Diploma in Logistic Management
Group Assignment
DILM 2103
BUSINESS LAW
PREPARED BY:
Rashyeqa Binti Mohd Usin
(la6-095-21)
Nikmahtuzzuhra binti Muhammad Taha (la6-096-21)
Balqis Nurhusna binti Mohd Asri
(la6-097-21)
Nur Nasrien Binti Sepormalok khan (la6-101-21)
LECTURER:
MISS ANIS SHAFIQAH BINTI MOHD SAIDUN
DATE OF SUBMISSION:
7 MARCH 2023
TABLE OF CONTENT
No
Topic
Pages
1
Essential element of valid contract by relating to the
scenario
3-7
2
Different types of contract and explain their impact
any special rules need to be considered
7 - 15
3
Terms of contract
15 - 19
4
The element of contract in the scenario of Alan and
Cath
19 - 21
5
References
21
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CLO1 : Explain essential element of valid contract by relating to the scenario.
1. Offer
An offer must be definite and clear, without which a binding contract isn't created. A
contract of such kind is considered to be void. To state as provided in the respective
legal provision, “Agreements, the meaning of which is not certain or capable of being
certain are void.”
It is important to distinguish between an offer and an invitation to treat. A valid contract
requires an offer to be accepted, whereas an invitation to treat is not an essential element
of a contract. Whilst an offer can be accepted, an invitation to treat is merely an invitation
or willingness to negotiate that one party makes to the other. This is not an offer as it does
not show a willingness to be bound on specific terms once accepted. An invitation to treat
gives the party who issues the invitation control over whether the contract should be made
or when it should be made. An invitation to treat only constitutes an offer when the
wordings are clear, definite and explicit, which leaves nothing open for further negotiation.
Louisa Elizabeth Carlill v Carbolic Smoke Ball Company [1893]
The defendant is a manufacturer of “smoke balls” which were termed to be a cure for
the flu during the flu pandemic. The defendant advertised in several newspapers that
he will provide a reward of £ 100 to any person who will use smoke balls three times
daily for two weeks and contracted flu. Mrs. Carlill saw the advertisement and bought
the ball. After using it three times daily for months she contracted the flu. She claimed
£ 100 from the defendant which he refused to pay on the ground that they had no
contract with the plaintiff.
2. Acceptance
The essential of valid acceptance are explained in the Indian contract act 1872. The
Indian Contract Act 1872 defines acceptance in Section 2 (b) as “When the person to
whom the proposal has been made signifies his assent thereto, the offer is said to be
accepted. Thus the proposal when accepted becomes a promise.” Mario Iveljic, a
P a g e 3 | 21
partner at Mag Mile Law, LLC explains that there is not one way of validly accepting a
contract - generally, an offeree can accept an offer in any reasonable medium as long
as the country or state does not require any specific form. Here are some of the
requirements for acceptance:
 Unconditional acceptance: The parties must agree to the terms as they
are. If one party suggests alterations, they are no longer accepting the
original offer. Such a contract is now in the counteroffer territory.
 The intended offeree must accept it: For an acceptance to be binding, the
intended target must agree to it. For instance, someone else cannot accept
an offer on your behalf. The only exception is when you give your authority
to an agent or representative to act on your behalf.
 Must be communicated: The acceptance has to be expressed either in
writing or verbally to the person offering. The form of mode communication
should be within the agreed-upon channels.
Entores Ltd v Miles Far East Corporation [1955]
The complainants, Entores, were a company that was based in London. They had sent
an offer to purchase 100 tons of copper cathodes to the defendants, Miles Far East
Corp. Their company was based in Amsterdam and this offer was communicated by
Telex, a form of instantaneous communication. The Dutch company sent an
acceptance of this offer by Telex to the complainants. When the contract was not
fulfilled, the complainants tried to sue the defendants for damages.
3. Consideration
Consideration is a promise, performance, or forbearance bargained by a promisor in
exchange for their promise. Consideration is the main element of a contract. Without
consideration by both parties, a contract cannot be enforceable. As Nelson Johnson, an
attorney at Griffith, Lowry & Meherg, LLC puts it: if there is no consideration, there is no
contract. Without consideration, the contract is both unenforceable at equity and in law.
P a g e 4 | 21
For instance, if a person used the money to purchase an apple, the apple is the
merchant’s consideration, and the money is the person’s consideration.
Foakes v Beer [1884]

Beer loaned Foakes a sum of £2090.

