LAW299 Tutorial Problematic Questions (Contract) PDF

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PROBLEMATIC QUESTIONS. LAW299 TUTORIAL QUESTIONS

Question 1 Alia had lost her son, Amin. She advertised in the local newspaper that whoever finds Amin and returns him to Alia, she would give that person RM10,000 as a reward. Three days later, Amin was found by Jimmy who returned him to Alia. Jimmy had read the newspaper and seen the advertisement. Advise Jimmy whether he is entitled to the reward. (15 marks) Source - Question 1(b) – March 2017

Question 2 Maira proposed to sell his piano to Vanessa for RM 8,000 to be accepted within one week. Vanessa agreed to buy the piano for RM 6,000. Immediately after receiving Vanessa's reply, Maira sold the piano to Tiara. Vanessa wishes to sue Maira for breach of contract. Advise Maira. marks) Source - Question 2(a) - September 2012

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Tutorial question and answer Question 1 Alia had lost her son, Amin. She advertised in the local newspaper that whoever finds Amin and returns him to Alia, she would give that person RM10,000 as a reward. Three days later, Amin was found by Jimmy who returned him to Alia. Jimmy had read the newspaper and seen the advertisement. Advise Jimmy whether he is entitled to the reward. Answer Issue: Whether Jimmy entitled to the rewards that has been advertised by Alia Principle of law: Contract can be defined as a legally binding of an agreement between two or more parties. Under the Contract Act 1950 section 2(h) which stated an agreement enforceable by law. It is important to determine the agreement between Alia and Jimmy. The elements of contract must exist to determine the agreement. The proposal that has been made by proposer is general public so as long as anyone can fulfilled all the condition may be accepted. It is as same as the case of Carlill v Carbolic Smoke Ball Co. (1893). The defendant is advertised to offer 100 pounds that still caught Influenza even after use the defendant’s company medicine. The plaintiff sued the defendant’s company after caught the disease. It is held that the plaintiff is entitled to the 100 pounds because the plaintiff has accepted the offer that made to the world. The propose must be communicated to the acceptor. The communication of the proposal must come to the knowledge of the person to whom it is made which is according to the S.4(1) of the contract Act 1950. The meaning of this is, the proposee must acknowledge the proposal when he makes the acceptance. The case of R v Clarke is when the Western Australian Gov offered a reward for information of the conviction of person whom responsible of the murder. Clarke gave the information about the convicted without knowing the rewards. However, after he inform, he knows about the rewards and try to claim. It is held that Clarke failed to claim the reward as he is not aware of the rewards at the time he gave the information. Application of law: Alia advertised in the local newspaper that if anyone find her daughter, she will give RM10 000 to the person. In this case, it is the general public which is anyone who can fulfil the condition may be accepted. Jimmy returned Alia’s daughter after three days he read the newspaper. So, the first element is fulfilled. Then, the second elements is whether the communication between propose and proposee. Jimmy acknowledge the reward that had been given if anyone found Fatimah which Alia’s daughter. So, the second elements is fulfilled. Conclusion: In conclusion, Jimmy is entitled to the rewards. He can claim the rewards from Alia.

Question 2 Maira proposed to sell his piano to Vanessa for RM 8,000 to be accepted within one week. Vanessa agreed to buy the piano for RM 6,000. Immediately after receiving Vanessa's reply, Maira sold the piano to Tiara. Vanessa wishes to sue Maira for breach of contract.

Advise Maira Issue: Whether Vanessa can sue Maira under the breach of contract Contract can be defined as a legally binding of an agreement between two or more parties. Under the Contract Act 1950 section 2(h) which stated an agreement enforceable by law. Principle of law It is important to determine whether Maira and Vanessa had made any contract. Proposal is an offer that had been in any form whether using expression which is when the proposer propose to the proposee using word or writing. Then, it also can be made using the combination of implied and express. The case of Thornton V. Shoe Lane Parking Ltd held that when the plaintiff wished to park his car in the defendant’s automatic car park. The plaintiff saw a notice at the entrance stated, “All car parked at owner’s risk”. After he get the ticket from the machines, he saw the time printed on it and saw other printed words which he does not read. The printed word that he does not read is the condition is owner is liable for his damage car and his personal injury. When he returned to collect his car, the plaintiff sustained personal injuries and sued the defendant. The defendant pleaded that they were not liable based on the printed word that issued in the ticket. It was held that the defendant liable to the injuries and the condition did not apply as the offer and acceptance has been made when the plaintiff pays his money and get the ticket from the machine. The proposal must be distinguished from the counter offer. Counter offer is the modification from the original offer. When A has made an offer to B, but then B made a new proposal to A by changing the vital term in contract, it is called as counter offer. When the counter offer has been accepted by both parties, the original contract is not valid. In the case of Hyde v. Wrench, the defendant made an offer to the plaintiff to sell his land for E1000. However, the plaintiff immediately called the defendant to make an offer for E950. The defendant refused to accept the new price and then the plaintiff immediately accept the original offer which is E1000. The court held that there was no acceptance as the defendant reject the counter offer. Application of law: Maira has proposed Vanessa to buy her piano. However, a counter offer happened when Vanessa has offer the Maira to sell for RM6,000. But Maira was not reply the counter offer which means the offer has not be accepted by Maira yet. So, Maira can sell her piano to another person because the original offer is not valid when Vanessa made a counter offer. Conclusion: I am not going to advice Vanessa to sue Maira as the offer and acceptance do not happened yet....