Law Assingment

Question 2

Ali wrote to Peter on 1 April 2007 offering to sell to Peter an antique grandfather’s clock. The letter stated that Peter was to reply by 5 April 2007 if he wished to accept the offer. Peter received the letter on 3 April 2007 and immediately posted a letter accepting the offer. On the same day Ali wrote a letter to Peter revoking his offer. Peter’s letter of acceptance was received by Ali on 8 April 2007. Peter received Ali’s letter of revocation of his offer on 7 April 2007. On 10 April 2007, Ali sold the clock to Lim.

Peter wishes to sue Ali for breach of contract. Advice Peter on his chances of success.

The issue in this case is if there is a valid contact between Ali and Peter in the agreement of the antique grandfather clock?

When reffered to contracts act 1950, subsection 2 of section 4 which explains about the postal rule. Under this section it states about when the offer and acceptance is succesfully completed or communicated. Firstly offer of a contract is succesfully communicated to the acceptor when the letter reaches to the knowledge of the person intended. Meanwhile, the letter of acceptance is considered communicated when it is put in a course of transmission to the offeror. Furthermore according to another section in the contracts act 1950, which is section 5 where it states about revocation of proposal and acceptance. According to this section’s subsection 1, a proposal may be revoked at any time before the communication of its acceptance is complete which means before the acceptor puts in the letter in its course. Meanwhile under sub section 2 of the same section it states that an acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards. In short it says that a proposal or an acceptance can only revoked before it is communicated to the person and other vise cannot be revoked.

In this situation that Ali is in now, when Ali posted the...