Business Law

Q1)

The main issue is whether there is a valid contract between Malim and the financial institution of (CIBB) of the sum of RM60, 000.00 and there is any acceptance towards the contract. The first issue, there is an acceptance towards the contract due to Malim has accepted the loan with the financial institution (CIBB). Section 3 of the Contracts Act provides that the communication of acceptance is made by any act or omission of the party accepting by which he intends to communicate the acceptance or which has the effect of communicating it. Section 7(b) of the Act provides that in order to convert a proposal into a promise the acceptance must be expressed in some usual and reasonable manner unless the proposal prescribes the manner in which it is to be accepted.

Hence the acceptance is clearly been made and the terms of the loan agreement is to pay within 24 month after Malim is graduated from MMU, so the contract is valid between them. Section 2(b) of the Contract Act 1950 provides that when the person to whom the proposal is made signifies his assent thereto, the proposal is said to have been accepted. A proposal, when accepted, becomes a promise. Under Section 9 under Contract Act 1950 provides that so far as the acceptance of any promise is made in a word, the acceptance is said to be expressed. If the acceptance is made other than in words, the acceptance is said to be implied. Low Kar Yit & Ors v Mohamed Isa & Anor.

Q2)

There are several issues that show the contract between Malim and Demang. Is there an offer been made by Creative Design towards Malim? Are there any agreement had been made towards the contract? And any acceptance had been done between Malim and Demang? Is there a valid contract between Malim and Demang?

Malim was offered by Creative Design who is run by Demang, the creative whizz. Under the Section 2(a) of the Contract Act of 1950 provides that when a person signifies to another his willingness to do or to abstain from...