Assessment 1 LAW299 Muhammad RYAN PDF

Preview

Summary

ASSESSMENT ONELAW299 BUSINESS LAWSEMESTER 2020/2021 OCTOBER-FEBRUARYPART AANSWER ALL QUESTIONS Nurul offered to sell her handphone to Paula for RM500. Paula however agreed to buy the handphone at RM400 only. Paula is making a. An invitation to treat b. An acceptance c. A cross-offer d. A counter off...

Description

ASSESSMENT ONE LAW299 BUSINESS LAW SEMESTER 2020/2021 OCTOBER-FEBRUARY

PART A ANSWER ALL QUESTIONS 1) Nurul offered to sell her handphone to Paula for RM500. Paula however agreed to buy the handphone at RM400 only. Paula is making a. An invitation to treat b. An acceptance c. A cross-offer d. A counter offer 2) A house is put on auction by Ahmad, a licensed auctioneer. The reserved price has been fixed at RM25,000. Under the law of contract, Ahmad is making a. An acceptance b. An offer c. An invitation to treat d. A counter offer 3) Pak Din promised his brother, Pak Abu to celebrate the latter’s 55th birthday at KL Tower. Pak Din has no obligation to fulfil his promise because a. There is no free consent b. The agreement is a business agreement c. There is no intention to create legal relation d. He has no money to celebrate his birthday at KL Tower 4) Busu agreed to sell his car to Arif after Arif threatened to injure him. Busu May rescind the contract later if he wishes to do so. This contract is voidable on the ground of a. Mistake b. Fraud c. Coercion d. Undue influence 5) By virtue of section 10 CA 1950, a minor has no legal capacity to enter into a contract except a. Contract to purchase Toyota Camry b. Contract to purchase apartment in Kajang Avenue c. Contract for luxurious goods d. Contract for apprenticeship 6) When Wahab makes a proposal to Hj. Bakhil, Haji Bakhil has the choice to accept or to reject. But if Hj Bakhil changes a vital term of the proposal, example price of the goods, Hj. Bakhil is said to have made a. An offer

b. An invitation to treat c. A counter offer d. An acceptance 7) Siti agreed to sell her “LV” handbag to Krisdayanti at the price of RM40,000 or RM40, 5000. There is no valid offer in this situation. Why? a. The handbag is very expensive b. The offeror is not the true owner of the handbag c. The term of the offer is vague d. The term of the offer is certain 8) The following are the classification of consideration EXCEPT: a. Executed consideration b. Past consideration c. Fixed consideration d. Executing consideration 9) Which of the following is NOT a remedy available for breach of contract a. Damages b. Injunction c. Quantum meruit d. Special performance 10) What is the legal authority from Carlill v. Carbolic Smokeball? a. An offer can be made to the whole world b. Offer can only be made to a certain section of the public c. An acceptance is not necessary d. Advertisement is only an invitation to treat 11) An offer can be made only to a certain group of people ( TRUE / FALSE ) 12) A silent of the acceptor is a valid acceptance ( TRUE / FALSE ) 13) An agreement made without consideration is a void contract. ( TRUE / FALSE ) 14) In a domestic agreement the law presumes that the parties have the intention to create legally binding contract. ( TRUE / FALSE ) 15) A contract of marriage enters by a minor is a valid contract ( TRUE / FALSE ) 16) If a person enters a contract based on fraud, the contract becomes voidable (TRUE /FALSE ) 17) Undue influence is defined under section 17 of Contract Act 1950

(TRUE / FALSE ) 18) There are 4 methods to discharge a contract namely discharge by frustration, discharge by breach, discharge by agreement and discharge by application. ( TRUE /FALSE ) 19) If the term of the agreement is not certain, the agreement becomes void ( TRUE /FALSE) 20) An invitation to treat is a form of offer. ( TRUE / FALSE ) PART B ANSWER ONLY ONE QUESTION

QUESTION ONE Linda offered to sell her “Honda Jazz” to Shasha for RM88,000 via a letter. Shasha in reply gave a new figure of RM85,000. Linda was silent as to the offer. One week later, Shasha changed her mind and agreed to the original price. Linda refused to sell. Shasha claimed a contract has come into existence.

Wheter if a Contract come into existence between Shasha and Linda? Section 2 (a) of CA 1950 set out offer as “when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal. Acceptance are defined under section 2(a) as when a person made a proposal to someone signifies his assent thereto. Thus the proposal is said to be accepted. When a proposal is accepted it will become promise. We can said that offer happen when one person give his willingness from doing something. While for acceptance, if a person declares his readiness to accept the offer, it become a contract. On the contrary, Section 7(a) of CA 1950 set out that an acceptance has to be unquailed and absolute. Hence, it will not be a valid acceptance if the acceptor put a condition upon the acceptance. This case fall under counter offer. A modification of original offer is counter offer. In this case the acceptor changes vital terms of the contract. Counter offer is operates as a rejection of original offer. So the original offer are no longer valid and cannot be accepted. The acceptor has the option either to accept or reject the goods. The above tenet is shown by the case of HYDE V. WRENCH. The letter which the court held poster by the acceptor in accepting the offer with a new price 950 pound make up a counter offer and therefore eliminate the original offer. On the contrary of the case STEVENSON JAQUES & CO. v. MC LEAN [1880] 5 QBD 346 the telegram was an approval of the defendant offer. The telegram of the defendant said “Please wire whether you would accept forty for delivery over two months, or if not, longest limit you would give” which should not been treated as a rejection of the offer and should be answered.

In this Circumstance of Linda and Shasha, we can see that Linda offered Shasha to sell her Honda jazz with the prize of RM 88,000. Regrettably, Shasha gave a new offer which is less than RM 85,000. Linda silent as to the offer. By giving a new price or offer, Shasha changed the vital term of the offer, his reply made up a counter offer, therefore operated as rejection of original offer. In implying the case of Hyde v. Wrench its alike with the present case, once the acceptor makes a counter offer, it voids the original offers. Furthermore, Linda stay silent for the offer made by Shasha, it can be said that she did not accept the new price or offer. In Conclusion, Shasha cannot take legal action, for there are no acceptance be made by Linda as a new Offer. Moreover no contract come into existence....