Presented By:

Chye Weng Hong

Neoh Kit Yan
Suhaida Nur
Ho Zhi Jean
 Question 1
Identification the issue
To determine if there are a legally
binding contract between
Andrew, William, Catherine and
Sarah
LAW OF CONTRACT
What is Contract
Parties to a Contract
Elements of Contract
 What is Contract?
Is a written or spoken agreement
between two or more parties,
intended to be enforceable by law.

In Malaysia, all contracts made are

governed by Contracts Act 1950.
 What is Contract? - conts
Section 2(h) of the Contracts Act 1950 provides that

Contract is an agreement enforceable by law

All agreements are not contracts

although all contracts are
agreements.
What is Contract? - conts
ELEMENTS

There must be an The agreement must

agreement be enforceable by law

There must be an offer and a Examples of contracts not

complete acceptance; enforceable by law; contract
A offered and B accepted the for killing someone, contract
other. for theft and others.
PARTIES TO A CONTRACT
Has the power either
Makes an offer to accept or to reject
to the offeree the offer

Offeror Offeree
ELEMENTS OF A VALID CONTRACT

Offer
Acceptance
Consideration
 OFFER
When one 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.

[Section 2(a) of the Contracts

Act]
 OFFER - conts
Under the Contracts Act 1950, a proposal
or offer is something which is capable of
being converted into an agreement by its
acceptance.
 OFFER - conts
It is very important to
differentiate an OFFER
from a mere
What is INVITATION INVITATION TO TREAT
TO TREAT?
 INVITATION TO TREAT
Invitation to treat is not an offer. It is just
an invitation to make an offer.
It is a sort of preliminary negotiation
before any contract is entered into
Examples
Goods displayed in the shop with price
tag
Advertisement in the newspaper
Partridge v Crittenden [1968] 2 All ER 421
 ACCEPTANCE
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.

[Section 2(b) of the Contract Act]

 REVOCATION
A proposal is revoked by the
communication of notice of revocation
by the proposer to the party

[Section 6(a) of Contract Act 1950]

 CONSIDERATION
AGREEMENT WITHOUT CONSIDERATION, THE
AGREEMENT IS VOID
When, at the desire of the promisor, the promise or
any other person has done or abstained from doing,
or does or abstains from doing, or promises to do or
to abstain from doing, something, such act or
abstinence or promise is called a consideration for
the promise.
[Section 2(d) of Contract Act 1950]

Guthrie Waugh Bud v Malaippan Muthucumaru

APPLICATION AND CONCLUSION
Andrew had place an advertisement in the
Moon newspaper to sell his for RM 50,000
William had make an offer to Andrew that he is
willing to pay RM 45, 000 for the car and
Andrew said that he would think about it and
revert to him next day
Catherine had make an offer to Andrew where
she offer Andrew RM50,000 for the car
Sarah had make an offer to Andrew that she
could only pay the car for RM 35,000. Finally
Andrew had make an acceptance to accept
the offer that Sarah make
Andrew had make an revocation of offer
through the telephoned to William and
Catherine that he had sold to the car to
someone
As a conclusion ,Contract properly formed
between Andrew and William and also
Catherine .