Construction Law Overview

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Questions and Answers

What principle was established in the case of Carlill v Carbolic Smoke Ball Co?

Display of goods is an invitation to treat

Formation of an agency relationship

Unilateral contract principle (correct)

Counteroffer cancels the original offer

Which of the following laws governs the rights and liabilities of contracting parties?

Sales of goods law

Agency law

Law of contract (correct)

Law of torts

What does the principle of stare decisis entail?

Previous judicial decisions must be followed (correct)

Courts can only make rulings based on written law

Lower courts can ignore decisions made by higher courts

Court decisions can be revisited at any time

In the context of agency law, which party is known as the principal?

The party granting authority to act (C) Signup and view all the answers

Which case illustrates the concept that a counteroffer cancels the original offer?

Hyde v Wrench (A) Signup and view all the answers

What do express and implied warranties relate to in the sales of goods law?

Quality of goods and ownership transfer (D) Signup and view all the answers

What does the phrase 'invitation to treat' refer to?

An indication of willingness to enter into negotiations (C) Signup and view all the answers

In pharmaceutical sales, what is the consequence of displaying goods in a self-service store?

It is considered an invitation to treat. (C) Signup and view all the answers

Signup and view all the answers

Which principle was established in the case of Carlill v Carbolic Smoke Ball Co?

An advertisement promising a reward is considered a legally binding offer. (B) Signup and view all the answers

Judicial precedents are primarily based on written laws, which are enshrined in statutes and legal codes.

False (B) Signup and view all the answers

What is the significance of the Young v Bristol Aeroplane Co Ltd case in the context of legal precedent?

The Young v Bristol Aeroplane Co Ltd case affirmed the principle of stare decisis, which requires lower courts to follow the decisions of higher courts in similar cases. This ensures consistency and predictability in legal judgments. Signup and view all the answers

The concept of ______ refers to a situation where a party displays goods, but it is not considered an offer to sell. Instead, it is considered an invitation for potential buyers to make an offer.

invitation to treat Signup and view all the answers

Match the following case laws with their relevant legal concept:

Carlill v Carbolic Smoke Ball Co = Unilateral contract Young v Bristol Aeroplane Co Ltd = Stare decisis Gibson v Manchester City Council = Offer vs Invitation to Treat Pharmaceutical Society v Boots Cash Chemists Ltd = Invitation to Treat Hyde v Wrench = Counteroffer Hendry v De Cruz = Stare decisis in Malaysia Signup and view all the answers

Which of these are components of the formation of a contract?

Offer, Acceptance, Consideration, Capacity (B) Signup and view all the answers

The principle of stare decisis applies only in the context of contract law; it does not extend to other areas of law like torts.

False (B) Signup and view all the answers

Explain the difference between a counteroffer and acceptance.

A counteroffer is a response to an offer that changes the terms of the original offer. It essentially rejects the original offer and proposes new terms. Acceptance, on the other hand, is an unqualified agreement to all the terms of the original offer. A counteroffer does not constitute acceptance but creates a new offer that can then be accepted or rejected. Signup and view all the answers

Study Notes

Introduction to the Subject

Covers contract law, agency law, tort law, and sales of goods law.

Relevance to the Construction Industry

Governs relationships between parties.
Provides rights and liabilities of contracting parties.
Remedies for contract breaches.

Law of Contract

Sources of Law

Written laws (e.g., Contract Act 1950, Civil Law Act 1956).
Unwritten laws (e.g., common law, case law, trade customs).

Judicial Precedents and Doctrine of Stare Decisis

Higher courts bind lower courts.
Young v Bristol Aeroplane Co Ltd [1944] principle applies

Formation of Contracts

Offer
Acceptance
Consideration
Legal Capacity
Offer vs Invitation to Treat: Display of goods, advertisements, auctions, catalogues
Communication and Revocation of Offers: Offers must be communicated and are revocable before acceptance.
Postal Rule applies in some cases.

Law of Agency

Formation of agency.
Rights, duties, and liabilities of agents and principals.

Law of Torts

Civil wrongs not covered by contract law.
Covers negligence, nuisance, occupier's liability, trespass.
Professional negligence in the construction industry

Sales of Goods

Laws governing delivery, ownership transfer, and quality of goods.
Express and implied warranties.

Contract Law Cases

Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 (established unilateral contract).
Young v Bristol Aeroplane Co Ltd [1944] 1 KB 718 (doctrine of stare decisis).
Hendry v De Cruz [1949] 15 MLJ Supp 25.
Gibson v Manchester City Council [1979] 1 All ER 972 (offer vs invitation to treat).
Pharmaceutical Society v Boots Cash Chemists Ltd [1953] 1 QB 401(Self-service stores: Displaying goods is an invitation to treat).
Hyde v Wrench [1840] 3 BEAV 344 (Counteroffer cancels original offer).
Adams v Lindsell (1818) 1 B & Aid 681 (Postal Rule).
Felthouse v Bindley (1862) 142 ER 1037 (Silence does not amount to acceptance).

Agency Law Cases

Preston Corp. Sdn. Bhd. v. Edward Leong [1982] 2 MLJ 22

Tort Law Cases

Donoghue v Stevenson [1932] AC 562 (established the negligence principle).
United Malayan Banking Corporation Bhd v Pemungut Hasil Tanah, Kota Tinggi [1984] 2 MLJ 87

Sales of Goods Cases

Chan Cheng Kum & Anor v Wah Tat Bank Ltd & Anor [1971] 1 MLRA 501
Syarikat Batu Sinar Sdn Bhd v UMBC Finance Bhd [1990] 3 MLJ 468 (Importing English law into Malaysian commercial transactions)

Additional Points

Macon Works & Trading Sdn Bhd v Phang Hon Chin & Anor [1976] 2 MLJ 177 (Offer lapses if no acceptance in reasonable time).
Holwell Securities Ltd v Hughes [1974] 1 WLR 155 (Postal Rule does not apply if offer specifically requires notice in writing).

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Description

This quiz explores essential concepts in construction law, including contract law, agency law, tort law, and sales of goods. It addresses the formation of contracts, sources of law, judicial precedents, and the rights and liabilities of contracting parties. Perfect for students and professionals in the construction industry.