Invitation to Treat

Topics: Contract, Offer and acceptance, Invitation to treat Pages: 3 (987 words) Published: January 26, 2013
Mary wet shopping at Maidon Bhd and was attracted to a VCD ‘Chalte Chalte’ displayed on the shelves. Mary looked at the price tag of the VCD and saw that it cost RM15. Mary went to the cashier’s counter to pay for the VCD. The cashier informs her that the actual price of the item was RM45, not RM15. Mary instead that Maidon Bhd had to sell the VCD to her at RM15 as there was a contract between them. Advise both parties. Answer:

1)Whether there is contract between Mary and Maidon Bhd.
To identify whether there is a contract in this cases, first of all, we need to looked at is whether there is an agreement between Mary and Maidon Bhd. Agreement should be occur if there is a proposal or acceptance. According to section 2(a) of the Contract Act 1950, proposal can be defined when one person signifies to another his willingness to do or to abstain from doing anything, with a view t obtaining the assent of that other to the act or abstinence. For example, A says to B that he wants to sell his car to B for certain price with the hope that B will buy his car. Here, A is said to make an offer or proposal as the indicates his willingness to sell. A is called an offerror or proposer and B is called the offerree or acceptor. Meanwhile, acceptance can defined according to section 2(b) as a person who accept the Application

In this problem, an invitation to treat was made by Maidon Bhd when they the VCD ‘Chalte Chalte’ on the shelves. The Maidon Bhd is inviting customers to make a proposal to them. When customers take the VCD to the cashiers counter, they are actually making the proposal and now it up to theMaidon Bhd to accept it or not. Hence, proposal is made by Mary when he took the VCD ‘chalte chalte’ which is the price tag show amount of RM15 to the cashier. It show the Mary willingness or desire to buy that VCD at the price stated with the hope that Maidon Bhd will sell it to him at the price. So, Mary is a proposer. The contract will...
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