Foakes did not repay the amount, and Beer brought an action against Foakes.

They then entered into a repayment scheme where Beer agreed not to sue
Foakes “in consideration” of an initial amount of £500 and then payments of
£250 thereafter.

At the end of the agreement, the principal was repaid however interest was not
so Beer sued Foakes. Foakes argued this was a breach of the agreement
4. Intention
Intention can be defined as an intention to enter a legally binding agreement or
contract. Intention to create legal relations is one of the necessary elements in formation
of a contract. It is because, intention to create legal relations consists of readiness of a
party to accept the legal sequences of having entered into an agreement. If the agreement
is a stepping stone for a future contract or is an agreement to agree, then the agreement
might be void for a lack of intention to create legal relations. Moreover, a domestic
contract is presumed not to be legally binding in common law jurisdictions.
Husband and wife (Balfour v Balfour)
The defendant who worked in Ceylon, came to England with his wife on holiday.
He later returned to Ceylon alone, the wife remaining in England for health reasons.
The defendant promised to pay the plaintiff £30 per month as maintenance, but failed
to keep up the payments when the marriage broke up. The wife sued. It was held that
the wife could not succeed because: (1) she had provided no consideration for the
promise to pay £30; and (2) agreements between husbands and wives are not
contracts because the parties do not intend them to be legally binding.
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5. Capacity
Capacity to contract means a party has the legal ability to enter into a contract.
Capacity also means a person has to be competent as defined by law. Someone's
capacity is determined by whether or not they have reached the age of majority and if
they are mentally capable of understanding the applicable contract terms. The law
exempts a group of people from getting into contracts to protect the vulnerable which is

Children who are too young to understand (minors)

People suffering from mental illnesses

Someone under the influence of drugs

People who can’t understand the language of the contract.
Hamilton v Lethbridge (1912)

L (a minor) entered into a five year contract, under which he was to serve as an
articled clerk for H, a practising lawyer.

The contract included a restraint of trade clause that prevented L from practising
law within 50 kilometres of Toowoomba

L argued that he was not bound by the contract (including the restraint of trade
clause) because he was a minor at the time he entered the agreement
6. Certainty
Certainty in law of contract is a principle which holds that parties to a contract should
ensure that a contract is certain and if not, it may be unenforceable. Certainty in law of
contract is a principle in national and international law which holds that parties to a
contract should always look to ensure that a contract is certain. If a contract is incomplete
or uncertain, then it may be found to be unenforceable. An agreement doesn't create a
binding contract.
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Certainty can be defined as being free from any doubt, a state of being absolutely
certain, as in the certainty of death. In terms of contract law, a contract is certain when
the provisions are properly described and explained and clearly set forth.
Jones v Lock (1865)
 Jones had a son with first wife and infant son with second wife.
 Jones gave his infant son a cheque for £900.
Cheque was payment for
discharge of mortgage.

Jones died before formally amending the will; the rest of the estate was to go to
the children of Jones’ first marriage.

The infant’s mother sought that £900 out of estate as it was transferred to his
son. The cheque had not been endorsed (signed on back).

