The intent of this assignment is to sketch the engagement of 4 different parties and been given with advice and legal power based on the Malaysian Contracts Act 1950. Here, the elements of contracts are examined, studied and defined for every possible circumstance and scenarios that had happen. Hence, the parties that involved severally are Itua the man of affairs which intend to spread out his concern hereinafter referred to as Itua. Baju Murah the costumes supplier hereafter referred to as BM. Baju Lagi Murah the 2nd costumes supplier hereafter referred to as BLM and in conclusion Wong the possible rivals hereinafter referred to as Wong. In between, Itua had purpose to do a purchase of costumes from two of the mentioned providers which is BM and BLM. He so besides came across with Wong the possible rival from his friend Sunil. Out of several fortunes and chitchat, he wanted to revoke all the promises, and on the absence of Law cognition, Itua is seeking for professional legal advice to warrant his current duty. Itua is advised by the attorney that before the promiser and promisee reached into a contractual relationship, there must be equal engagement of the mentioned elements of contract. For this ground, Itua is advised under the Malaysian context jurisprudence governed by the CA 1950.

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Elementss of Contract Law

The fundamental laws of contracts in Malaysia are governed under the Malaysian CA 1950 ( Act 136 – Revised 1974 ) . Whereby, the word, contract itself exhibits a series of indispensable components, was named with – The component of contracts. Notably, in order to makes two party adhering under an official contracts, it must fulfill at least an component of contracts which viz. Offer, Acceptance of Offer, Intention to Create Legal Relations, Consideration, Certainty and Capacity. [ Textbook page 77 ] A successful understanding started from a consecutive offer. As stated severally in the Section 2 ( a ) & A ; ( B ) of CA 1950, offer was a meaning of willingness for an person to go adhering with another under certain contract footings, and with the consciousness of the purpose of such offering shall go contract every bit shortly as credence are present. [ The contract jurisprudence 1950 – subdivision 2 ] Furthermore, an offer made must be clearly identified as an offer or simply an invitation to handle. An invitation to handle is an invitation to offer, hence, no elements of contracts are satisfied. Besides stated in Section 4 ( 1 ) of CA 1950, the proposal are ought to be entirely acknowledged by whom it is made to turn to and it can be either by expressed or implied. [ The contract jurisprudence 1950 – subdivision 4 ] In concurrence to change overing an offer into a lawfully bind contract, credence of offer must show and it must be absolute, concluding and unqualified. [ Section 7 ( a ) of CA 1950 ] Most notably, in Section 7 ( B ) of CA 1950, credence of offer must be distinguished whether of a counter-offer has been made. As it every bit stand for the rejection of the initial offer and induces the alteration of initial ‘s offer prescribes mode, the change of such an offer are non merely to first offer, therefore, credence can be revoke within a sensible clip or otherwise. Whereby for the annulment to be effectual, it must be communicated to whom it is to be address and allow another party acknowledged such notice to finish the cancelation of an offer as stated in Section 6 ( a ) of CA 1950. [ The contract jurisprudence 1950 – subdivision 4 & A ; 6 ] Furthermore, in Ignatiues vs. Bell a postal regulation has been applied. So far as postal regulation concern, it determined whether or non the credence are intended to be done in authorship, and if merely the promiser and promisee agreed on utilizing such method in organizing a legal understanding. However, the postal regulation applied merely if any parties posting a registered mail through a recognized station office and had dropped the mail into the mail box. If otherwise, postal regulation are nothingness. Another component of contracts is the Intention to make legal dealingss. Although, in the Malayan context of CA did non denote such an component is mandatory to organize a valid contract, someway, in the instance of Guha Majumder vs. Donough, such component are being held as a strong indicant for deficiency of purpose and hence no legal relationships are intended. For an case, both parties must hold purpose to make legal dealingss with each other and ordering the obligatory demands. [ Textbook page 94-95 ] Follow by is the Consideration of a contract, stated that an understanding without consideration is null. [ Section 26 of CA 1950 ] Further into elucidation, in Section 2 ( vitamin D ) of CA 1950 says that, consideration are to be given to promisee to hold alternate picks for do or abstains from it and are non suppose to be or experience like bounded to an duty on the beginning of understanding. On top of that, Certainty is another of import component of contracts. For an case, one should supply a lawful consideration and with a lawful object to guarantee the transition of understanding into contract. Therefore, certainty to such an object must be specific, exact and unqualified at the first point in order to further a contract to be lawfully bounded at ulterior consideration. [ The contract jurisprudence – subdivision 30 ] The last elements of contracts speak as a mean of Capacity. It implies the competent of a individual to be bounded with a contract. The contract jurisprudence implies, one that is an grownup, who is physic and mental tantrum, and is ready to be bound under a contract via any jurisprudence to which he is capable

