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Business Law

Tutorial Question 2
by

maisarah abedin

on 30 October 2012

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Transcript of Business Law

FACULTY OF BUSINESS AND ACCOUNTANCY BUSINESS LAW
CBEB 2106 LAW
(CASES AND SECTIONS) THE END FACTS Group Members:
Chua Seng Ghim CEB110089
Maisarah Zainon Abedin CEB110091
Radziah Rahmat CEB110095
Tan Suan Ching CEB110096

Lecturer's Name: Mr. Cyril Hilaris A/l M Ponnu Tutorial Question
-Group 2- Whether the contract is made between Ali and CoolAir Sdn Bhd?
If the contract is made, can the contract be cancel? ISSUE S4(2)(a)-the communication of an acceptance is complete as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor.

Case: Ignatius v Bell (1913)
The plaintiff sued for specific performance of an option agreement which purported to give him the option of purchasing the defendant’s rights over a piece of land. This option was to be exercised on or before the 20th day of August, 1912. The parties had contemplated the use of the post as a means of communication. The plaintiff sent a notice of acceptance by registered post in Klang on August 16th, 1912 but it was not delivered till the evening of August 25th because the plaintiff was away. The letter had reminded in the post office at Kuala Selangor until picked up by the defendant. The Court, applying section 4, held that the option was duly exercised by the plaintiff when the letter was posted on August 16th. On 1st February, CoolAir Sdn Bhd has offered to Ali an air conditioner at a price of RM 3000.
The offer remains open until 8th February.
On 7th February Ali accept the offer by leaving a message with the answering service and sends letter to confirm the order.
After that, Ali wish to cancel the order.
Ali call CoolAir Sdn Bhd and the secretary points out that she has not listening to answering services but she will note down his wishes.
Ali’s letter of 7th arrives on 9th , at CoolAir Sdn Bhd’s premises. LAW
(CASES AND SECTIONS) S5(2)-an acceptance may be revoked at anytime before the communication of the acceptance is complete as against the acceptor, but not afterwards.

S4(2)(b)- the communication of an acceptance is complete as against the acceptor, when it comes to the knowledge of the proposer. CONCLUSION Based on this case, acceptance have been made but the revocation of acceptance can still be done as long as the communication of cancellation reached earlier from acceptance of communication. BIBLIOGRAPHY Beatrix Vohrah, Wu Min Aun. (2008). The Commercial Law Of Malaysia. Pearson Malaysia Sdn. Bhd.
Jalil, D. M. (2011). Clarification of Rules of Acceptance in Making Business Contracts. Journal Politics and law, 114.
Malaysia, p. U. (2006). Undang-Undang Perniagaan. Universiti Utara Malaysia.
Services, I. L. (2006). Akta Kontrak 1950 (Akta 136) & Akta Kontrak Kerajaan 1949 (Akta 120). Golden Books Centre Sdn. Bhd.
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