Law Paper

Based on this case, the following issue occur between Danny and Rahul is did Danny breach the contract when he stopped his taxi and refused to send Rahul to his destination and whether Rahul can sue Danny for breach of contract. On the facts, Danny the taxi driver was supposed to send Rahul his customer to his desired destination, but Danny decided to pull over at the bus stop upon seeing traffic congestion and asked Rahul to walk there instead. In order to have an enforceable contract between both parties, there must be a valid offer, intention to create legal relation, acceptance and consideration. Offer is defined in section 2(a) Contracts Act 1950 (herein after referred to as CA1950) stated that “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”. This means that an explicit proposal to contract which, if accepted, completes the contract and binds both the person that made the offer and the person accepting the offer to the terms of the contract (Offer Definition, 2007). Offer comes into the picture when Rahul offered Danny to send him to Serdang which is 15 kilometres from Bangsar Shopping Complex (section 2(a) CA 1950). Acceptance is defined in section 2(b) CA 1950 stated that “when the person to whom proposal is made signifies his assent thereto, the proposal is said to be accepted: a proposal, when accepted, becomes a promise”. Acceptance takes place when Danny agrees to fetch Rahul to his destination and when Rahul gets into his taxi (section 2(b) CA 1950). Invitation to treat can be defined as an invitation to make an offer, negotiate or deal and hence, has no legal consequences and cannot be accepted to bring about a contract. When a person is responding to such invitation will only be able to enforce his offer if the other party accepts it. Basically, an invitation to treat is not an offer but an...