Attempted to argue declaration of trust of cheque in favour of infant son.
CLO2 : Different types of contract and explain their impact any special
rules need to be considered.
1. Fixed Price Contract
A fixed-price contract is an agreement between the consumer and business or private
seller to pay a specific amount of money for determined goods or services. In this type of
contract, the cost of the goods or services remains the same, regardless of how long it
takes to complete or provide them.
You need a fixed-price contract when you can ascertain the costs of the transaction
with relative confidence. They may provide many benefits, such as:

Encompass fewer products or services

Have limited performance duties and uncertainties

Are easier to administer and control

Allow for easier budgeting

Make pre-plan inventory easier
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For example, you may agree to pay a certain amount of money to a person who cleans
your house, no matter how much time they require to complete the job.
Parts of a fixed-price contract
These common core elements may be essential to an enforceable fixed-price contract:

Identification and scope of goods or services
A fixed-price contract is meant for a limited set of goods or a specific service. It should
define what goods will be purchased or what services are to be performed. The specific
goods/services and the scope of the project should be outlined in detail.

Price and payment
The agreement should state the specific price for the transaction. This should include
not only the amount that will be paid, but also when it will be paid and how. This may
include direct deposit information, requirements for a check, or details about a company’s
invoicing procedures.

Terms of the agreement
The contract should state how long the agreement is to last. For most fixed-price
contracts, this is the date by which services must be completed or goods rendered. It will
usually terminate the rest of the contract automatically once the conditions are fully met.
2. Time and materials contract
A time and materials contract is a legally binding agreement that outlines how an
employer will pay a contractor for the time and materials they spent on a project. A time
and materials contract is commonly used in construction project management, though it’s
also used in product development and other types of projects.
P a g e 8 | 21
There are some important differences between fixed price and time and materials
contracts. Fixed price contracts, in which the final price is determined before work begins,
are more common than time and materials contracts. Fixed price contracts are best suited
to projects that are well understood by both the client and the contractor and, therefore,
the time needed and costs required are predictable.
In fixed price contracts, if job specifications change after the work begins, client and
contractor must negotiate an amendment to their agreement. But a time and materials
contract usually specifies only the purpose of the job along with hourly labor rates and
materials costs. They’re suited to situations with less predictability because if the job
specifications change no renegotiation is required; it just costs more in time and materials.
For example, some hairdressers establish the exact cost of their services after they've
completed them because the amount of product and time they need for a person's hair
can be difficult to predetermine.
Parts of a Time and Materials Contract
The goal of any contract is to meet the project requirements, cover the contractor’s costs
and overhead and deliver a profit to the contractor. To that end, these items are usually
included in a time and materials contract:

Labor rates: This should include the hourly wages for not only the laborers and
subcontractors, but also administrators who manage the project and billing.

Maximum labor hours: To guard against runaway costs and protect the client, a
maximum number of labor hours can be specified. Any excess hours must be
absorbed by the contractor.

Materials markup: The client will be billed for the actual cost of materials (including
freight), plus a specified markup, usually between 15% and 35%.
Time and materials contracts are best when the scope of the job or its duration cannot
be determined before work begins, as is sometimes the case in construction projects.
When renovating an old building, for example, removing walls may uncover rot or other
damage not visible before the job started. Another situation ripe for a time and materials
P a g e 9 | 21
contract is when the materials prices are likely to change. Perhaps lumber costs or gas
prices are predicted to rise significantly over the duration of the job.
3. Implied contract
An implied contract is an unspoken agreement that the parties don't typically write
down or verbally agree to. It usually depends on the actions of each involved party. The
principles underlying an implied contract are that no person should receive unjust benefits
at the expense of another person, and a written or verbal agreement is not needed to get
fair play. For example, the implied warranty is a type of implied contract. When a product
is purchased, it must be capable of fulfilling its function. A new refrigerator must keep food
cool, or either the manufacturer or the seller has failed to meet the terms of an implied
contract.
An implied contract is sometimes difficult to enforce because proving the justice of the
claim is a matter for argument, not a simple matter of producing a signed document. In
addition, some jurisdictions place limits on implied contracts. For example, a contract for
a real estate transaction must be backed up by a written contract in some courts.
4. Unit price contract
A unit price contract is an agreement between a contractor and consumer to pay for a
project by units of the job. The contractor breaks the project up into units before beginning
to work on it. For example, a pool installer might be unable to predetermine the amount
of dirt they might remove from a location. In this scenario, they can use a unit price
contract where the consumer agrees to pay a certain amount for each load of dirt the
installer removes.
The commonly factored in the unit price contract:

