acceptance (2).pdf - PROPOSAL AND ACCEPTANCE The first requisite of a contract is that the parties should have reached agreement Generally speaking an

acceptance (2).pdf - PROPOSAL AND ACCEPTANCE The first...

This preview shows page 1 - 3 out of 11 pages.

Mr. Mohd Ab Malek bin Md Shah / LAW416 / 299 / 446 / 385 UiTM KBM Page 1 PROPOSAL AND ACCEPTANCE The first requisite of a contract is that the parties should have reached agreement. Generally speaking, an agreement is made when one party accepts an offer made by the other party. Store v Manchester CC [1974] W.L.R 1403 A proposal is an expression of willingness to do contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the other person to whom it is addressed. An agreement between two or more parties is constituted by a proposal and an acceptance of it Section 2(a) Contracts Act 1950 A proposal is made … 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‟ Although the word proposal is used in the act, it carry‟s the same meaning as “offer” in the English law. It can be inferred that the proposal has become a promise and then he is called the promisor and the person accepting the promise is called the promisee. eg Azizul offers to buy Samdan‟s car for RM10,000/ -. Azizul is making a proposal, hoping that Samdan will accept. When Samdan accepts the offer, an agreement or promise between them is created. In the above situation Azizul is the offeror and Samdan is the offeree. An offer must be clear, complete, final and specific to avoid any vagueness. Guthing v Lynn (1831) 2B & AD 232 Lynn offered to buy a horse from Guthing. He was to pay 5 pounds extra if the horse brought him good luck. The condition laid was held by the court to be too vague to constitute a binding contract. Tan Geok Khoon & Gerald Francis Robless v Pava Terubong Estate Sdn Bhd [1988] 2 MLJ 672 Plaintiff were executors and trustees of deceased‟s estate. They clai med various correspondence between the deceased and the defendant constituted a contract. The court agreed because the deceased had agreed to and accepted a counter offer from the defendant and paid the balance of the price. Defendant had accepted payment by issuing a receipt signed by a director. TO WHOM CAN A PROPOSAL BE MADE A proposal may be addressed either to an individual, or to a group of persons, or to the world at large,
Image of page 1
Mr. Mohd Ab Malek bin Md Shah / LAW416 / 299 / 446 / 385 UiTM KBM Page 2 and may be made expressly or by conduct. See Carlill v Carbolic Smoke Ball Co. a) a particular person X went to Y‟s shop and offered to buy a pair of shoes. X‟s offer cannot be accepted by Z who owns a shoe shop nearby because he overheard X‟s offer. Section 2(b) Contracts Act provides that … when a person to whom the proposal is made” which appears to say that only the addressee may accept the proposal. Boulton v Jones (1857) 2H & N 564 Defendant had business dealing with a shopkeeper named Brocklehurst. The defendant had ordered some stocks from B but on the day of the order B had sold his business to the Plaintiff. The Plaintiff delivered the goods without informing the Defendant of the change of ownership.; The Defendant then
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 11 pages?

  • Fall '15

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes