer is made specifically to the dress shop and only the dress shop can accept or reject the offer- Boulton v. Jones.

According to Section 4(1) of the Contracts Act, 1950, an offer must be communicated –Taylor v. Laird. In this case, the offer is communicated because she was told the dress is reserved for somebody else.

Acceptance is defined in Section 2(b) of the Contracts Act, 1950 as unconditional and unqualified assent of the offeree to all the terms of the offer –Neale v. Merrett. Here, there is no acceptance because she was told the dress is reserved for somebody else. Therefore, the contract is not exist because the offer is not accepted.

This is my own version. There may be variation.

4 comments:

  1. Jessie11:52 AM

    Wua girl, you really is a good class rap.. the tutorial is so long but u still very patient to type it out, really thank you so much ... ^^

    ReplyDelete
  2. thanks a lot!!!
    really appreciate your effort~

    ReplyDelete
  3. Anonymous11:02 PM

    hehe... geng... Hope u keep on continue tis good work.. We wil apprecitte u geh.. hehe

    ReplyDelete
  4. Anonymous11:24 PM

    Thanks....

    ReplyDelete

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