Business Law

Topics: Contract, Contract law, Offer and acceptance Pages: 4 (1461 words) Published: March 4, 2013
Question 1
James placed an advertisement in the Star newspaper, for the sale of his BMW motorbike, made of aluminium, a lightweight metal, for RM150,000.00 or nearest offer. A new motorbike of the same type would cost 250,000.00. Dahari knew that the motorbike is worth more than RM150,000.00. He responded quickly to say he accepted the offer. However James informed him that he has sold the aluminium BMW lightweight motorbike and now he has only a racing motorbike available for sale for RM220,000.00.

Advise Dahari. (Total: 20 marks)

Question 1 is about the law contract it entails issues regarding an invitation to treat (ITT), the fact shows that James has placed an advertisement at the Star newspaper for the sale of his BMW motorbike. This is advertisement is not an offer, it had similar with the cases of, Majumder v A-G of Sarawak. For the example cases of Majumder v A-G of Sarawak, the Malaysia court held that such advertisement is invitation to treat. Federal court held that an advertisement in newspaper for the post of a doctor was an invitation to treat. Dahari responded quickly to the advertisement and he quickly accepts the offer, and it was regarding to offer and acceptance. It had similar with the cases of Powell v Lee (1908). Offer is define as proposal under Section 2(a) of the Contract Acts 1950 and the principle of an offer can be found in the cases of Carlil v Carbolic Smoke Ball Company. Beside that, offer and acceptance means of analyzing the process of negotiation to decide whether and when a contract has been made and what therefore constitutes its item. In the cases Dahari make offer to James in order to show he accepted the price made on the advertisement. However, James inform Dahari that he already sold out the BMW motorbike, and James making another new offer to Dahari which is another racing motorbike at the price RM220, 000.00.Under Section 2 (b) when the offered signifies his assent to the...
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