Contract of Law

Topics: Contract, Contract law, Breach of contract Pages: 3 (1055 words) Published: August 26, 2013
Is there a valid contract between Danny and Rahul? Is the contract frustrated? Does Rahul need to pay the fee? Is there a breach of contract? Can Rahul sue Danny?

An offer can be defined in Section 2(a) Contract Act 1950 (here in after referred to as CA 1950) as “When one person signifies to another his willingness to do or abstain from doing, with the view to obtaining the assent of that to the act or abstinence, he is said to make a proposal”. Under the CA 1950 and English Law, an offer is something which is capable of being converted into an agreement by its acceptance. Rahul wishes to go to Serdang so that he offers the money for the taxi service.

Acceptance is defined in Section 2(b) CA 1950 as “when a person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted: a proposal, when accepted, becomes a promise”. As a taxi driver, Danny accepts the offer of Rahul and picks him to the Serdang.

According to the Section 2(d) CA 1950, consideration is defined as “when, at the desire of the promisor, the promise or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise”. Consideration must exist in every contracts and it must have monetary value. Consideration can also be defined as a detriment suffered in exchange for a benefit received. This means that each party must promise to give or do something for the other. Rahul exchanges money for taxi service and Danny provides taxi service to earn the money so that there is a valid contract between Danny and Rahul.

Danny starts off his journey and soon encounters traffic congestion after completing 12 kilometers of the journey. Because of the traffic congestion, Danny refuses to move and switches off the air condition. But Rahul wishes to go to Serdang, a town 15...
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