Busniess Law

1. 1
Assignment 1
Task 1.1
Offer:
Meaning of an offer, Section 2(a) provides, when a person signify his willingness to do or
abstain from doing anything. It is something which is capable of being converted into an
agreement by its acceptance. Sec.5(1), the offer can be cancel any time before acceptance and
in Sec.6(a), before cancel the offer give notice to the offeree. A offer can be made either
expressly or impliedly under Sec.9. Under Sec.4(1) offer must be communicated and effective
when it comes to the knowledge of the offeree. Example of case, Carlill v Carbolic Smoke Ball
Co (1893), there is did not require notification of acceptance of the offer and contract void.
Acceptance:
Definition of acceptance, under Sec.2(b), when the person to whom the proposal is made
signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted,
becomes a promise. Under Sec.7(a), acceptance must be absolute and unqualified by without
any condition or qualification. Sec.4(2)(a) provides that communication of acceptance is
complete as against the proposer when it is put in a course of transmission to him. Postal Rule,
example of case Adams v Lindsell (1818), once the letter goes to the post box, there is valid
contract.

2. 2
An invitation to treat:
This is where a person holds himself out as ready to receive offers, the following are examples
of invitations to treat. First, the display of goods with a price ticket attached in a shop window
or on a supermarket shelf. This is not an offer to sell but an invitation for customers to make
an offer to buy, example case- Fisher v bell (1960)- the court held that the display of a flick
knife was an invitation to treat not an offer for sale. Second, advertisements; many business
make use of the press, TV, commercial radio and in more recent times, the Internet, to sell their
products direct to the public. Even offer word is used, the advertisement is still an invitation to
treat. Example case- Partridge v Crittenden (1968)- advertisement placed in the classified
advertisement page of a periodical. Third, auction; at an auction sale the call for bids by an
auctioneer is an invitation to treat. The bids are offers. The auctioneer selects the highest bid
and acceptance is completed by the fall of the hammer, example case- Payne v Cave (1789)-
court held that the auctioneer’s request for bids is an invitation to treat. Fourth, tenders; large
undertakings, such as public authorities, often place contracts by inviting interested firms to
tender ‘offer’ for the business. An invitation to tender can give rise to a binding obligation on
the part the inviter to consider tenders submitted in accordance with the conditions of the
tender. Example case- Spencer v Harding (1870)- a circular was sent out whereby stock was
offered sale by tender. The court held that the circular was simply a proclamation of intention
and was thus an invitation to treat.
Cross-offer:
Sometimes two parties make similar offers to each other without knowing the offer made by
the other. These are called cross offers. For an example, Ali by a letter offered to sell his car to
John for RM 10,000. Without knowing about Ali’s offer, John also by letter offered to buy
Ali’s same car for RM 10,000. Both the offers cross each other so, the offer do not constitute
acceptance. Example of cross-offer case; Tinn v Hoffmann (1873), the effect this cross-offer
is contract void.

3. 3
Counter-offer:
Under Sec.3(1), a counter-offer is an offer made by an offeree to his offeror relating to the same
matter as the original offer and proposing a substituted bargain differing from that proposed by
the original offer. Sec.59, a reply to an offer which purports to accept it but is conditional on
the offeror’s assent to terms additional or difference from those offered is not an acceptance
but a counter-offer. Case of counter-offer is Hyde v Wrench (1840). In this case, Wrench
offered to sell Hyde a farm for €1,000. Hyde made a counter-offer to purchase at €950. It was
no contract existed between them. In the case Stevenson v McLean (1880), offeree simply
asking for more information about the offer. A request for more information will not reject the
offer is valid contract.
All the essential elements in making valid contract
1) Offer/ Acceptance: An agreement is formed when one party accepts the offer of
another.
2) Consideration: The parties must show that their agreement is part of a bargain; each
side must promise to give or do something for the other.
3) Intention: The law will not concern itself with purely domestic or social arrangements.
The parties must have intended their agreement to have legal consequences.
4) Certainty: In some cases, certain formalities must be observed.
5) Capacity: The parties must be legally capable of entering into a contract.
6) Free consent: The agreement must have been entered into freely and involve a ‘meeting
of minds’.
7) Legality: The purpose of the agreement must not be illegal or contrary to public policy.

4. 4
Task 1.2
Difference between offer and invitation to treat.
An offer is a definite promise to be bound provided that certain terms are to be accepted. Under
Sec.2(a) defines a proposal as when a person signifies to another his willingness to do or to
abstain from doing anything, with a view to obtaining the assent of that other to the act or
abstinence, he is said to make a proposal. A situation when Jack made offer to sell one of his
house to Tan, if Tan acceptance the offer the contract is valid.
An invitation to treat is a statement which is intended to be binding at law, when a client invites
contractors to make him an offer. For example, when the client advertises a job on internet or
newspaper. A situation when John give advertisement in television to sell his car, if anyone
goes to buy the car it is an invitation to treat. The person to buy the car from John is an offer,
John acceptance the offer it is a valid contract.
The impact of different types of contract
1) Unilateral contract- means that the offeror is making a promise in return for an act.
2) Bilateral contract- Occurs when the offerors is making a promise in return for the
promise of the offeree.
3) Specialty contract- also a bilateral contract, but both parties are keeping a written copy
of the agreement, sign by both parties as well.
4) Simple contract- usually it is in written form, but can also be verbal, depending on the
parties.
5) Standard contract- well documented by each party’s representatives, sealed and signed.
6) Verbal contract- well documented and can be done even over the phone.
7) Express contract- terms and conditions are clearly expressed and responsibilities are
emphasized. It can be signed by individuals, businesses, organizations.
8) Implied contract- responsibilities arise from an agreement which was not expressed in
writing or words.