Labor Costs

Material costs

Overhead costs

Profit
P a g e 10 | 21

Taxes

Permit and inspection costs
5. Cost-plus contract
A cost-plus contract occurs when a consumer agrees to reimburse a business for
expenses it incurs when completing some work, adding a certain amount to ensure profit
for the business. This contract is common where expenses relating to the completed work
can vary. Often, the profit amount is a percentage that the parties add to the final price.
You might encounter this contract working with a tradesperson. For example, a carpenter
might use it to ensure they receive profit, even if the expenses of materials vary.
Cost-plus contracts are generally used if the party drawing up the contract has
budgetary restrictions or if the overall scope of the work can't be properly estimated in
advance.
In construction, cost-plus contracts are drawn up so contractors can be reimbursed for
almost every expense actually incurred on a project. The cost-plus contract pays the
builder for direct costs and indirect or overhead costs. All expenses must be supported
by documentation of the contractor’s spending in the form of invoices or receipts. The
contract moreover allows the contractor to collect a certain amount above the reimbursed
amount, so they may be able to make a profit—hence, the "plus" in cost-plus contracts.
Some contracts may limit the amount of reimbursement, so not every expense would
be covered. This is especially true if the contractor makes an error during the course of
the project or is found to be negligent in any part of the construction.
Cost-plus contracts are also used in research and development (R&D) activities,
where a larger company may outsource R&D activities to a smaller firm, such as large
pharmaceutical company contracting to the lab of a small biotech company. The U.S.
government also uses cost-plus contracts with military defense companies that develop
new technologies for national defense.
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Types of Cost-Plus Contracts
Cost-plus contracts can be separated into four categories. They each allow for the
reimbursement of costs as well as an additional amount for profit:
o Cost-plus award fee contracts allow the contractor to be awarded a fee usually for
good performance.
o Cost-plus fixed-fee contracts cover both direct and indirect costs, in addition to a
fixed fee.
o Cost-plus incentive fee contracts happen when the contractor is given a fee if their
performance meets or exceeds expectations.
o Cost-plus percent-of-cost contracts allow the amount of reimbursement to rise if
the contractor's costs rise.
6. Written Contract
A written contract is a document that lays out the duties, responsibilities, and
commitments for every party involved. It's a way for everyone to remember what was
agreed to, especially in complex deals. These agreements are legally binding and differ
from oral contracts since they are on paper and contain a signature from all parties of the
agreement. Written contracts are a commonly-used document to protect the terms of any
agreement.
In order for a written contract to be legally binding, it must contain four key elements:

Mutual Assent. All parties must agree to the terms of the contract and must display
their signature on the contract to certify their agreement.

Consideration. The agreed-upon action or business dealing, typically something of
value which a party is not already entitled to, must be reasonable and fair for all
parties.

Capacity. All parties of the written contract must be of sound mind and able to
make the agreements set forth within the agreement
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
Legality. The action set forth in a contract must be legal according to state and
federal law
For example, you can't create a written contract stipulating someone pays you $1,000
for nothing in return. In this instance, that would be considered a gift instead of a contract.
The purpose of a written contract is to define the terms and conditions of a business
agreement. These documents focus on legality and enforceability while defining the
duties and responsibilities of each party of the contract. Written contracts also contain
information that solidifies the expectations of each party of the written contract while being
concise and clear.
Types of
Contract
Advantages
Disadvantages
Certainty Comes at a Higher Cost
While a fixed-price contract gives a
Certainty of Costs
buyer more predictability about the
A fixed-price contract gives both the future costs of the good or service
buyer and seller a predictable negotiated
Fixed Price
Contract
in
the
contract,
this
scenario, offering stability for both predictability may come with a price.
during the length of the contract. A The seller may realize the risk that he is
buyer may be concerned about the taking by fixing a price and so will
cost of a good or service suddenly charge more than he would for a fluid
increasing, adversely affecting his price, or a price that he could negotiate
business plans.
with the seller on a regular basis to
account for the greater risk the seller is
taking.
Time and
With assurances that all costs will Clients often prefer a fixed price
materials
be covered, time and materials contract because their risk is lower and
contract
contracts are simple to implement budgeting is easier. When bidding
P a g e 13 | 21
and a low risk for the contractor. against a fixed price contract, the
Profit is predictable. Adjustments contractor with a time and materials
are easy when specifications or contract may lose the bid. Tracking
resource needs change.
materials costs and labor hours is extra
work for the contractor. With openended labor hours, the contractor’s
laborers may not be motivated to work
efficiently. Including a not-to-exceed
clause can help offset this problem.
Implied contract terms allow the
parties to skip over negotiating or
Implied
writing
certain
contract
contracts because they are legally
assumed
terms
implicitly
in
when
their
the
contract is entered into.
A unit price contract is useful for
projects that can be easily and
logically split into bundles of work
Unit price
contract
and for which the final scope of
work is unclear. Should a project
require more work than originally
estimated, the contractor can add
and bill for pre-priced units, thereby
preserving profitability.
Cost-Plus
contract

