I received an offer to enter into a contract with A. However, the terms stated are not clear, complete, detailed and final. Hence, I have doubts. Are those terms indicating a good offer to start a
contract? The answer is no. Any term that is not clear, incomplete, lack details and is final is not classified as a good offer to start a contract.
I received an offer to start a contract but I just kept quiet. Does that count as an acceptance in contract law?
Generally, acceptance needs to be done by communicating and may not apply silently. If the party making the offer states that acceptance may be made in silence, the acceptance in silence is
deemed invalid. According to section 4(2)(b) of Contract Act 1950, acceptance is complete when the communication of acceptance has reached the knowledge of the offeror.
The offeror has died but you do not know the fact of the death before the acceptance is made. Is the contract or agreement that has been made considered still valid?
If the party making the offer dies, then the contract will end unless the recipient does not know the fact of death before the acceptance is made.
Let’s read the case Percetakan Kolombong Ria Sdn Bhd v Wawasan Iktisas Sdn Bhd [2016] 6 MLJ 584 regarding the issue of whether there is a valid contract between the appellant and the respondent involving the contract of printing and supplying coupons.
The appellant and the respondent had entered into negotiation for the printing and supply of parking coupons whereby the appellant had issued a letter of quotation stating that the quantity which the
respondent was to order was estimated at 1.5m sheets per month. The respondent had accepted the appellant’s quotation by a letter of award and awarded the appellant with the contract for printing of
car parking coupons subject to the appellant agreeing to the terms and conditions as set out in the letter. The appellant had accepted the respondent’s award by a letter of acceptance and signed an
agreement to print and supply and failed to order the coupons as agreed in the contract. The respondent had also failed to pay the costs for change of design of the coupons which had already been printed in huge quantities by the appellant. The appellant commenced an action for breach of contract. The High Court dismissed the claim and the appellant appealed.
In allowing the appeal, the Court of Appeal said that the letter of quotation, letter of award, and the letter of acceptance showed the intention of both parties to have a valid contract in the absence of a formal agreement. Hence, the respondent had breached the obligation as agreed in the contract.
A tells B that A wants to buy a Honda car belonging to B for a price of RM 150,000.00. Nevertheless, B told A that B agreed to sell the car for RM170,000.00. In this situation, is the offer made by A considered invalid and B considered not to have made any acceptance of the offer?
The answer is, yes. B’s action of telling A that B agreed to sell the car at a price of RM170,000.00 has canceled A’s original offer and at the same time there is no absolute acceptance by B of the original offer made by A.
I have breached the contract with A. What can A demand from me?
Section 38 of the Contract Act 1950 states the obligation for the parties in the contract to fulfill the promises made, unless the fulfillment of the promise is excused in terms of the law. If you have
breached the contract, section 74 of the Contracts Act 1950 has stated that the party who suffered a loss as a result of your breach is entitled to compensation for the loss or damage suffered.
You have entered into a contract with someone but you’re confused and need legal advice? Don’t worry! Our lawyers are available to help you! Let’s book an appointment with our professional and dedicated lawyers!