5. 5
Task 2
Yes, Max is a valid owner of the laptop. Peter called on Max and offered to sell his Samsung
laptop, under Section 9, a offer can be made either expressly or implied.Under Section 4(1),
the offer must be communicated. On the 3rd of November Max accepted the offered by Peter,
wrote and posted a letter to Peter. The letter was not addressed properly by Max, Peter received
the letter of acceptance by Max on the 8th of November instead of on the 5th November. On the
evening of 6th of November, Peter telephoned Max and said that ‘ I revoke my offer to you’.
Under Section 5(1), offeror may withdraw his offer at any time before acceptance. Under
Section 6(a), before cancel the offer give notice to the offeree. Why I am telling that it was a
valid contract, under Section 4(2)(a), once the letter goes to the post box, there is valid contract
by Postal Rule for example of case, Adams v Lindsell (1818). Conclusion, that the contract is
a valid so the laptop belongs to Max.

6. 6
Task 3
Mr Tan is able to sue the telecommunication company for negligence by the law of tort. The
road was one of the many people passed every day. The workers after finished their work for
the day, they put a long wooden board across the hole and put a red flag nearby to warn the
pedestrians. It was for normal person but for Mr Tan, he was blind. Mr Tan tripped into the
hole and suffered serious injuries. It is because of the workers careless and the company were
take care of this, the workers are working under the company. The tort of negligence is
concerned with certain kinds of careless conduct which cause damage or loss to others. The
foundations of the modern law of negligence were laid down in one of the best-known case in
the English law Donoghue v Stevenson (1932). First, duty of care which could be applied to
most situations, His statement of general principle, which was to become known as the
neighbour principle. You must take reasonable care to avoid acts or omissions which you can
reasonably foresee would be likely to injure your neighbour. Who, then in law, is my
neighbour? The answer seems to be the persons who are so closely and directly affected by my
act that I ought reasonably to have them in contemplation as being so affected when I am
directing my mind to the acts or omissions which are called in question. Mr Tan is the
neighbour of them by using the road. Second, breach of duty after establishing the existence of
a duty of care, the claimant must show that this duty has been broken by the defendant. The
test for deciding whether there has been a breach of duty is whether the defendant has failed to
do what a reasonable person would have done or has done what a reasonable person would not
have done. Whether the defendant’s conduct amounts to a breach of duty depends on all the
circumstances of the case. The court will consider a range of factor including: the likelihood
that damage or injury will be incurred; the seriousness of any damage or injury; the cost and
ease of taking precautions; the social need for the activity. The company breach of duty by not
properly close the hole. Last, causation and damage the claimant must show he has suffered
some damage that it has been caused by the defendant’s breach of duty and is not too remote a
consequence of it. The kinds of damage which will give rise to an action in negligence are:
death, personal injury, and nervous shock, damage to property and, in limited circumstances,
financial loss. Defendant too must accept the plaintiff as he is the egg-skull rule case Smith v
Leech-Brain & Co by injury causing lip cancer and this situation that Mr Tan was a blind. The
conclusion that this is the workers mistake did not closed the hole properly and Mr Tan sue the
telecommunication company.

7. 7
Task 4
One of the Molly customer came to café earlier fell due to the slippery floor in her café. The
customer can sue Molly for tort of negligence. The elements of tort of negligence in this
situation there are three elements: duty of care, breach of duty and, causation and damage. Duty
of care, the neighbour of the café is the customer was fell due to the slippery floor. There is no
duty to take care, a negligent act has no legal consequence and a duty of care exist in normal
circumstances where if a person does not take the usual precautions, another person or his
property may be injured or damaged. To test the existence of duty of care case- Donoghue v
Stevenson (1932) the neighbourhood principle. Breach of the duty, plaintiff must show not
only that there is a duty to take care but that the duty have been breached. The defendant does
something below the minimum standard of care required. Causation and damage, the customer
can claim injury or damages from Molly if the neighbour had injury. In the case Bolton v Stone
(1951), their Lordships struck a balance between the magnitude of the risk of injury to passers-
by and the precautions required to prevent injury.

8. 8
Reference:
 Keenan,M.,Riches,S.,Allen,V.(2011).Forming business contracts,pp.213-216.
 Contract Case List Notes | Oxbridge Notes the United Kingdom. 2016. Contract Case
List Notes | Oxbridge Notes the United Kingdom. [ONLINE] Available
at:https://www.oxbridgenotes.co.uk/revision_notes/gdl-law-gdl-contract-
law/samples/contract-case-list. [Accessed 24 February 2016].
 Keenan,M.,Riches,S.,Allen,V.(2011).Business and the law of tort,pp.348-353.
 Eggshell skull - Wikipedia, the free encyclopedia. 2016. Eggshell skull - Wikipedia, the
free encyclopedia. [ONLINE] Available
at: https://en.wikipedia.org/wiki/Eggshell_skull. [Accessed 25 February 2016].