They eliminate some risk for
the contractor.
An
implied
contract
is
sometimes
difficult to enforce because proving the
justice of the claim is a matter for
argument, not a simple matter of
producing
a
signed
document.
In
addition, some jurisdictions place limits
on implied contracts.
Delay in Payments
Many
times
contractors
face
the
problem of delay in their due payments.
Remeasurement or adding up units to
work is a time taking process. Its
planning and approval may delay the
entire project. This will eventually delay
the payment of the contractor.

They may lead to a longer
timeline for the project
P a g e 14 | 21

They cover all the expenses

Might lead to disputes when
related to the project, so
trying to recover construction-
there are no surprises.
related expenses
Writing up an agreement takes more
-Making
aware
both
of
the
parties
effects
seriously
of
the
agreement, both when it comes to
Written
performance and nonperformance.
contract
-Preventing misunderstandings at a
later date because both parties will
have previously articulated their
intentions.
time than verbally agreeing. It can lead
to delays as well as confusion. Legal
terms may not be clearly understood by
both parties. A written contract takes
more
time
and
sometimes
limits
flexibility, but it also makes agreements
easier to enforce. Agreements between
partners may also receive veracity by
not relying on what they say over a
friendly discussion.
CL03 : Explain Terms Of Contract
A contract term is defined as any provision or term that forms part of a contract. Each
of these terms provides a contractual obligation and if this is breached, then it can lead
to litigation.
A contract is one of the most common things used within a business. They help to
define any new relationship or agreement. They can be lengthy in some cases, but
typically have the simple aim of establishing terms and conditions for each party.
Every contract that a business will enter will have key terms that fall into a variety of
categories. The terms of a contract can bind parties by law to meet a set of minimum
obligations, which is why the groups involved will commonly go back and forth during
negotiations on clauses and terms until both are satisfied.
Put simply, the terms of a contract are there to protects the parties’ best interests by
establishing deadlines, fees, and compensation. Some terms are standard and can be
P a g e 15 | 21
seen in a variety of contracts. But others can be exclusively specific to the parties involved
and the given contract.
3a) What are types of Contract Terms
Contractual language is often used without ensuring that each party knows the correct
legal terms. To make this easier, we’ve broken down the types of contract terms you may
come across in a standard contract.
Typically, contract terms can be defined into three categories: conditions, warranties,
or innominate terms. By categorising contract terms into categories, it determines the
remedies that are available if either party is ever in breach of the contract.
1. What is a condition
A condition is essentially the basis for a contract. It provides for the obligations of
each party in an agreement. The simplest way to think of a condition in contract
law is found in the terms “If…then.” “If” one party fulfills an obligation as contained
in the agreement, “then” the other party to the agreement must fulfill their obligation
to that party.
For instance, a condition in a contract for a sale of goods might include the terms
that the successful completion of a contract relies upon an agreed upon delivery
date of the goods. In order to fulfill the terms of that contract, the seller will only
receive compensation for their goods if the buyer receives those goods by that set
date.
If the seller should fail to meet that deadline, then the seller can be held in breach
of the contract. The injured party can treat this failure of the seller to meet their
obligations as “repudiatory,” meaning the injured party has two options:
P a g e 16 | 21
-
Terminate the contract (acceptance of the repudiation) and walk away from any
obligations they may owe the seller; or
-
Treat the contract as continuing (affirmation of the contract).
In either case, the injured party can sue for damages, no matter the reason for the
