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    Law of Contracts

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    Iezzatyshz
    There is no binding agreement between Dollah and Comel. Dollah's acceptance of Comel's proposal to buy the car was conditional on his wife agreeing to the sale. Under Malaysian contract law, for a proposal to become a binding agreement, the acceptance must be absolute and unconditional. In this case, the acceptance was conditional on Dollah's wife agreeing, so there is no binding contract formed yet between Dollah and Comel. The agreement will only become binding if and when Dollah's wife provides her acceptance of the proposed sale.

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    Law of Contracts

    Uploaded by

    Iezzatyshz
    262 views4 pages
    There is no binding agreement between Dollah and Comel. Dollah's acceptance of Comel's proposal to buy the car was conditional on his wife agreeing to the sale. Under Malaysian contract law, for a proposal to become a binding agreement, the acceptance must be absolute and unconditional. In this case, the acceptance was conditional on Dollah's wife agreeing, so there is no binding contract formed yet between Dollah and Comel. The agreement will only become binding if and when Dollah's wife provides her acceptance of the proposed sale.

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    There is no binding agreement between Dollah and Comel. Dollah's acceptance of Comel's proposal to buy the car was conditional on his wife agreeing to the sale. Under Malaysian contract law, for a proposal to become a binding agreement, the acceptance must be absolute and unconditional. In this case, the acceptance was conditional on Dollah's wife agreeing, so there is no binding contract formed yet between Dollah and Comel. The agreement will only become binding if and when Dollah's wife provides her acceptance of the proposed sale.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    262 views4 pages

    Law of Contracts

    Uploaded by

    Iezzatyshz
    There is no binding agreement between Dollah and Comel. Dollah's acceptance of Comel's proposal to buy the car was conditional on his wife agreeing to the sale. Under Malaysian contract law, for a proposal to become a binding agreement, the acceptance must be absolute and unconditional. In this case, the acceptance was conditional on Dollah's wife agreeing, so there is no binding contract formed yet between Dollah and Comel. The agreement will only become binding if and when Dollah's wife provides her acceptance of the proposed sale.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    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, or, if no time is so
    prescribed, by the time lapse of a reasonable time, without communication of the
    acceptance;

    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, if the fact of his death or mental disorder
    comes to the knowledge of the acceptor before 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


    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, express and implied.

    " So far the proposal or acceptance of any promise is made in words, the promise is said to
    be express. So far as the proposal or acceptance is made otherwise than in words, the
    promise is said to be implied. "

    >DIAMOND PEAK SDN BHD & ANOR v DR TWEEDIE

    "As said by Gunn Chit Tuan J in Diamond Peak Sdn Bhd v. Dr Tweedie, under our law, as in
    most Commonwealth Countries, an oral contract for the sale of immovable property is valid
    and enforceable."

    STEP 3: Application of the law

    According to Section 9 of CA 1950 and decided case, 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), oral (implied),
    conduct (implied) and combination of all above.

    STEP 4: conclusion
    An orally concluded agreement is just as binding as a written one and can be enforced in
    court as well. The main difference is, though, that when the contract parties are in dispute, it
    can be difficult to provide evidence of the content or even the existence of an oral
    agreement. Hence, it is always better to put things in a contract and have both parties sign
    it. In some cases, the law requires that an agreement is laid down in a written document, a
    purchase contract regarding a house being one of them.
    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, 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, the acceptance must
    be absolute and unqualified

    Vantage Systems v Priolo Corporation

    The court found that when the tenant accepted the revised proposal, 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. The condition is that Dollah's wife agreed to sale.

    If Dollah failed to fulfil the condition, the contract will be null and void which falls under
    Section 6(c) of CA 1950.

    According to Section 7(c) of CA 1950, the agreement between Dollah and Comel must not
    have any doubt and confusion and both parties must have the right knowledge about the
    agreement.

    STEP 4: conclusion
    A conditional agreement is also considered as a form of contract.
    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.

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