ASSIGNMENT QUESTION
On the 15th February 2015 Ray spoke with Jack and offered to sell him a quantity of machinery at a price of RM30,000. Jack wished to take time to think about it and Ray agreed to leave the option open for 10 days.
Jack wrote to Ray on the 18th February 2015 asking if he would accept payment within 6 weeks of delivery.
On the 20th February, Ray received an offer of RM35,000 for the machinery from Marina through email which he accepted. He immediately wrote to Jack withdrawing the offer. Meanwhile on the same day, Jack, not having heard from Ray, wrote to Ray accepting his offer to sell the machinery at the price of RM30,000.
Jack received Ray's letter of the 20th February 2015 on the 22nd of February 2015.
Students are required to address the following issues:
1. Does Jack has any claim to the machinery? If so, can he sue Ray for breach of contract?
2. If Jack had paid RM500 to Ray to keep the offer open for 10 days, will the final outcome be any different?
3. If there is a breach of contract between Ray and Jack what are the possible remedies available for Jack?
Advise Jack, explaining fully the legal principles involved based on the Law of Contract.
ANSWER SCHEME
The students are required to address the following issues:
Issues:
• Invitation to treat
• Offer
• Option
• Define the terms.
• Compare and contrast offer with invitation to treat.
• Is there an offer here?
• Counter offer v request for more or further information.
• The operation and effect of postal rule and electronic communication and its application to acceptance and revocation