Sec 2b contract act 1950 say that when the person to

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Sec. 2(b) Contract Act 1950 say that: “ when the 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;”
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ELEMENTS OF ACCEPTANCE 1. The acceptance of that proposal must be absolute and unqualified by virtue of section 7(a). CASE : HYDE V. WRENCH [1840] 3 Beav. 344 ER 132 The Def. offered to sell his estate to the Pl. on 6 Jun for 100 pound. On 8 June, in reply, the Pl. made a counter proposal to purchase at 950 pound. When the Def. refused to accept this offer on 27 June, the Pl. wrote again that he was prepared to pay the original sum demanded. The Court held that no contracted existed between them. The Pl. had rejected the original proposal on 8 June so that he was no longer capable of accepting it later. 2. An acceptance must be made within a reasonable period under section 6(b).
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ELEMENTS OF ACCEPTANCE 3. Acceptance must be expressed is some usual and reasonable manner, unless the proposer prescribe the manner in which it is to be accepted under section 7(b). Sec . 7(b) “ In oder to convert a proposal into a promise the acceptance must- (b) be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. If the proposal prescribes the manner in which it is to be accepted, and the acceptance is not made in that manner, the proposal may within a reasonable time after the acceptance is comunicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but, if he fails to do so, he accepts the acceptance.
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COMMUNICATION OF ACCEPTANCE 1. Acceptance is only effective when it has been communicated. It’s can be made by word or mouth, letter, telex, facsimile or recorded message. 2. In England, the communication of acceptance is complete upon posting. 3. In Malaysia the Contract Act stipulates different times when the communication of an acceptance is complete. - Section 4(2)(a) To Offeror when it is put in a course of transmission to him. - Section 4(2)(b) To Offeree when it comes to the knowledge of the Offeror
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CASE : IGNATIUS V. BELL [1913]2 F.M.S.L.R.115. Court held that there can still be an agreement because the Offeror, though having no knowledge of the acceptance, is bound whilst the acceptor, because his acceptance had not come to the knowledge of the proposer, is not bound.
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REVOCATION OF OFFER AND ACCEPTANCE 1. Section 5(1) provide that a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. 2. A proposal may be withdrawn in any of the following circumstances: 2.1. Communicating the notice of revocation by the proposer to the party to whom the proposal was made under section 6(a).
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  • Fall '17
  • MR TAY
  • Court of Appeal

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