CONTRACT AND ESTIMATION

BFC31602
NAME

MATRIC NUMBER

MOHD.KHAIRIL AMRI BIN KAMARUZAMAN

AF120162

MUHAMMAD FIRDAUS BIN MD YASIN

AF120036

MUHAMAD AIMAN BIN ABD RASHID

AF120101

ASMAHANI BINTI BARJOK

AF120086

NOORATIQAH BINTI MOHD ZIN

AF120119

NORFATIHIN BINTI NOORLISAM

AF120145

QUESTION 12:
Azlan and Yusuf agreed to sell and buy a piece of
land. The land was identified, its area was noted,
the price was settled, and the parties also agreed
on the mode of payment. This agreement was
later written down and one of the clauses stated
that the agreement was a provisional one subject
to the approval of the lawyers of the respective
parties. When the lawyer of Azlan completed the
documents of sale after approval and sent the
same to Yusuf, the latter refused to sign the
document relating to sale. Is there an enforceable
contract between the parties?

INTRODUCTION:
The issues that are to be discussed based on the
question are as follows;
Is communication between Azlan and Yusuf is
completed?
Payment has not been made.
Is the agreement can be enforceable by law?

FIRST ISSUE:
Is communication between Azlan and Yusuf is
completed?

Related laws:
Section 4 - Communication, when complete
Section 4(1) - The communication of proposal is complete when it
comes to the knowledge of the person whom it is made.
Section 4(2) The communication of an acceptance is complete
Section 4(2)(a) As against proposer, when it is put in a course of
transmission to him, so as to be out of the power of the acceptor.
Section 4(2)(b) as against the proposer, when it comes to the
knowledge of the proposer.
Section 5(2) An acceptance may be revoked at any time before
the communication of the acceptance is complete as against the
acceptor, but not afterwards.
Section 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.

Application of laws:
Both parties agreed to sell and buy the land at
the earlier stage, but their communication is
considered incomplete because Yusuf did not
sign the selling and buying document.
In this case, it is said that Yusuf reject the
offer, thus Azlans party did not receive any
kind of agreement from Yusuf.

Conclusion:
Based on section 2(b), Azlans proposal in
writing form is not accepted by Yusuf. Thus,
communication between Azlan and Yusuf is
completed because it came to Yusufs
knowledge. But, the contract is enforceable as
Yusuf did not want to sign it.

SECOND ISSUE:
Payment has not been made.

Related laws:
Section 7 Acceptance must be absolute. In order to
convert a proposal into a promise the acceptance mustSection 7(a) - be absolute and unqualified.
Section 7(b) be expressed in some usual and reasonable
manner, unless the proposal prescribes the manner in
which it is to be accepted. If the proposal prescribes a
manner in which it is to be accepted, and the acceptance is
not made in that manner, the proposer may, within a
reasonable time after the acceptance is communicated to
him, insist that his proposal shall be accepted in the
prescribed manner, and not otherwise; but, if he fails to do
so, he accepts the acceptance.

Application of laws:
Yusuf has not pay for the land.
This means that he can cancel the contract
without losing both parties.

Conclusion:
Even though contract had been performed
earlier by oral, but it was cancelled by act.
Where Yusuf choose to not sign the document
of selling and buying and he also did not make
any payment.

THIRD ISSUE:
Is the agreement can be enforceable by law?

Related laws:
Section 2(i) an agreement which is
enforceable by law at the option of one or
more of the parties thereto, but not at the
option of the other or others, is a voidable
contract.

Application of laws:
Yusuf action is enforceable if he did not want
to pursue the contract as he has not sign the
contract.
The contract is enforceable by law if Yusuf
fulfill all the above elements.

GENERAL CONCLUSION:
What is communication?
Explain requirement of written contract.
What is contract?