Contract Law

Powerful Essays
GENERAL PRINCIPLES OF THE LAW OF CONTRACT

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

You May Also Find These Documents Helpful

Related Topics