Question

Instruction: propose you answer with relevant Justicifation from contract Act 1950.

TOPIC : PROPOSAL (OFFER) AND ACCEPTANCE

Question 1

Examine whether there is an enforceable contract between the parties in
the following circumstances.Saleem advertised in the columns of the Malay Mail a 1985 model
Toyota car for sale. Hafeez sent the following telegram to Saleem:

(a)Interested in buying the Toyota Car. Quote lowest price.To this Saleem replied The lowest price thatI can offer is
RM17,000. Hafeez replied 'I agree to buy the car for RM17,000.
Saleem did not care to answer Hafeez.
After waiting for a few
weeks Hafeez goes to Saleem with the money to buy the car.
Saleem refuses to sell.

(b) Rashid offers Mat RMI,000 if he jumps across Bentong Gorge on
his motorcycle. When Mat started his motorcycle and reached the
spot and was about to jump, Rashid shouted at that moment
Withdrawing his offer. However, Mat crossed the Gorge safely.
Is Mat entitled to RM1,000?

Answer 1

Ans 1) in the above case advertising of the product is only the invitation to offer and not considered as offer. Therefore when Hafiz gone to buy car it will be considered as offer by hafiz to salim which he can accept or reject. Therefore there is not acceptance of offer by salim .hence he is not obliged to perform the contract because there is no contract between them.

Ans 2) Agreement to uncertainity and agreement to wagering are void . In this case there is wagering in this agreement which is void therefore it can't be considered as contract hence mat is not entitled for 1000