Law of Contract Acceptance

COURSE LEARNING OUTCOME(CLO) Summarize clearly the basics Malaysian Legal System which includes the division and the sources of Malaysian Law Illustrates precisely the position of the law of contract and law of agency and related provisions under the Contract Act 1950 (Revised 1974) Discuss cooperatively the law regarding negotiable instruments and related provisions under Bills of Exchange Act 1949 ( Revised 1978)

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Conclusion: Where a reward is offered to any person who does a certain thing, it follows that any person may accept. It is clear that a party intends their words or conduct to constitute an offer The plaintiff was entitled to the 1000p as she had accepted the offer made to the world at large.

Defination of Acceptance S2(b) of Contracts Act laid down. “when the person to whom the proposal is made signifies his assent thereto, the proposal is to be accepted a proposal, when accepted, becomes promise”

Defination of Acceptance Section 2(c)of the Contract Act 1950 Refers to the person accepting the proposal as the ‘promisee’

Section 9 of the Contracts Act There is an expressed acceptance if the acceptance of any promise is made in words An implied acceptance if the acceptance is made other than in words.

Rules Regarding Acceptance How Made Acceptance of an offer may be made orally Acceptance of an offer may be made by conduct Acceptance of an offer may be made writing

Manner of an Acceptance Must be unqualified Must be absolute S7(a) of the Contracts Act

This means that the acceptances must be absolute and must conform exactly with the terms of the offer. Thus if the offeree is required to perform an act or to pay a sum money, the act must be performed or the sum mentioned paid exactly

Neale v Merrett M offered to sell land to N for 280p. N replied purporting to accept and enclosed 80p, promising to pay the balance of 200p by monthly instalments of 50p each. Held: That N could not enforce acceptance because his acceptance was not an unqualified one.

Hyde v Wrench A purported acceptance which is qualified by the introduction of a new term may be considered by the courts as a counter-offer destroying the original offer

Manner of an Acceptance Unless the proposal prescribes the manner in which it is to be accepted. Be expressed in some usual and reasonable manner S7(b) of the Contracts Act

The proposer cannot prescribed silence as a manner of acceptance. Felthouse v Bindley

Acceptance must be made within a reasonable time Ramsgate Victoria Hotel Ltd v Montefiore M applied for shares on 8 June but he was not told until 23 Nov that his offer had been accepted and that shares had been allotted to him and the balance owing on the shares was now due. M refused to pay and the company threatened to sue alleging breach of contract. Held: The offer to purchase shares had not been accepted within a reasonable time and the offer had therefore lapse. There was no contract created

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Song: The Offers Real Video

Acceptance by Post Not when the letter is posted An offer has no effect until it reaches the offeree S4(1)

Acceptance by Post : the communication of an acceptance is complete: As against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor S4(2)(a)of the Contracts Act As against the acceptor, when it comes to the knowledge of the proposer S4(2)(b)of the Contracts Act

Murni wrote offering to sell her house at a price of RM Mamat accepts Murni’s poposal by a letter sent by post. The comunication of the acceptance is complete As against Murni when letter of acceptance is posted by Mamat As against Mamat when letter of acceptance is received by Murni

Adam v Lindsell On 2 Sept, A wrote offering to sell wool at a price, and requesting an answer in course of post. The letter was misdirected and reached L on 7 Sept. The reply of acceptance was send at once and reached A on 9 Sept, but the wool had been sold on 8 Sept Held: That there was agood contract between A and L because the offer was accepted at once on being received Where an offer is made and accepted by letters sent through the post, the contract is made the moment the letter accepting the offer is posted, eventhough it never reaches its destination For the above rules to apply, the letter of acceptance must be prepaid,properly addressed and properly posted. The handling of aletter to a postman is not a proper posting.

REVOCATION OF A PROPOSAL AND AN ACCEPTANCE The proposer may revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards Section 5(1) An acceptance may be revoked at any time before the communication of acceptance is complete as against acceptor, but not afterwards. S 5(2)

A propose, by a letter sent by post, to sell his house to B B accepts the proposal by a letter sent by post A may revoke his proposal at any time before B posts his letter of acceptance, but not afterwards B may revoke his acceptance at any time before when the letter communicating it reaches A, but not afterwards

COMMUNICATION OF A REVOCATION Section 4(3)(b) of the Contract Act The communication of a revocation is complete: as against the person who makes it is put a course of transmission to a person to whom it is made, so as to be out of power of person who makes it and against to whom it is made, when it comes to his knowledge

COMMUNICATION OF A REVOCATION A revokes his proposal by telegram. The revocation is complete as against A when the telegram is despatched. It is complete as against B when B receives it.. B revokes his acceptances by telegram. B’s revocation is complete as against B when the telegram is despatches. It is complete as against A when A receives it.

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Question: Drinks Machine Contract Video

Mama Miaw advertised in a newspaper, an offer of reward of RM1.000 for the return of her Persian cat. Adik was on the way to school when he found the Persian cat. He recognised the cat and returned it to Mama Miaw. Two days later, he read the newspaper and learnt about the reward advertised by Mama Miaw. He wants to claim the reward. Advise Adik.

A customer shopping at a supermarket makes a valid contract with the retailer when a) she puts the goods in the trolley. b) she gives the goods to the cashier. c) the cashier accepts payment for the goods. d) she collects the goods after paying for them..

An offer is a) a proposal made by the offeree b) a proposal accepted by the offeror c) a proposal made by the offeror d) a proposal accepted by the promisor

On 1st February 2010, Ben wrote to Roy offering to sell his cat, Awie, at the price of RM2000. Ben gave Roy until 10th February to accept his offer. Roy received the letter on 3rd February 2010 and posted the letter accepting Ben's offer on 9th February Ben however has changed his mind in selling Awie. He posts a letter to Roy on 7th February 2010 revoking his offer. Roy received the letter of revocation on 10th February 2010 and Ben received Roy's letter of acceptance on 12th February Advise Roy on whether a contract has been constituted.

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