How to answer

problematic
question

 On Saturday, Ben went to a local car dealer,

Syarikat Mawar Berduri Sdn Bhd at Skudai. He
saw a second hand BMW car being displayed
with a label on it which says It is yours for
RM150,000. He immediately wrote a cheque
and saw the manager. He told the manager
after looking at your notice, I now want to buy
the car. He then gave the cheque but the
manager refused to take it. Ben was so
unsatisfied and after insisting him for a reason,
the manager said that Ben did not look like a
person who can afford to buy the BMW car and
he was sure that the cheque will bounce. He felt
so humiliated. He wanted to take action against
the car dealer under the law of contract.
Advise Ben.

 Understand the facts of the

problem first
Question will always revolve
around the issue whether a
contract exist
Remember ** for a contract to
exist, all elements must exist

Here Ben saw a car being

displayed and wanted to buy it
Issue is the car on display by Sykt MB an
offer?
- Sect. 2(a) definition of offer
- a car on display may look like an offer but
is not one. It is only an invitation to treat
- explain invitation to treat
- Phamaceutical Soc. V Boots Cash Chemist
- Apply the section and case to the issue

 Issue is there an acceptance when

Ben writes the cheque and give it to
the manager?
- sect.2(b)..
- no, because it is not acceptance , it is
only an offer made by Ben to the
company.
- Phamaceutical Soc. V Boots Cash
Chemist
- Harris v Nickerson
Apply the case

 The offer by Ben was not accepted by

the company when the manager
refused to accept the chq
When there is no acceptance no
contract
Even if other elements exist but
without acceptance no contract
Advice
Ben is advised not to take any action
against the car dealer because he
has no rights / good grounds in
contact law to do so