Topic 1 : Illustrations for offer

and acceptance
 Illustration 1:
Ali : Would you sell me your laptop?
Abu: How much you are ready to pay?
Ali: I can buy your laptop for RM 800 – (Here, Ali is making an offer)
Abu: Ok…deal! I give you my laptop for RM 800. (an acceptance is made)

 Here, a contract has been concluded between Ali and Abu. It is binding
upon both of them to fulfill their promise towards each other.
 Offerror – Ali
 Offeree /acceptor - Abu
 Illustration 2:
Ali : Would you sell me your laptop?
Abu: How much you are ready to pay?
Ali: I can buy your laptop for RM 800 – (Here, Ali is making an offer)
Abu: Oh no.. It’s too low. I can give it to you for RM1000
(Here, Abu is making a counter-offer)

 The counter-offer made by Abu has revoked / terminated the offer made by
Ali
 Illustration 3:
Ali : Would you sell me your laptop?
Abu: How much you are ready to pay?
Ali: I can buy your laptop for RM 800 – (Here, Ali is making an offer)
Abu: Oh no.. It’s too low. I can give it to you for RM1000
(Here, Abu is making a counter-offer)
Ali: I don’t have RM 1000. How about RM900? (This is another counter-offer)
Abu: Ok lah… RM 900. It’s better than RM 800. (Here, an acceptance is made)

 A contract is concluded when Abu agreed to sell his laptop for RM 900.
 Offeror – Ali
 Offeree /acceptor – Abu

 If Ali agrees to buy the laptop for RM 1000, Ali is said to have made an acceptance. Abu is
the offeror, while Ali is the offeree /acceptor.