Podcast
Questions and Answers
What distinguishes an express promise from an implied promise in contract law?
What distinguishes an express promise from an implied promise in contract law?
According to the Contracts Act, how is the communication of a proposal completed?
According to the Contracts Act, how is the communication of a proposal completed?
What can render an offer invalid in contract negotiations?
What can render an offer invalid in contract negotiations?
Which of the following is an example of an invitation to treat?
Which of the following is an example of an invitation to treat?
Signup and view all the answers
Which statement best reflects the relationship between an offer and acceptance?
Which statement best reflects the relationship between an offer and acceptance?
Signup and view all the answers
Which case highlights the distinction between an offer and an invitation to treat?
Which case highlights the distinction between an offer and an invitation to treat?
Signup and view all the answers
What must be established for a valid contract to exist after an offer is accepted?
What must be established for a valid contract to exist after an offer is accepted?
Signup and view all the answers
What does it mean for a proposal to be communicated according to S.3 of the Contracts Act?
What does it mean for a proposal to be communicated according to S.3 of the Contracts Act?
Signup and view all the answers
What is the legal classification of the advertisement for the Carbolic Smoke Ball Company?
What is the legal classification of the advertisement for the Carbolic Smoke Ball Company?
Signup and view all the answers
Which case established that advertisements usually represent an invitation to treat (ITT)?
Which case established that advertisements usually represent an invitation to treat (ITT)?
Signup and view all the answers
In the context of the pharmaceutical case, when is an offer considered to be made?
In the context of the pharmaceutical case, when is an offer considered to be made?
Signup and view all the answers
What essential factor indicated the intention to be bound in the Carbolic Smoke Ball advertisement?
What essential factor indicated the intention to be bound in the Carbolic Smoke Ball advertisement?
Signup and view all the answers
Which of the following statements about 'flick knives' is accurate based on legal implications?
Which of the following statements about 'flick knives' is accurate based on legal implications?
Signup and view all the answers
What is required for an offer to be legally revoked?
What is required for an offer to be legally revoked?
Signup and view all the answers
In Preston Corp Sdn Bhd v Edward Leong, how was the contract formed between the printing company and the publisher?
In Preston Corp Sdn Bhd v Edward Leong, how was the contract formed between the printing company and the publisher?
Signup and view all the answers
In the context of revocation, which of the following scenarios does NOT fulfill the criteria for revocation?
In the context of revocation, which of the following scenarios does NOT fulfill the criteria for revocation?
Signup and view all the answers
Which aspect is critical to determine whether an advertisement constitutes an offer or an invitation to treat?
Which aspect is critical to determine whether an advertisement constitutes an offer or an invitation to treat?
Signup and view all the answers
Which statement reflects the legal concept of an Invitation to Treat (ITT)?
Which statement reflects the legal concept of an Invitation to Treat (ITT)?
Signup and view all the answers
What is an important legal implication regarding the sale of 'controlled items' like medication in pharmacies?
What is an important legal implication regarding the sale of 'controlled items' like medication in pharmacies?
Signup and view all the answers
What is considered a reasonable time for revocation when no specific time is prescribed?
What is considered a reasonable time for revocation when no specific time is prescribed?
Signup and view all the answers
In the case of Dickinson v Dodds, what was the consequence of the third party's involvement?
In the case of Dickinson v Dodds, what was the consequence of the third party's involvement?
Signup and view all the answers
What role does a condition precedent play in the acceptance of an offer?
What role does a condition precedent play in the acceptance of an offer?
Signup and view all the answers
According to the Contracts Act 1950, how can an offer be revoked effectively?
According to the Contracts Act 1950, how can an offer be revoked effectively?
Signup and view all the answers
How does the death or mental incapacity of the proposer affect the offer?
How does the death or mental incapacity of the proposer affect the offer?
Signup and view all the answers
A contract requires all five elements: offer, acceptance, consideration, intention to create legal relations, and capacity.
A contract requires all five elements: offer, acceptance, consideration, intention to create legal relations, and capacity.
Signup and view all the answers
Consideration is deemed unnecessary if a contract is in written form.
Consideration is deemed unnecessary if a contract is in written form.
Signup and view all the answers
An offer is made only when a quotation is issued.
An offer is made only when a quotation is issued.
Signup and view all the answers
An invitation to treat cannot lead to a binding contract until a formal acceptance occurs.
An invitation to treat cannot lead to a binding contract until a formal acceptance occurs.
Signup and view all the answers
Witnesses and signatures are mandatory for a normal business contract to be valid.
Witnesses and signatures are mandatory for a normal business contract to be valid.
Signup and view all the answers
An express promise in a contract is made only in writing.
An express promise in a contract is made only in writing.
Signup and view all the answers
An invitation to treat is a legally binding offer.
An invitation to treat is a legally binding offer.
