distinguish between an offer (proposal) and an invitation to treat

Topics: Contract, Invitation to treat, Offer and acceptance Pages: 4 (1555 words) Published: November 10, 2013
1.0 Introduction
Contract--This term, in its more extensive sense, includes every description of agreement, or obligation, whereby one party becomes bound to another to pay a sum of money, or to do or omit to do a certain act; or, a contract is an act which contains a perfect obligation. In its more confined sense, it is an agreement between two or more persons, concerning something to be, done, whereby both parties are hound to each other, or one is bound to the other. After learning the law of contract, we know more about the basic principles of the law governing contracts and use it to solve problems. This assignment includes the explanations of two questions:

Question 1: In this passage, I describe the differences between offer (proposal) an invitation to treat under common law and Malaysian Contracts Act by using several typical examples. Question 2: Here have a case of invitation to treat, and I need to be able to analysis the case by using relevant provisions and case law and evidence my opinion.

2.0 QUESTION 1
Explain and distinguish between an offer (proposal) and an invitation to treat under common law and Malaysian Contracts Act, 1950. Support your discussion with relevant provisions and decided cases. 2.1 Brief Intro

It is important to know the difference between offers and invitations to treat before engaging in any business transactions. As the law makes very clear distinctions between the two, it is up to the buyer and seller to ensure that they follow the correct protocol. While offers are legally binding upon acceptance, invitations to treat are only the prelude to an offer being made or accepted. 2.2 Definitions

2.2.1 Offer (proposal)
What is an offer (proposal)?
An intimation (viewed from an objective standpoint) by words or conduct of a willingness to enter into a legally binding contract, specifying the terms of the binding agreement which will be formed should the offer be accepted by the party to whom it is...
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