Business law

Topics: Contract, Common law, Contract law Pages: 19 (6021 words) Published: April 23, 2014


BUSINESS LAW (BBL 2014)

TRIMESTER 1, 2013/2014 SESSION

Assignment title:

Comparative Study and Analysis of The Laws of Malaysia and United States

PREPARED BY:

STUDENT NAME
STUDENT ID
ITTIPORN PRASERTSIT
1092701396
ER CHEE ZHENG
1102700368
ALI JAVIDFAR
1101106508
MUHAMMAD ASYRAF SHABARUDDIN
1061111744
SHAHIN BAGHERI
1092700846

PREPARED FOR:
DR. BAHMA A/P A SIVASUBRAMANIAM

Contents

Introduction

The law of contract is about the enforcement of promises where the basic law, governs and relates to most aspects of human life. Contracts provide the means for individuals and businesses to sell or transfer property, services and other rights. Although the law of contract is about the enforcement of promises but not all promises are enforced by courts and to enforce a set of promises, or an agreement, courts look for the presence of certain elements; In other words contract is generally defined as a promise, or a set of promises, actionable upon breach of the contract where to enforce these set of promises or agreements, courts look for the presence of certain elements and once these elements are present a court will consider that the agreement is a contract. The purpose of a contract is to establish the agreement that the parties have made and to fix their rights and duties in accordance with that agreement.

The requisites for formation of a legal contract are an offer, an acceptance, competent parties who have the legal capacity to contract, lawful subject matter, and mutuality of agreement, consideration, and mutuality of obligation. An offer is a promise that is, by its terms, conditional upon an act, forbearance, or return promise being given in exchange for the promise or its performance. It is a demonstration of willingness to enter into a bargain, made so that another party is justified in understanding that his or her assent to the bargain is invited and will conclude it. Any offer must consist of a statement of present intent to enter a contract; a definite proposal that is certain in its terms; and communication of the offer to the identified, prospective offeree. Acceptance of an offer is an expression of assent to its terms. It must be made by the offeree in a manner requested or authorized by the offeror. An acceptance is valid only if the offeree knows of the offer; the offeree manifests an intention to accept; the acceptance is unequivocal and unconditional; and the acceptance is manifested according to the terms of the offer. The determination of a valid acceptance is governed by whether a promise or an act by the offeree was the bargained-for response. Since the acceptance of a unilateral contract requires an act rather than a promise, it is unnecessary to furnish notice of intended performance unless the offeror requested it. If, however, the offeree has reason to believe that the offeror will not learn of the acceptance with reasonable promptness, the duty of the offeror is discharged unless the offeree makes a reasonable attempt to give notice; the offeror learns of the performance; or the offer indicates that no notice is required.

Competent Parties involve a natural person who agrees to a transaction has complete legal capacity to become liable for duties under the contract unless he or she is an infant, insane, or intoxicated.Infants An infant is defined as a person under the age of 18 or 21, depending on the particular jurisdiction. A contract made by an infant is voidable but is valid and enforceable until or unless he or she disaffirms it. He or she may avoid the legal duty to perform the terms of the contract without any liability for breach of contract.

Any undertaking may be the subject of a contract, provided that it is not proscribed by law. When a contract is formed in restraint of trade, courts will not enforce it, because it...
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