Signup and view all the answers
If a proposal is communicated to an offeree, the communication is complete even if the offeree has not yet acknowledged it.
If a proposal is communicated to an offeree, the communication is complete even if the offeree has not yet acknowledged it.
Signup and view all the answers
A vague offer, such as promising to build a suitable building, can be considered valid.
A vague offer, such as promising to build a suitable building, can be considered valid.
Signup and view all the answers
The display of goods in a shop window is considered an offer.
The display of goods in a shop window is considered an offer.
Signup and view all the answers
In Preston Corp Sdn Bhd v Edward Leong, the terms of an offer must be impliedly indicated to form a binding contract.
In Preston Corp Sdn Bhd v Edward Leong, the terms of an offer must be impliedly indicated to form a binding contract.
Signup and view all the answers
An invitation to treat can lead directly to the formation of a contract.
An invitation to treat can lead directly to the formation of a contract.
Signup and view all the answers
A promise is formed as soon as an offer is made, regardless of acceptance.
A promise is formed as soon as an offer is made, regardless of acceptance.
Signup and view all the answers
An offer must be communicated, clear in meaning, and signify a willingness to enter a legal contract.
An offer must be communicated, clear in meaning, and signify a willingness to enter a legal contract.
Signup and view all the answers
Quotations are always considered legally binding offers.
Quotations are always considered legally binding offers.
Signup and view all the answers
For an offer to exist, it must comply with the legal requirements set forth in relevant laws.
For an offer to exist, it must comply with the legal requirements set forth in relevant laws.
Signup and view all the answers
An offer can only be made explicitly and cannot be implied.
An offer can only be made explicitly and cannot be implied.
Signup and view all the answers
A non-existent offer can still be accepted under contract law.
A non-existent offer can still be accepted under contract law.
Signup and view all the answers
The statement 'All prices quoted are at Nett, and subject to final confirmation upon receipt of your order' represents a binding offer.
The statement 'All prices quoted are at Nett, and subject to final confirmation upon receipt of your order' represents a binding offer.
Signup and view all the answers
The case of Affin Credit (Malaysia) Sdn Bhd v Yap Yuen Fui illustrates that fulfilling conditions precedent is necessary for a valid offer.
The case of Affin Credit (Malaysia) Sdn Bhd v Yap Yuen Fui illustrates that fulfilling conditions precedent is necessary for a valid offer.
Signup and view all the answers
An offer made in a letter does not need to be communicated to the offeree to be valid.
An offer made in a letter does not need to be communicated to the offeree to be valid.
Signup and view all the answers
A flick knife is defined as a knife that opens automatically by hand pressure from a button, spring, or other device attached to the handle.
A flick knife is defined as a knife that opens automatically by hand pressure from a button, spring, or other device attached to the handle.
Signup and view all the answers
In the case of Partridge v Crittenden, advertisements are always considered offers.
In the case of Partridge v Crittenden, advertisements are always considered offers.
Signup and view all the answers
The Carbolic Smoke Ball advertisement was deemed a unilateral contract because it was made to the whole world.
The Carbolic Smoke Ball advertisement was deemed a unilateral contract because it was made to the whole world.
Signup and view all the answers
The act of placing items in a wire basket in a pharmacy constitutes an official offer to purchase those items.
The act of placing items in a wire basket in a pharmacy constitutes an official offer to purchase those items.
Signup and view all the answers
Mrs. Carlill's acceptance of the Carbolic Smoke Ball advertisement was valid because the company had deposited money in a bank as a sign of sincerity.
Mrs. Carlill's acceptance of the Carbolic Smoke Ball advertisement was valid because the company had deposited money in a bank as a sign of sincerity.
Signup and view all the answers
Revocation of an offer does not require a specific method or adherence to regulations.
Revocation of an offer does not require a specific method or adherence to regulations.
Signup and view all the answers
A person selling or offering for sale a controlled item, such as medication, must comply with specific legal provisions.
A person selling or offering for sale a controlled item, such as medication, must comply with specific legal provisions.
Signup and view all the answers
Intention to be bound in a contract can only be determined through written agreements.
Intention to be bound in a contract can only be determined through written agreements.
Signup and view all the answers
A proposal can be revoked only by the proposer communicating a notice of revocation directly to the other party.
A proposal can be revoked only by the proposer communicating a notice of revocation directly to the other party.
Signup and view all the answers
In the case of Dickinson v Dodds, the plaintiff was able to accept the offer even after being informed that the house had been sold to a third party.
In the case of Dickinson v Dodds, the plaintiff was able to accept the offer even after being informed that the house had been sold to a third party.
Signup and view all the answers
A proposal may be revoked after the communication of acceptance is complete.
A proposal may be revoked after the communication of acceptance is complete.
Signup and view all the answers
A reasonable time for acceptance is predetermined by the proposer in every case.
A reasonable time for acceptance is predetermined by the proposer in every case.
