Case Study: Daniel & Sara

BBL 2614 Business Law

Dr. Abbas Hardani

Trimester 3, 2013/2014

Case Study: Daniel & Sara

Assignment Group member’s name

No | Name | Student ID |

1. | Fiona Chieng Jin-Hua (Leader) | 1112702358 |

2. | Lee Yee Zheng | 1112700722 |

3. | Ng Kai Ling | 1112700962 |

4. | Daniel Chong Kwang Chian | 1112700284 |

5. | Yang Wei Wen | 1121115505 |

6. | Vatchala A/P Subramanyam | 1112701707 |

Introduction of Contract law in Malaysia

The context of law may be defined as a legally binding agreement between two parties or, in the words of Sir Frederick Pollock, a promise or set of promises which the law will enforce. The agreement will create rights and obligations that may be enforced in the court. Contracts are essential to commercial life and generally in Malaysia, the law of contract is regulated by the Contract Act 1950 and when the laws of contract are not sufficient or not all by the contract act can be apply then we will enforce in English law.

A void contract is said as a not valid contract whereas the voidable contract is a valid contract. There are mainly 5 elements or pre-requisites when we defined a valid contract which is offer, acceptance, intention to create a legal relations, consideration and capacity.

For the offer, it is defined under Section 2(a) of the Contract Act where 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 such act or abstinence, he is said to make a proposal. The offeror is mean by promisor or proposer where the offeree is referring to promise or acceptor. A contract is said void if it occurs a counter offer from the offeree. An invitation to treat is not an offer so it must be distinguished who is the offeror when the transaction occurs.

Next, acceptance is defined in Section 2(b) of the Contract Act 1950, when a person to whom the proposal is made signifies his assent thereto, the...