CONFIDENTIAL

FACULTY OF LAW

UNIVERSITI TEKNOLOGI MARA

INDIVIDUAL ASSIGNMENT

COURSE NAME :
BUSINESS LAW LAW299
COURSE CODE : 8 DECEMBER 2022

ASSESSMENT : (2.00 PM)

RELEASE DATE : 15 JANUARY 2023 (2.00 PM)
ASSESSMENT :
LAST SUBMISSION
DATE

INSTRUCTIONS TO CANDIDATES

1. Answer ALL questions in English not more than 15 pages. Times New Roman 12 point.

2. Softcopy of answers will be submitted via dedicated email address

namaf5bfeb2021@gmail.com on or before 15 January 2023 Prepared by:
Dr Faridah Binti Hussain (017-2578759)

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NAME: Tuan Salmiah Tuan Sulong

STUDENT’S NUMBER: 2019150343

GROUP: NAMAF7A
LAW299

Question 1

Suzy owned a house in Gombak that she wanted to sell. She offered it to Tipah for
RM90,000. Tipah only agreed to buy it for RM70,000. Suzy was not satified with the price
and decided to sell it to her friend Amelia. Four days later, Tipah phoned suzy and told her
that she is willing to buy the house for RM90,000. Suzy then informed Tipah about the sales
of the house to Amelia. Tipah is angry and upset about it and she wants to know if there is an
agreement between her and suzy.

With reference to the legal principles under the law of contract and the Contracts Act 1950,
Explain the legal position of the above situation to Tipah.

(20 marks)

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Issue:
Whether Tipah can sue Suzy under the breach of contract

Contract can be defined as a legally binding of an agreement between two or more

parties. Under the Contract Act 1950 section 2(h) which stated an agreement
enforceable by law.

Principle of law
It is important to determine whether Maira and Vanessa had made any contract.
Proposal is an offer that had been in any form whether using expression which is when
the proposer propose to the proposee using word or writing. Then, it also can be made
using the combination of implied and express.
The case of Thornton V. Shoe Lane Parking Ltd held that when the plaintiff wished to
park his car in the defendant’s automatic car park. The plaintiff saw a notice at the
entrance stated, “All car parked at owner’s risk”. After he get the ticket from the
machines, he saw the time printed on it and saw other printed words which he does not
read. The printed word that he does not read is the condition is owner is liable for his
damage car and his personal injury. When he returned to collect his car, the plaintiff
sustained personal injuries and sued the defendant. The defendant pleaded that they
were not liable based on the printed word that issued in the ticket. It was held that the
defendant liable to the injuries and the condition did not apply as the offer and
acceptance has been made when the plaintiff pays his money and get the ticket from
the machine.

The proposal must be distinguished from the counter offer. Counter offer is the
modification from the original offer. When A has made an offer to B, but then B made a
new proposal to A by changing the vital term in contract, it is called as counter offer.
When the counter offer has been accepted by both parties, the original contract is not
valid. In the case of Hyde v. Wrench, the defendant made an offer to the plaintiff to sell
his land for E1000. However, the plaintiff immediately called the defendant to make an
offer for E950. The defendant refused to accept the new price and then the plaintiff
immediately accept the original offer which is E1000. The court held that there was no
acceptance as the defendant reject the counter offer.

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Application of law:
Suzy has proposed Tipah to buy her house. However, a counter offer happened when
Suzy has offer the Tipah to sell for RM90,000. But Tipah was only agree to buy it with
price RM70,000 which means the offer has not be accepted by Tipah yet. So, Suzy can
sell her house to another person because the original offer is not valid when Tipah
made a counter offer.

Conclusion:
I am not going to advice Tipah to sue Suzy as the offer and acceptance do not
happened yet.

REFERENCE

 INTRODUCTION TO BUSINESS LAW IN MALAYSIA (FOR NON – LAW

STUDENTS) BY IRINI IBRAHIM, NORAZLINA ABDUL AZIZ, SYUHADA AENI
MAT ALI, NURUL SHUHADA SUHAIMI.

 COLUMBIA LAW REVIEW VOL. 25, NO. 4 (APR., 1925), PP. 464-470
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 LAWS OF MALAYSIA, REPRINT ACT 136, CONTRACTS ACT 1950 - INCORPORATING ALL
AMENDMENTS UP TO 1 JANUARY 2006

 LAWTEACHER -FREE LAW STUDY RESOURCES

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