Advice of Contractual Relationships with Wong

Bing notice that Wong is a possible rival from Itua ‘s friend – Sunil, stating that Wong are supplying the services that likely the same with Itua concern enlargement ‘s field which is costumes hire. On top of that, Wong supplying make-up and hair salon in Miri, moreover, he besides equipped with fancy sweets and every bit good party ornaments. Itua is questioned if there is any contractual relationship with Wong. Hence, the fact of which it shown is simply communicating of information and a normal conversation with Sunil. Thus, the information provided in the scenario is deficient to reason any contractual duty between Wong and Itua. Further justification proved that there is no presence of elements ordering contracts in this instance. There is no promise being made in the signifier of implied or express. As defined in Section 9 of CA 1950, if there is no offer or credence of any promise either by words or other than words, so it does non fulfill the legal demands of CA. [ The contract jurisprudence – subdivision 9 ] Besides that, Itua and Wong are classified into one-sided relationship. Equally far as the scenario shown, there is n’t any bilateral formation among both of them. The inexistence of any signifier of communicating and interaction with Wong concluded that there is no constitution of contractual relationship with Itua but merely as a possible rival and industrial relationship with him one-sidedly.

Advice of Contractual Relationships with BM

One the facts, Itua are held with directing a facsimile to BM which he clearly saying that “ I am interested in purchasing the aggregation of costumes in your back cupboard. The highest monetary value I pay would be RM5000.00 for the batch ” . In such a scenario, Itua are prosecuting himself with the first component of contract. Offer, as prescribed in the Section 2 ( a ) & A ; ( B ) of CA 1950 is a meaning of willingness for an person to go adhering with another under certain contract footings, and with the consciousness of the purpose of such offering shall go contract every bit shortly as credence are present However, such battle is capable to farther justification of whether a house offer or an invitation to handle has been made. From the facsimile statement, we come to cognize that Itua is meant that he would wish to purchase the costumes and the highest promise he want or he probably to pay would be RM5000.00. Therefore, it is non concluded as an offer, but it is an invitation to handle for BM. The statement speaks itself and it appeared to be an upside-down invitation for BM in doing consideration for the coveted merchandising monetary value. Again, an invitation to handle is simply an invitation to doing an offer. So an invitation to handle is non an indispensable elements of contract, but it act as a measuring of whether the potency of Itua ‘s facsimile constitutes a valid offer, therefore, at this point concluded that Itua did non fulfill the first component of contract – offer. Second component of contracts which is credence of offer, from the facts signifies that there is no offer and credence from BM when Itua sent his facsimile. BM did non do any credence instantly after such an invitation to handle is given. Therefore, in Section 7 ( a ) of CA 1950 defined that credence of offer must show to reason a contractual understanding when it appears to be absolute and unqualified to the consent of the promiser. Therefore, BM failed to carry through the 2nd elements of contract. Itua are so advised with his annulment chance. He did steal a piece of note under the door at BM and saying that “ he no longer interested in their costumes ” during the dark after he being told by his friend Sunil sing Wong ‘s costumes hire store. Later, Sunil besides told the director of BM and stating that Itua wants to call off the purchase. In this phase, the facts shown that there has been no postal regulation engagement in this scenario as defined in Section 4 of CA 1950, as postal regulation necessitating a proper registered mail and being dropped into a letter box. Nevertheless, the aforesaid regulation will demo no injury to Itua because it does n’t represent any indispensable elements of contracts, yet, no offer or credence been made since the really get downing. On the other manus, after BM director learned Itua renege ‘s purpose from Sunil, he rapidly telephoned and left Itua a voice mail stating that “ they accept his offer to buy the costumes for RM5000.00 and will presenting it on Friday ” . At this case, BM director is more likely to sounds like doing Itua an offer of the coveted merchandising monetary value than to be said as an credence of Itua ‘s offer. Additionally, [ B.T.H. Lee J, page 81 of text edition ] said a “ insouciant conversation whether on the telephone or otherwise is really much hard to deduce that the parties are truly contemplating come ining into any legal relationships ” . It proved that, the voice mail are to tilt to be assumed as credence of offer. Besides that, another annulment point is as stated in Section 4 ( 3B ) of CA 1950 ; the communicating of annulment is complete when it comes to the cognition of the offeree. It was entirely due to Sunil has already told Itua purpose to BM and nevertheless, BM still insist of making concern with Itua by looking frontward to be lawfully bind with Itua. Therefore, this subdivision told us about the 3rd party regulations which happen in blablabla vs. hohoho [ Bernard books about 3rd party ] Therefore, Itua held no contractual relationship with BM but merely a possible concern relationship and annulment is possible in this scenario as no component of contracts are satisfied