breach or how little the loss to the party may be.
Two types of conditions can be found in a contract: Expressed or Implied Conditions.
Expressed Conditions
Implied Conditions
These are conditions that are assumed to
be accepted by both parties regarding
their obligations. These may include
As
the
conditions
name
that
implies,
have
these
been
are conditions that ownership is not in
clearly question, the goods are not damaged, or
described and agreed upon by both that it is not necessary to provide detailed
parties to an agreement. If obligations descriptions of the goods being sold
laid forth in an expressed condition are beyond
its
name.
For
instance
it’s
not met, a breach of contract can be accepted that a bowling ball is a bowling
determined with liability assessed and ball and not a basketball, and thus no
damages awarded.
further description is required. However,
implied conditions can be superseded by
an expressed condition if the parties prefer
to place emphasis on that issue.
2. What is a Warranty
A warranty is a term in a contract that is more like a promise by one party than
a condition agreed upon by both parties. A major difference is that if a party fails
P a g e 17 | 21
to live up to a warranty, the aggrieved party can sue for damages, but that failure
does not provide cause for termination of the contract.
If the other party considers the warranty by one party important enough, then it
could be classified as a condition. Generally, however a warranty is usually only a
statement of facts. They can be expressed or implied and can be for the lifetime of
the contract or be contractual only for a limited time.
If you suspect that an agreement has been breached, it’s always a good idea
to seek legal counsel in order to more thoroughly identify the different terms in a
contract and determine what remedies are available. Remedies can vary greatly
depending on the type of term for which the other party has not met their
obligations, and the strategies to deal with the failure may also be different.
3. Innominate Terms
Innominate terms or intermediate terms are terms of a contract that are in limbo
and are somewhere between a condition and a warranty. A term becomes
innominate when it can't be shown that it is a condition or warranty.
An important innominate term, such as one that if breached would deprive one of
the parties of the entire benefit of the contract, means that the innocent party
is allowed to terminate the contract and find other alternatives. If the innominate
term isn't as important, such as a term that wouldn't ruin the entire contract if it is
breached, the innocent party isn't allowed to terminate the contract. In that case,
the innocent party can only sue for damages.
If a breach occurs that deprives the wronged party of the entire benefit of the
contract, then the term is considered a condition and would allow the party to end
the contract. If that isn't the case, the term would be considered a warranty, and
the wronged party would be eligible to claim damages. However, if the breach
didn't really deprive one party of the benefit of the entire contract, that party could
be liable for wrongful termination. Parties give up a degree of certainty because an
P a g e 18 | 21
innocent party could become liable if a third party decides that the breach didn't
deprive them of the entire value of the contract.
CLO4 : The element of contract in the scenario of Alan and Cath.
Scenario of Alan and Cath
Alan needed money quickly. He owned an original 1886 edition of Kidnapped by
Robert Louis Stevenson, a book which he advertised in the newspaper for sale for
RM1000. Cath saw the advertisement. She telephoned Alan, saying that she would buy
the book for RM1000. Alan however, replied that he had considered the matter and that
he could not sell the book for less than RM2000.
Cath replied that she would give him RM1500. Alan replied that he would only sell
the book for RM2000 but that he would keep his offer open for seven days. He also said
that Cath could fax her acceptance to him if she wanted. The next day Alan sold the book
to his friend David because David loved book so much and because he paid RM7000 for
it. Two days later Cath decided to purchase the book for Alan’s price of RM2000. She
