Business

Contact is an agreement enforceable by the law between 2 or more parties to do or to abstain from doing some act.

-To be a valid contract,it should include 8 essential elements which are offer, acceptance, intention to create legal relations, consideration, certainty, capacity, consent, legality.

•There are 3 types of contract which are

-void -voidable -unenforceable

•Offer --an offer is a definite promise to be bound on certain specific terms. -section 2(a) of CA 1950

-(Carlill v Carbolic Smoke Ball Co) Carbolic advertised its new product smoke ball can cure influenza.if it did not,buyer would received £100.Mrs Carlill bought it but still caught influenza.She sued the company and she won.The court held that it was an unilateral offer.

-(Affin Credit Malaysia Snd Bhd v Yap Yuen Fui)

•Invitation to treat(ITT) --an ITT is not an offer but a preliminary communication, is an invitation to others to make offers.

e.g: display of goods-(fisher v bell) and (Pharmaceutical society of Great Britain v Boots cash chemist) in both of the case,the court held that it was an ITT but not an offer.

Yes there was offer in this case

•Acceptance --a willingness to accept an offer, the contract is valid if the offeree understand and accept the terms and condition offered by the offeror. when an offer is accepted,it becomes a promise. -sec 2(b)CA 1950

-e.g: acceptance occurs when a bank pays a check write by a customer who has a checking account with the bank.

-(Brogden v Metropolitan Railway Co)It was contract because sending draft was an offer and acceptance was act of returning and continuing to trade.

-For no acceptance,(Lau Brothers & Co v China Pacific Navigation Co Ltd) case.the court held no agreement was formed. Therefore,the defendants were justified in withdrawing the offer.

•Consideration --a promise in exchange for a promise, must have some value existed, an act, need not be adequate, ”something for something” or from both parties,someone must get...