On 1 January, Azura wrote to Siti, her friend, that she wanted to sell his Proton Saga.

On the
same day, Siti wrote to Azura to buy her car. After Siti sent her letter, she remembered she
had forgotten to get details about Azura’s car. She then wrote to Azura to ask her the model
of her car, the year it was manufactured and the price. When Azura received Siti’s letter, she
replied that her car was a Model E, manufactured in 2018 and the price was RM25,000. Siti,
when she received Auzra’s letter, wrote to buy Azura’s car for RM20,000. Azura, when she
received Siti’s letter did not replied. Two days later, Siti, wrote to Azura agreeing to buy her
car for RM25,000. Siti’s letter reached Azura on 15 January, but on 14 January Azura has
already sold her car to Nurlu. When Siti came to know about that she was upset and decided
to take court action against Azura claiming that her letter agreeing to buy her car for
RM25,000 was an acceptance to conclude a contract.

Azura approached you for advice whether Siti has entered into a contract to buy her car and
whether she would be liable to her if she were to take court action against her. Advise Azura.

The Issues

The issues are:

Whether there was a contract made between Azura and Siti on the sale of her car to her and,
if the consequence of her liability to her in the event she was to take court action against her.

The Laws

The issues arising fall under the law of contract and as such, the Contracts Act 1950 applies.
A contract has to be a legally binding agreement between the parties to the contract. For
there to be a contract it must have the essential elements of a contract, namely, offer,
acceptance, consideration, etc.

Analysis

On 1 January, when Azura wrote to Siti to sell her car, she was making any offer to sell her
car to her. For an offer to exist it must be absolute, unqualified and communicated to Siti.
Her communication was not absolute and unqualified. Azura’s letter can be said to be that
she was merely giving an information to her to sell her car. On the same day when Siti wrote
to Azura to buy her car, she was not making an offer nor an acceptance to buy Azura’s car.
For Siti’s letter to be an offer it must be absolute, unqualified and communicated to Azura.
Her letter was not absolute and unqualified. It also cannot be an acceptance as there was no
offer made by Azura to sell her car to her. Her letter, at best, can be said to be giving an
information to Auzra to buy her car.

Conclusions