Tutorial 1 Part 1.docx - TUNKU ABDUL RAHMAN UNIVERSIYTY COLLEGE BBBL2113 INVESTMENT INDUSTRY LAW TUTORIAL 1 LAW OF CONTRACT(OFFER ACCEPTANCE 1 Issue(I

Tutorial 1 Part 1.docx - TUNKU ABDUL RAHMAN UNIVERSIYTY...

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TUNKU ABDUL RAHMAN UNIVERSIYTY COLLEGE BBBL2113 INVESTMENT INDUSTRY LAW TUTORIAL 1: LAW OF CONTRACT (OFFER & ACCEPTANCE) 1) Issue (I): What 2) Law (L): Section & Case Law 3) Application (A): How to apply law onto the question 4) Conclusion (C): No need to mention again the law 1. (a) Ben makes an offer to sell his entire collection of his Cahflow Board Game to Jess for RM100 and his offer shall expire after 7 days. On the 5th day, Ben revokes his offer and informs Jess about his decision. Discuss. Issue of question: Can Ben revokes his offer? First scenario – If Jess already accept Ben’s offer (L+A): According to S5 (1) CA 1950 states that the proposer is allows to revoke his proposal at any time before acceptance is complete against him. Based on the situation given above, offer is existed when Ben makes an offer to sell his entire collection of his Cahflow Board Game to Jess and acceptance is assumed to be made by Jess. Therefore, Ben cannot revoke his offer as his revocation took place after the acceptance made by Jess. Second scenario – If Jess have not accepted Ben’s offer (L+A): According to S6(a) CA 1950 states that for notice of revocation to be effective it must come to the knowledge of the offeree before his acceptance of the offer. Based on the circumstances given, Ben revokes his offer and informs Jess about his decision on the 5 th day and his revocation come to the knowledge of the offeree which is Jess before Jess accept the offer. Therefore, Ben can revoke his offer because his revocation come to the knowledge of the offeree which is Jess and before the acceptance take place. Conclusion: The revocation of Ben’s offer cannot be made by applying S5(1) CA 1950. The revocation of Ben’s offer is complete by applying S6(a) CA 1950. (b) Would you answer be different if Ben has accepted from Jess a RM5 deposit to keep his offer open? Issue of question: There is no offer and acceptance exist where Jess did not accept the offer as Jess only keep Ben’s offer open. Law + Application: When Ben accept the RM5, the revocation cannot be accepted as Ben received RM5 from Jess to keep his offer open if Ben revokes his offer before expiry of 7 days lead to breaching of law/consideration to keep his offer open.
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Conclusion: Therefore, if Ben has accepted from Jess a RM5 deposit to keep his offer open, the revocation cannot be accepted. 2. Consider the following facts: - 1st May – Ali in Alor Setar writes to Muthu in Johor and offers to sell his superbike RX100 for RM15,000 to him. 3rd May – Muthu receives Ali’s letter of offer. In the afternoon of the same day, Muthu posts his acceptance letter together with his cheque for RM15,000 at the Johor post office. 6th May – Thinking that Muthu is not interested, he posts his revocation of his earlier offer to Muthu and on the same day Ali sold his superbike to Ah Chong.
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