posted her acceptance to Alan.
The next day David told Cath that he had bought a copy of Kidnapped from Alan
for RM7000. Cath rang Alan to confirm that she had accepted his offer. Later that day
Alan received Cath’s acceptance.
Element of Contract in the scenario of Alan and Cath.
1) Offer
2) Acceptance
3) Consideration
4) Intention
The Alan case is about contract law and the basic elements of contracts law are Offer,
acceptance and consideration and intention. Offer is the first element in a valid contract.
P a g e 19 | 21
An offer or a promise or an agreement needs to be in contract because if there is no offer
then there will be no contract. The second element is Acceptance, for a contract to be
made there should be acceptance from the other party or person. When the other party
is clear with the offer, they would make an acceptance once they are clear with the rules
and regulations being offered in the contract. The third and the last element is
Consideration, Consideration in a contract would mean the other person would be giving
or promising back something in return. It would be considered an exchange which would
be made between the promisee and promisor. In Alan case we will be using the malaysian
contract laws section 2(a), 2(b) and 2(c) of Contracts Act 1950 which they are about
malaysian laws regarding offer, acceptance and consideration respectively, we will also
be using comment wealth or Malaysian cases that are relevant and applicable to our case.
The issue is, if the offer still stands after price. According to Section 2(a) in Contracts Acts
1950, “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 is
said to make a proposal.” A counter offer was already made when Alan replied to Cate
that he will not sell the book for RM1,000 but RM2,000. The counter offer was made which
will expires in seven days and Cate can fax her acceptance to him if she wanted. Then,
this means there was no consideration because Cate did not pay any money such as
deposit to Alan to keep the book for her whether she wanted to buy or not. At the end,
Cate decided to buy the book for RM 2000 and she send her acceptance to him. For the
fourth elements of contract are intention. Cate had the intention to buy the book and
fulfilled the requirement given by the buyer which RM 2000.
Alan : Advertised in newspaper = RM1000 (Invitation to treat)
Cath : Telephoned Alan = RM1000 (offer)
Alan : Changed his mind (reconsidered), counter the offer for RM1000, willing to sell not
lower than = RM2000 (counter offer = destroyed the original offer from RM1000 to
RM2000.
Cath : Counter offer (reconsidered) propose = RM1000 (counter offer)
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Alan : counter offer, let the offer RM2000 (counter offer) + expires in 7 days / keep the
books for 7 days (no consideration means, Cath did not pay any money such deposit or
anything to Alan) + fax acceptance.
REFERENCES
1) 6 Essential Elements of a Valid Contract with Examples | DocPro
2) Offer And Acceptance Cases (10+case Summary) | Sheria Na Jamii
3) Foakes v Beer [1884] UKHL 1 – Law Case Summaries
4) Contract Law Intention Case Summaries (lawteacher.net)
5) Entores v Miles Far East Corporation (lawteacher.net)
6) Week 4 Cases - Lecture notes 4 - ● Scarborough v Sturzaker (1905) 1 Tas LR 117
(pp 72-73) Facts - Studocu
7) Jones v Lock (1865) 1 Ch App 25 – Law Case Summaries
8) What Is a Fixed-Price Contract? | Ironclad (ironcladapp.com)
9) Time and Materials (T&M) Contracts: How They Work and Free Template |
NetSuite
10) Implied Contract: Definition, Example, Types, and Rules (investopedia.com)
11)What Is a Unit Price Contract? When Should It Be Used? | Construction Contracts
(levelset.com)
12)Cost-Plus Contract: Definition, Types, and Example (investopedia.com)
13)Written Contract: Everything You Need To Know (2022) (contractscounsel.com)
14)https://www.upcounsel.com/terms-of-contract-conditions-and-warranties
15)https://www.docsity.com/en/terms-of-a-contract-law-of-contract-lectureslides/231037/
16)https://www.summize.com/resources/contract-terms
17)Tutoria 4 presentation.pdf - The Alan case is about contract law and the basic
elements of contracts law are Offer acceptance and Consideration. Offer | Course
Hero
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