Introduction

We enter into contracts every day. These contracts are made orally e.g boarding a
bus buying a coffee at a shop, buying a reload phone card. However sometimes written
contracts are required, such as when buying a house a car. A contract means that there is
an agreement between two parties which is enforceable by law. Offer and acceptance
analysis is a traditional approach in consideration and intention to create legal
relationship between the parties. The others are consideration and intention to create legal
relationship between the parties in forming a contract. The Law of Contract in Malaysia
is governed by the Contract Act 1950. Section 2(h) states that an agreement enforcement
by law is a contract.
In this assignment need to required an agreement, and hire purchase agreement
have been chosen to be discuss on. This hire purchase agreement is about Tan Siok
Ching as a buyer and Mohamad Amran Bin Mohamad Mazuan as a seller car Nissan
Teana 2.0L XE CVT and to implement the five element of valid contract in this
agreement is Proposal/Offer , Acceptance , Intention to Create Legal Relation ,
Consideration , Capacity and Free Concent.
ELEMENT OF A VALID CONTRACT
PROPOSAL OR OFFER AND ACCEPTANCE
Where the agreement is reduced to writing there is usually little doubt about the existence
and content of the agreement. On other occasions, there may be doubt whether , when
and , if so , agreement was reach. In order to investigate such a situation , the law uses
two-stage analysis proposal(offer) and acceptance.
Proposal is made when one person signifies to another his willingness to do or to abstain
from doing anything, with a view to obtaining the assent of that other to such act or
abstinence.

When the person to whom the proposal is made signifies his assent thereto, the proposal
is said to be accepted.
The first step towards creating a contract is that one person shall signify or make a
proposal or offer to the other, with a view to obtaining the acceptance of that another
person to whom the offer is made. A proposal when accepted become a promise.
When the person to whom the proposal is made signifies his assent there of the proposal
is said to be accepted. A proposal is when accepted becomes a promise. When there is a
proposal and acceptance, there is an agreement made between these parties
The Offer

Must be communicated
Must be definition/clear statement
Can be revoked at any time prior to acceptance.
Can be individual or all people.
Must be reach to other person.
Must be distinguished from an invitation to treat which is where a party
communicates that it is prepared to enter negotiations with a view to forming a
contract.

The Acceptance

Must be communicate
Unconditional and absolute
The process made with reasonable time
The process made with reasonable time
Must be the offer made , otherwise it could be a counter offer.