Contract Law
GENERAL PRINCIPLES OF THE LAW OF CONTRACT
INTRODUCTION
Definition
S.2(h) Contract Act 1950 : An agreement enforceable by law. Legally binding between parties.
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INTRODUCTION (continue..)
(a) (b)
Legislation governing contracts: Contracts Act 1950 English Law - By virtue of S.5 of the Civil Law
Act (When there are no provisions in the Contract Act)
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INTRODUCTION (continue..)
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OFFER / PROPOSAL
Definition
S. 2(a) Contracts Act
“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.”
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OFFER / PROPOSAL (continue..)
Something which is capable of being converted into an agreement by its acceptance.
A definite promise to be bound provided certain specified terms are accepted.
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OFFER / PROPOSAL (continue..)
The person making the proposal is known as the “promisor” / “offeror” / “proposer”.
The person expected to accept the offer is known as the “promisee” / “offeree” / “acceptor”.
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OFFER / PROPOSAL (continue..)
Makes the offer
Promisor/ Offeror/ Accepts the offer
Promisee/ Offeree/
Proposer
Acceptor
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OFFER / PROPOSAL (continue..)
Affin Credit (Malaysia) Sdn Bhd. v. Yap Yuen Fui * Lack of offer & acceptance in a purported hire-purchase agreement. * The court declared it void ab initio (void from the beginning).
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OFFER / PROPOSAL (continue..)
A proposal must be distinguished from an invitation to treat. Examples of invitation to treat:
– goods displayed in shop windows and shelves – advertisement – auctions – catalogues – price lists
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OFFER / PROPOSAL (continue..)
Display of goods:
* * Not a proposal to sell – invitation not capable of being accepted. Shop-owner merely holds himself prepared to consider proposals made to him at the suggested prices. An offer to buy is
INTRODUCTION
Definition
S.2(h) Contract Act 1950 : An agreement enforceable by law. Legally binding between parties.
2
INTRODUCTION (continue..)
(a) (b)
Legislation governing contracts: Contracts Act 1950 English Law - By virtue of S.5 of the Civil Law
Act (When there are no provisions in the Contract Act)
3
INTRODUCTION (continue..)
4
OFFER / PROPOSAL
Definition
S. 2(a) Contracts Act
“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.”
5
OFFER / PROPOSAL (continue..)
Something which is capable of being converted into an agreement by its acceptance.
A definite promise to be bound provided certain specified terms are accepted.
6
OFFER / PROPOSAL (continue..)
The person making the proposal is known as the “promisor” / “offeror” / “proposer”.
The person expected to accept the offer is known as the “promisee” / “offeree” / “acceptor”.
7
OFFER / PROPOSAL (continue..)
Makes the offer
Promisor/ Offeror/ Accepts the offer
Promisee/ Offeree/
Proposer
Acceptor
8
OFFER / PROPOSAL (continue..)
Affin Credit (Malaysia) Sdn Bhd. v. Yap Yuen Fui * Lack of offer & acceptance in a purported hire-purchase agreement. * The court declared it void ab initio (void from the beginning).
9
OFFER / PROPOSAL (continue..)
A proposal must be distinguished from an invitation to treat. Examples of invitation to treat:
– goods displayed in shop windows and shelves – advertisement – auctions – catalogues – price lists
10
OFFER / PROPOSAL (continue..)
Display of goods:
* * Not a proposal to sell – invitation not capable of being accepted. Shop-owner merely holds himself prepared to consider proposals made to him at the suggested prices. An offer to buy is