LAW416 BUSINESS LAW
TUTORIAL WEEK 4
Topic: Law of Contract
[Offer, acceptance, consideration]
Name
: PUTERI AN NUR INSYIRAH BINTI ASMAWI
Matric No
: 2021115003
Group
: TBA2441A
QUESTION ONE
Wassem, a convenient store in Dungun was charged for illegal offering of medication to treat
influenza and cough by the authorities. Wassem manager, Puan Alia alleged that Wassem only
sell the medication when there is a pharmacist in charge. The pharmacist visits Wassem thrice a
week, Monday, Wednesday and Friday. According to Puan Alia, Wassem regular customers are
aware of this fact and come to seek medication when the pharmacist is available.
The authorities refused to accept Puan Alia’s explanation and issued a fine of RM20,000. Puan
Alia seek your assistance to settle the matter.
Advise Puan Alia by referring to relevant principles of law of contract.
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LAW416 BUSINESS LAW
ANSWER QUESTION 1:
The issues in the situation given is Wassem, a convenient store in Dungun was charged
for illegal offering of medication to treat influenza and cough by the authorities.
The relevant principles in law are according to Contract Act 1950. Based on Section 2 (a)
of the Contract Act 1950 proposal is made when one 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
abstinence. Invitation to Treat is not offer but merely inviting a person to make an offer first. An
example displays of goods with price tags in supermarket. In section 2 (b), when the person to
whom the proposal is made signifies his assent thereto, the proposal is when to be accepted.
Based on the case from Pharmaceutical Society of Great Britian v Boots Cash Chemist
limited [1953], Boots Cash Chemist Ltd were charged under Pharmacy and Poison Act 1933 UK
which provides that it was unlawful to sell certain poison unless such sales were supervised by
registered pharmacist. The plaintiff claimed that the sale was unlawful since no pharmacist was
seen. The court ruled that the goods displayed was only an Invitation to Treat. A proposal to buy
was made when the customer placed the article in the basket. Acceptance of this sale is only
made when the cashier receives the money from the customer. That being the principle, since
there was a registered pharmacist at the cashier, the shop owner was not liable.
Based on the fact given, the plaintiff claimed that the sale was unlawful since no
pharmacist was seen consider as ITT since a proposal to buy was made when the customer
placed the article in the basket. Applying section 2(a) was made by the authorities but, Puan Alia
refused to accept the offer which shows that there is no acceptance. Hence, there is a registered
pharmacist that visits thrice a week
To conclude, the authorities cannot charge for illegal offering of medication to treat
influenza and cough.
(10 marks)
LAW416 BUSINESS LAW
WAN MARDIANA WAN MUSA
LAW416 BUSINESS LAW
QUESTION TWO
Ahmad asked a quotation from Diman Print Express for a wedding card. Diman Print Express
presented several options to Ahmad. Two days later, Ahmad sent an email to Diman Print Express
to order Package A and asked Diman Print Express to complete the printing in five days. Diman
Print Express did not immediately reply. After 4 days, Diman Print Express replied Ahmad’s email
stating that they could not proceed with the order.
Ahmad wishes to sue Diman Print Express for breach of contract. Advise Ahmad whether he may
do so with reference to relevant principles of law of contract.
LAW416 BUSINESS LAW
WAN MARDIANA WAN MUSA
LAW416 BUSINESS LAW
ANSWER QUESTION 2:
The issues in the situation given is whether Ahmad can sue Diman Print Express for
breach of contract. The relevant principles in law are according to Contract Act 1950.
Based on Section 2 (a) of the Contract Act 1950 proposal is made when one 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 abstinence. Invitation to Treat is not offer but merely inviting a person to
make an offer first. An example, a price catalog or list. In section 2 (b), when the person to whom
the proposal is made signifies his assent thereto, the proposal is when to be accepted.
Based on the cased from Lau Bros v China Pacific Navigation Ltd [1965], the parties were
negotiating through several letters and telegrams on the delivery of logs. While still in the midst
of negotiation, the defendant withdrew. The plaintiff was unsatisfied and sued the defendant. It
was held that there was no contract to begin with, only negotiation. If the promise introduces a
new term, he is making a counter-offer. The effect of a counter-offer is, it destroys the original
offer.
Based on the fact given, the parties were negotiating through several letters and telegrams
on the delivery of logs. If the promise introduces a new term, he is making a counter-offer. The
effect of a counter-offer is, it destroys the original offer. Applying section 2(a) the offer was made
by, Ahmad and Diman Print Express not accept the offer because they didn’t reply immediately
which shows there is no acceptance. Hence, there is no contract between Ahmad and Diman
Print Express, therefore Diman Print Express is not liable to sell the wedding card.
To conclude, Ahmad can not sue Diman Print Express for breach of contract.
(10 marks)
LAW416 BUSINESS LAW
WAN MARDIANA WAN MUSA