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LAW OF CONTRACTS

(OFFER AND ACCEPTANCE)

OUR GROUP

Fisher bell bell

Fatin Nur Aliah Mohd Shahzihan

(1722658)

Fithriyaani Hafzhan Mohd Shaari

(1724014)

Maizatul Akma Mahat

(1723650)

Quote of the day

Work hard in silence. Let your success be your noise.

QUESTION NO 2 (a)

a) State the circumstances in which a proposal will be terminated with references to the
Contract Acts 1950 and decided cases
TERMS OF TERMINATION
Can be divided into 2:
a) Section 5(1), Contract Acts 1950
"A proposal may be revoked at any time before the communication of its acceptance
is complete as against the proposer but not afterwards."
b) Section 5(2), Contract Acts 1950
"An acceptance may be revoked at any time before the communication of its
acceptance is complete as against the proposer but not afterwards."

CIRCUMSTANCES OF TERMINATION
Section 6(a)

By the communication of notice of revocation by the proposer to the party.

A) Defined

offer is made by sending the offer notice by telegram or postage

the acceptance is succeed when only the offeree accepts the notice.

- Example: i) Byrne v Van Tienhoven (1880) 5 CPD 334

Section 6(b) by the lapse of the time prescribed in the proposal for its acceptance. Defined: it happens when the proposer died or became mentally disordered subsequent to the communication of proposal. Example: i) Re Whelan (1897) 11 R 575 . if the fact of his death or mental disorder comes to the knowledge of the acceptor before acceptance. by the time lapse of a reasonable time. without communication of the acceptance. if no time is so prescribed. Defined: that the proposal may be terminated due to expiration of time prescribed in the proposal no time is prescribed by the lapse of reasonable time Example: i) Ramsgate Victoria Hotel Co Ltd v Monteflore (1866) LR 1 Ex 109 Section 6(c) by the failure of the acceptor to fulfil a condition precedent to acceptance Defined: this happens when the acceptor fails to fulfil the condition precedent to acceptance. Example: i) Finncing Ltd V Simson (1962) 1WLR 1184 Section 6(d) by the death or mental disorder of the proposer. or.

conduct (implied) and combination of all above. So far as the proposal or acceptance is made otherwise than in words. though." STEP 3: Application of the law According to Section 9 of CA 1950 and decided case. under our law. as in most Commonwealth Countries. the oral agreement made by both parties is considered as a binding agreement. In other words. the form of a proposal can be made in word (express). the law requires that an agreement is laid down in a written document. STEP 4: conclusion An orally concluded agreement is just as binding as a written one and can be enforced in court as well. it is always better to put things in a contract and have both parties sign it. " >DIAMOND PEAK SDN BHD & ANOR v DR TWEEDIE "As said by Gunn Chit Tuan J in Diamond Peak Sdn Bhd v. that when the contract parties are in dispute. the promise is said to be express. The main difference is. express and implied. " So far the proposal or acceptance of any promise is made in words. In some cases. the promise is said to be implied. oral (implied). an oral contract for the sale of immovable property is valid and enforceable. a purchase contract regarding a house being one of them. . Hence. Dr Tweedie.Question 2 (b)(i) Is there a binding agreement in the following case? CASE 1: Ali and Baba conclude a verbal agreement for the sale of a house subject to a contract to be drawn up by their solicitors and signed by both parties STEP 1: Identify the issues Is the verbal agreement made between Ali and Baba considered as legally binding? STEP 2: State the law > Section 9 of CA 1950: Promises. it can be difficult to provide evidence of the content or even the existence of an oral agreement.

the parties intended to be barned immediately by an agreement STEP 3: Application of the law The proposal made by Dollah to buy Comel's car will only be accepted through condition as referred to Section 8 of CA 1950. STEP 4: conclusion A conditional agreement is also considered as a form of contract. According to Section 7(c) of CA 1950. the contract will be null and void which falls under Section 6(c) of CA 1950. The condition is that Dollah's wife agreed to sale. or receiving consideration Section 6(c) of CA 1950: By the failure of the acceptor to fulfil a condition precedent to acceptance Section 7(a) of CA 1950: In order to convert a proposal into a promise.Question 2 (b)(ii) Is there a binding agreement in the following case? CASE 2: Dollah agrees to buy Comel's car subject Dollah's wife agreeing to the sale STEP 1: Identify the issues Whether there is a binding agreement between Dollah and Comel STEP 2: State the law Section 8 of CA 1950: Acceptance by performing conditions. If Dollah failed to fulfil the condition. . the acceptance must be absolute and unqualified Vantage Systems v Priolo Corporation The court found that when the tenant accepted the revised proposal. The agreement between Dollah and Comel will be binding between them only when Dollah's wife agree with the agreement Dollah's wife is the main character in this situation where she is the authority and the executive power. the agreement between Dollah and Comel must not have any doubt and confusion and both parties must have the right knowledge about the agreement.