Business Law

Based on the case study given, it mainly focuses on the components which are included in Contract Act (CA) 1950. First and foremost, a contract may be defined as an agreement between two or more parties in which legal rights and obligations are created and enforced by a court. In a unilateral, or one-sided, contract, one party known as the offeror makes a promise in exchange for an act by another party, known as the offeree. Thus, a unilateral contract is not formed until the offer is accepted by the required performance, where that performance must be done by someone who is aware of the offer. According to Section 2 (a) of the CA 1950, it states 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 said to make a proposal”. According to the case Carlill V Carbolic Smoke Ball Co. (1893), the offer was made to the whole world at large and capable of being accepted by anyone. By referring to the case mentioned, Yuki Sdn. Bhd. had placed an advertisement in a national newspaper. Advertisements of goods for sale are normally interpreted as an invitation to treat, however, in this case, due to the advertisement posted by Yuki Sdn. Bhd. had offered rewards with the intention to create more sales, therefore, it may be construed as offers. On the other hand, from Section 2 (d) CA 1950, it mentions that, “…when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promise to do or to abstain from doing, something, such act or abstinence or promised is called consideration for the promise”. The key case that gave consideration its definition is Currie v Misa (1875), which states that the subjects which consideration may consist of are right, interest, profit, benefit, detriment or forbearance. While in this case, it can be referred as executed consideration, which is when...