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Offer:
An offer is a proposal made by one party to another, indicating a willingness to enter into a
legally binding contract. It must contain certain essential elements to be considered a valid
offer:
1. Intention to Create Legal Relations: The offeror must demonstrate a clear intention to
create a legal relationship. In this case, Zulhafiq's statement, "Would you like this
house for RM350,000?" suggests an intention to enter into a legally binding
agreement.
2. Definite and Certain Terms: The offer must contain definite and certain terms,
including the subject matter, price, and any other essential terms of the agreement.
Zulhafiq's offer specified the house for sale and the purchase price of RM350,000,
providing clear terms for Anis to consider.
3. Communication: The offer must be communicated to the offeree, ensuring that the
party receiving the offer is aware of its existence. Zulhafiq communicated the offer
directly to Anis during their conversation, making her aware of the proposal.
In this case, Zulhafiq's statement satisfies these elements of an offer. He expressed his
intention to sell the house, provided definite and certain terms (the house for RM350,000),
and directly communicated the offer to Anis. On May 5th, 2023, Zulhafiq offers the house to
Anis for RM350,000. Anis agree with Zulhafiq offers to sell his house, but anis asked zulhafiq
to give her time for 3 days until May 8 th,2023 to make the decision. There is no acceptance
or counteroffer is made on this date.
It is important to note that an offer can be revoked by the offeror at any time before it is
accepted, as long as the revocation is communicated to the offeree. Zulhafiq's subsequent
statement to Anis, informing her that he had given his word to another friend, Shamalah, can
be seen as a revocation of his offer. As a result, the offer was no longer available for
acceptance by Anis when she made her counteroffer.
Acceptance:
Acceptance is the expression of agreement by the offeree to the terms of the offer. For
acceptance to be valid, it must meet certain requirements:
In this case, Anis expressed her acceptance but added a condition to her agreement – the
requirement to remove the kapok tree. By introducing this condition, Anis was essentially
making a counteroffer, modifying the original terms of Zulhafiq's offer. The acceptance was
no longer an exact mirror image of the offer, and it introduced new terms to the agreement.
Furthermore, before Anis had the opportunity to communicate her counteroffer, Zulhafiq
informed her that he had given his word to another friend, Shamalah, indicating a withdrawal
of his initial offer. As a result, there was no opportunity for Anis to communicate her
counteroffer, and the acceptance became moot.
Counter Offer:
A counteroffer is a response by the offeree that introduces new or different terms to the
original offer made by the offeror. It essentially acts as a rejection of the original offer and
presents a new offer in its place. To be valid, a counteroffer must meet certain requirements:
In this case, on May 7th, 2023 Anis made a counteroffer when she contacted Zulhafiq and
stated that she would like to have the house without the kapok tree. By requesting the
removal of the tree, Anis introduced a new condition to the agreement. This counteroffer
modified the original terms proposed by Zulhafiq, as it now included the requirement of
removing the tree.
It's important to note that a counteroffer generally terminates the original offer. The offeror
then has the option to accept, reject, or make a counter-counteroffer in response to the new
proposal. However, in this case, before Anis had the opportunity to communicate her
counteroffer, Zulhafiq informed her that he had given his word to another friend, Shamalah,
effectively withdrawing his initial offer.
Withdrawal of Offer:
Withdrawal of an offer refers to the action taken by the offeror to revoke or retract their initial
offer before it is accepted by the offeree. For the withdrawal of an offer to be effective,
certain principles should be considered:
2. Timeliness: The withdrawal should occur before the offeree has accepted the offer.
Once the offeree has communicated their acceptance, the offer cannot be withdrawn.
In this case, Zulhafiq informed Anis that he had given his word to another friend, Shamalah,
after Anis expressed her counteroffer to have the house without the kapok tree. Zulhafiq's
statement effectively communicated his decision to withdraw the initial offer he made to Anis.
This communication occurred before Anis had the chance to formally communicate her
counteroffer.
As a result of the withdrawal, the original offer was no longer available for acceptance by
Anis. Once the offer was withdrawn, it could not be reinstated or accepted by Anis, even if
she had agreed to the original terms or made a counteroffer.
It's worth noting that revocation or withdrawal of an offer is generally effective as soon as it is
communicated to the offeree. However, if an offeree has already received the offer from a
reliable third party (known as a "mailbox rule"), the offeror may not be able to withdraw the
offer.
In summary, Zulhafiq effectively withdrew his initial offer when he informed Anis that he had
given his word to another friend. This withdrawal occurred before Anis had the opportunity to
communicate her counteroffer, rendering the original offer unavailable for acceptance.
Consequently, no valid contract was formed between Anis and Zulhafiq.