Signup and view all the answers
The death of the proposer automatically invalidates the proposal regardless of whether the acceptor is informed.
The death of the proposer automatically invalidates the proposal regardless of whether the acceptor is informed.
Signup and view all the answers
A proposal is revoked if the condition precedent to acceptance is not fulfilled by the acceptor.
A proposal is revoked if the condition precedent to acceptance is not fulfilled by the acceptor.
Signup and view all the answers
Communication of revocation can take place through an intermediary as long as the message is relayed.
Communication of revocation can take place through an intermediary as long as the message is relayed.
Signup and view all the answers
Once a proposal is made, it remains valid indefinitely until accepted.
Once a proposal is made, it remains valid indefinitely until accepted.
Signup and view all the answers
An offer can still be accepted after the death of the proposer if the acceptor is unaware of the death.
An offer can still be accepted after the death of the proposer if the acceptor is unaware of the death.
Signup and view all the answers
An obligation in a contract can be conditionally bound on an event that is excused if the event does not occur.
An obligation in a contract can be conditionally bound on an event that is excused if the event does not occur.
Signup and view all the answers
Death generally operates as a revocation of an offer in all cases.
Death generally operates as a revocation of an offer in all cases.
Signup and view all the answers
If conditions precedent to acceptance are not met, the offer is irrevocably accepted.
If conditions precedent to acceptance are not met, the offer is irrevocably accepted.
Signup and view all the answers
A proposer’s mental disorder can excuse the acceptor from proceeding with acceptance if the disorder is known prior to acceptance.
A proposer’s mental disorder can excuse the acceptor from proceeding with acceptance if the disorder is known prior to acceptance.
Signup and view all the answers
In the case of Aberfoyle Plantations Ltd v Khaw Bian Cheng, the buyer is required to pay the remaining price regardless of lease renewal.
In the case of Aberfoyle Plantations Ltd v Khaw Bian Cheng, the buyer is required to pay the remaining price regardless of lease renewal.
Signup and view all the answers
Section 38(2) of the Contracts Act specifies that promises bind the representatives of the promisors only if explicitly stated in the contract.
Section 38(2) of the Contracts Act specifies that promises bind the representatives of the promisors only if explicitly stated in the contract.
Signup and view all the answers
The principle of general application states that if a contract obligation is conditional, it binds both parties to perform regardless of the event's occurrence.
The principle of general application states that if a contract obligation is conditional, it binds both parties to perform regardless of the event's occurrence.
Signup and view all the answers
Study Notes
Formation of a Contract
- A contract is a legally binding agreement, not just an agreement.
- Key requirements for a contract:
- Offer
- Acceptance
- Consideration
- Intention to create legal relations
- Capacity
Dealing with a Normal Business Contract
- Normal business contracts don't require witnesses, to be in writing, use a guarantor, or stamp duty.
- These are basic requirements.
Elements of a Written Contract
- Offer
- Acceptance
- Intention
- Consideration
- Capacity
Valid Offer
- Must meet legal requirements.
- Must be clear in meaning.
- Express or implied.
- Must be communicated to the offeree.
- A statement that is binding at law.
Preston Corp Sdn Bhd v Edward Leong
- The case involved a printing company (respondent) and a publishing company (appellant).
- Quotations were exchanged, and the publishing company issued printing orders.
- The court held that the quotations acted as an invitation to treat and the printing orders constituted the offer.
Invitation to Treat
- An indication of willingness for an offer to be made.
- Not a binding statement.
- Examples include:
- Display of goods
- Pamphlets
- Advertisements
- Tenders
Display of Goods
- Goods displayed in a shop are invitations to treat, not offers.
- Buyer makes the offer when they present the item to the cashier.
Advertisements
- Advertisements are usually invitations to treat, not offers.
- The wording matters and should show an intention to be bound.
- Ads may be offers if the wording communicates an intention to be bound.
- Carlill v Carbolic Smoke Ball Co. – An advert was held to be an offer as it explicitly stated a reward.
Tender
- A formal invitation to submit bids from suppliers for a particular project.
Revocation
- A proposal may be revoked before acceptance.
- May revoke an offer based on notice to other party.
- Method of revocation, Lapse of time, Failure to fulfill a condition, Death or mental disorder.
- Dickinson v Dodds - An offer is revocable any time before acceptance. It does not need to be communicated by a third party.
- Bradbury v Morgan - Death only revokes an offer if the service required for the offer is personal.
Important Cases and Terminology
- Ahmad Meah & Anor v Nacodah Merican: vague offer (house) is invalid due to lack of clear meaning.
- Affin Credit (Malaysia) Sdn Bhd v Yap Yuen Fui: offer does not comply with legal requirements. Offer did not include summary of obligation.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the essential components of a contract, including the key requirements and elements for both normal business contracts and written contracts. Additionally, it discusses a relevant legal case to illustrate these concepts in practice.
