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LAW 299
DEPARTMENT OF LAW
MARA UNIVERSITY OF
TECHNOLOGY
LECTURERS CONTACT:
NURULHASNI BT SHAARI
079352165/0194545677
nurul015@johor.uitm.edu.my
COURSE INFORMATION
Code: Law 251
Course: Business Law
Level: Diploma
Credit Unit: 3
Contact Hours: 3
Part: 4
REFERENCES
Manual Law 251, Lecturers Law Department, Uitm
Johor (2011)
Beatrix Vohrah, Wu Min Aun,The Commercial Law of
Malaysia (1996)
Lee Mei Pheng (2005), General Principles of
Malaysian Law. 5th Edition, Penerbit Fajar Bakti Sdn.
Bhd. Kuala Lumpur.
Lee Mei Pheng, Detta Samen (1997), Commercial
Law in Malaysia, Malayan Law Journal, Kuala
Lumpur.
Abdul Aziz Hussin, Undang-Undang Berkaitan Cek
(1996)
NURULHASNI SHAARI (UITMJ)
Objective
LERANING OUTCOMES
At the end of the lecture, students will be able to
To understand the definition of contract
To understand the main element that lead to have a
a valid and binding contract.
To differentiate offer and invitation to treat
To apply the laws when they are involved in the
business or commercial transactions.
LAW OF CONTRACT
1
ELEMENTS AND
FORMATION OF
CONTRACT
DISCHARGE OF
CONTRACT
3 TYPES OF REMEDIES
AVAILABLE
NURULHASNI SHAARI (UITMJ)
INTRODUCTION
The law applicable:
Contracts Act 1950 and case law.
Definition of contractConsensus ad idem.
Is an agreement between 2 or more persons that
is legally binding between them.
Sec 2(h) CA: An agreement enforceable by
law is a contract.
NURULHASNI SHAARI (UITMJ)
ELEMENTS OF CONTRACT
Offer
Acceptance
Consideration
Capacity
Intention to Create Legal Relations
Certainty
Free Consent
OFFER
Also known as promise or proposal.
A proposal made by one party to another
party, with the intention that, that other
party would accept his proposal.
Made by a person called as offeror or
promisor who offers of promises
something to another person.
OFFER
Sec 2(a) CA 1950- A 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.
BOULTON V JONES
Held:
The advertisement was made to
the whole world at large and anyone who is
willing to consume the medicine as
prescribed was said to have accepted the
offer. Furthermore, by depositing 1000 the
defendants had shown their earnest
intention to make a valid contract with their
prospective buyers or consumers. Thus,
Mrs Carlill claimed was successful.
GUTHING v LYNN
Lynn offred to buy a horse from Guthing
on Condition that if the horse brings
luck to him,he will pay another 5
pound extra.
Held: the offer was not
final & incomplete.
Therefore. It was invalid.
Examples of ITT
Advertisement
Display of goods with price tags in a self
service shop
Tender
Price list/Quotation
An auctioneer inviting bids in an auction
sale
Advertisement
-
HARRIS v NICKERSON
Held: an advertisement is only an ITT,
not an offer. There was no contract
between the parties and Harris was not
entitled for any damages from
Nickerson
Fisher v. Bell
Display of several kinds of flick-knives in a
glass shop window is not an offer but only
an invitation to the customers to make an
offer to buy. Whether the offer is accepted
or not, it depends on the discretion of the
shop owner.
Tender
SPENCER v HARDING
Held: the def has the right to reject the
offer because the was no any valid
contract. An announcement / a notice
inviting tenders is only an ITT.
Price list/Quotation
- to give an opportunity to the buyer to
choose the best price.
HARVEY v FACEY
Held: there was no contract between
them. What was done by the plf in
stating the lowest price for the land
was not an offer but only a quotation
which is an ITT.
NURULHASNI SHAARI (UITMJ)
CONCLUSION
THANK YOU.