CHAPTER 2: LAW OF CONTRACT (PART 1)

Shuib says to Zaki,” I promise to pay you RM 50 if you agree to let me park my car in front of your house for 3 days, starting from tomorrow morning.” Shuib shows his willingness to do something. Shuib is making ……

• a proposal

• an agreement

• an acceptance

• an invitation to treat

The following are the situations for an invitation to treat except ……..

• a price list

• an advertisement of tender

• a display of goods with a price tags

• a letter of offer for an employment

Mih Sai offered to sell his Proton Perdana car to Jang Goot on 5 Oktober for RM100 000. On 10 Oktober, in reply, Jang Goot stated he was willing to buy that car at RM90 000. Under the Contracts Act 1950 Jang Goot is said to make ……….

• a proposal

• an acceptance

• a counter offer

• an invitation to treatt

What is the effect of an acceptance to a proposal made after a lapse of a reasonable time?

• Valid contract exist but it is unenforceable.

• There is no contract since the acceptance is invalid.

• Valid contract exist since there is a valid acceptance.

• Voidable contract exist since there is a valid acceptance.

The communication of an acceptance by an offeree (promisee) through post complete as against the offeror (promisor) when ……….

• the offeror has notice of it

• it comes to the knowledge of offeror

• the offeror is ready to accept the acceptance

• it is put in the course of transmission to the offeror

Ani through a letter, had offered to sell his house to Benjy at the price of RM80,000. Benjy had accepted Ani’s offer through post. Benjy wanted to revoke his acceptance. When can Benjy do so?

• Benjy cannot revoke his acceptance.

• Before Benjy's acceptance letter is received by Ani.

• When Ani receives the acceptance letter from Benjy.

• At any reasonable time when Benjy thinks reasonable.

In the case of Hyde v. Wrench [1840], the acceptance made by plaintiff was held as invalid by court because plaintiff first agreed to buy defendant’s estate for 50 pounds lesser than the offered price.

What is the factor which made the acceptance invalid?

• The price is too cheap

• The acceptance is not absolute.

• The object of the contract is unlawful

• The acceptance was made in unusual manner

Acceptance by e-mail is an example of …….

• postal rule

• exceptional rule

• instantaneous communication

• modern communication of an acceptance

Which of the following cases is authority for the principle that the advertisement of an unilateral contract was held to be an offer?

• Kerpa Singh v Bariam Singh (1966) 1 MLJ 38

• Nash v Inman (1908) 2 KB 1

• Carlill v Carbolic Smoke Ball Co. (1893) 1 QB 256

• JM Wotherspoon & Co. Ltd v Henry Agency House (1962) MLJ 86

The proposal has become a “promise” when the agreement between the parties is created. The party making the proposal is now referred to as the

• Promisor

• Promisee

• Principal

• Promoter