Advice of Contractual Relationships with BLM

In this instance, Itua visited to another costumes aggregation which is BLM and this is where his good friend Sylvester, is the director. He made an offer to Sylvester stating that if BLM will accept RM3000.00 for their costumes aggregation, and whether they will present the costumes on following Monday. As defined in Section 2 ( a ) & A ; ( B ) of CA 1950, offer was a meaning of willingness for an person to go adhering with another party when credence are present. However, Sylvester replied instantly that he would necessitate to look into with his Board of Directors if they wanted to allow travel of the costumes aggregation. However, Sylvester are certain to extinguish a status, which BLM will non present the costumes. The facts show that Sylvester are changing Itua foremost offer, hence defined in Section 7 ( a ) & A ; ( B ) of CA 1950, the credence must be absolute and unqualified, be executed as in the original prescribed mode and if otherwise, unless it is good communicate between mutual and reached a consensus or it shall be null. Furthermore, Itua once more doing a 2nd offer which he agrees to pay to hold the costumes delivered. For this case, Sylvester remain soundless until farther verification from his Board of Directors. The aforesaid had shown that there is no credence been made for the offer but farther credence is capable to consideration. In Section 8 of CA 1950 reads, should there is “ public presentation of the conditions of a proposal, or credence of any consideration for a mutual promise which offered with a proposal, is an credence of the proposal ” . For this ground, the credence did non take topographic point, because Sylvester need to foster the treatment with his Board of Directors, therefore, it did non fulfill the component of contracts viz. offer and credence of offer. Advancing into the instance, Itua was told by his another friend Sunil about Wong, which presently making the costumes hire concern and in average clip supplying a batch more services which probably will overreach what Itua planning to make. As a consequence, Itua rapidly drop a note saying that “ he does non desire to buy the costumes ” into the post-box outside the door. Itua is advised that there is no postal regulation being applied in this scenario, because there is n’t any understanding for both party for using poster as a channel for credence or annulment. [ The contract jurisprudence – Section 4 ( 2 ) & A ; ( 3 ) ] However, by mentioning to a instance “ from Bernard ‘s book, about the office hr are accepted for proper postal regulation ” says that postal regulation are valid merely if the mail are posted with a registered mail and yet during an official office hours, if otherwise, so it is assume rescindable. The scenario had shown no consequence of whether Itua had or has n’t posted such a piece of annulment note to BLM. On the following twenty-four hours, Itua received a facsimile from BLM saying that they accept his offer of the purchase, but they still insist on non presenting it and anticipating Itua to set up the bringing on his ain. At this occasion, credence from BLM had taken topographic point, so as to state credence of offer is established. However, the arguable annulment fact is certain, which BLM did non carry through Itua originated petition to hold delivered or set up the bringing of costumes. Such disparity as defined in Section 7 ( B ) of CA 1950, if the credence is non made in the initial manner the offeror privation, he may, within a sensible clip communicate with the offeree that the offer shall be accepted in the original prescribed mode, later, if the offeree refused to continue with the understanding so it shall be null. In add-on, Section 5 ( 2 ) of CA 1950 besides says that annulment can go on before credence is completed. Consequently, Itua is steadfastly possessing the annulment right due to deficient elements of contract has been satisfied by BLM. Concluded that, Itua does non obliged to any legal duty with BLM and there is no constitution of any contractual relationship with BLM.


All the abovementioned rules had lead to finalise that Wong, BM and BLM are incapable to hold any legal contractual relationship with Itua. The instances signifies the fortunes that are likely to go on when 1 is about to travel into a contract, yet, it display the encouraging statements for annulment and held no indefensible relationships with each others. In conformity with the legal powers discussed, there might non be sufficed to render to amendss that can be claim by neither of them


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