Prepared by:

Mohd Hafizee Shahri

BUSINESS LAW
(BLW10103)
Topic 3

LAW OF CONTRACT
 Learning Outcomes

At the end of this lecture, students

should able to:

• Explain elements of a valid contract.

• Describe enforceability of a contract.
• Analyse discharge of a contract.
• Discuss remedies available for a breach
of contract.
 Topic Outline

Elements Enforceability

Discharge Remedies
 Introduction

Daily activities
Individuals Businesses
No contract =
commerce
collapse
 Definition of Contract
• A LEGAL CONTRACT is an agreement between
two or more parties in which legal rights and
obligations are created, and are enforced by a
court.

Agreement Enforceable CONTRACT

ELEMENTS OF CONTRACT
Essential Elements
Offer

Certainty Acceptance

Capacity Intention

Consideration
 1 Element – Offer
st

The MANIFESTATION
OF WILLINGNESS TO
ENTER into a bargain,
so as to justify another
person in
understanding that his
ASSENT TO THAT
BARGAIN IS INVITED
Person making the promise/proposal =
and will conclude it. promisor / offeror /proposer
 How Offer is made

Sec. 9

Express Implied Combination

 Types of Offer

Specific General

Fizee
Mohd Mohd
X
Hafiz
 Conditions of Valid Offer

Certainty

• Offer must be certain, clear, complete

to avoid doubt.

Communication

• Offer must be communicated.

 Communication of Offer

Effective offer
comes to the knowledge
of the person to whom it
is made

Oral Words Written Not Conduct

Words
 Invitation to Treat
Invitation
WILLINGNESS TO ENTER Offer MERE INVITATION
to treat

Advertisements

Auctions Goods displayed in shop

 Revocation of Offer
Failure

Notice Sec. 6 Death

Time lapse

Time to revoke: Sec. 5(1) – at any time before communication of

acceptance is complete as against offeror.

Complete communication – it put into a course of transmission.