B7LW100: Business & Company Law Assignment, DBS, Malaysia Discuss the exceptions in the communication of acceptance and This discussion should be supported

Question 1

Nazim and Saiful are colleagues who work together as IT executives at Kejhora
Technology Pte Ltd. Due to high cases of Covid-19, they were asked by the company to work from home. Nazim is also doing his part-time business by selling laptops.

On 1 December, Saiful asked Nazim to return his hard disk which Nazim borrowed beforehand. On 2 December Nazim posted to Saiful the said hard disk together with a letter stating that “I want to sell my laptop to you for RM2,000 only. If you want it you can just accept this offer in course of the past”. This letter which contained the offer was wrongly addressed and therefore Saiful did not receive it until 5 December.

As a result of this delay, the letter of acceptance which has been posted by Saiful on 6 December was not received by Nazim until 9 December, and this was two days later than Nazim would have expected to receive it.

Because of this, on 8 December Nazim called on Saiful and said “I revoke my offer to you” immediately after calling Saiful, Nazim had sold the laptop to Syafiq who lives next door to Nazim. Saiful is unsure of the validity of the contract. He has contacted you for advice as to whether the above situation constitutes a binding contract.

Required:

A. Evaluate the law about contract formation, focusing specifically on the law about offer and acceptance. This discussion should be supported by relevant statutory provisions.

B. Discuss the exceptions in the communication of acceptance. This discussion should be supported by relevant statutory provisions and case law.

C. Explain the postal rule, using statutory provisions and case law to support your answer.

D. Discuss the various modes to revoke an offer under the Contracts Act 1950 (4m). In light of the above discussion determine whether there is a valid and binding contract between Nazim and Saiful (2m).

Question 2

Saleha had lost her Persian cat Pussy. She advertised in the Netizen newspaper that whoever finds Pussy and returns her to Saleha, would give that person RM15,000 as a reward. Two days later, Pussy was found by Omar who returned her to Saleha. Omar had read the newspaper and seen the advertisement.

Omar seeks your advice as to whether he is entitled to the reward.

Required:

A. Review the law about contract formation, paying particular attention to the element of an offer. Support your answer with relevant cases.

B. Define what is an invitation to treat? Explain the principle of advertisement and its exception. Support your answer with relevant cases.

C. When the communication of the offer is complete against Omar? Support your answer with relevant statutory provisions and cases.

D. Would your answer differ if Omar knows about the reward the next day after returning Pussy to Saleha?

Question 3

Ah, Peng is a painter. Three months ago he appointed an agent, Kim to sell his (Ah Peng’s) paintings for him. The painting was important to Ah Peng as it is about his memory of his beloved daughter Mei Ling who had passed away last year due to lung cancer. Kim agreed to sell the painting at RM100,000 and will receive RM2000 as his commission. Kim managed to sell the painting for RM100,000 and he had received his commission from Ah Peng. Unfortunately, recently Ah Peng found out that Kim had accepted a ‘gift’ of RM2000 for selling his painting from a customer. Kim had not told Ah Peng about this. Ah, Peng is very upset about the profit Kim has made. Advise Ah Peng.

Required:

A. Define an agent and a principal.

B. Define secret profit and assess whether Kim has breached his duty by making a secret profit.

C. Discuss the remedies available to the principal if his agent makes a secret profit. This discussion should be supported by relevant statutory provisions and case law.

D. Distinguish between actual authority and apparent or ostensible authority, using case law to support your answer.

Answer

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