1.Tasks

Answer the question below in an appropriate format of legal essay with reference to relevant legal authorities.

On Tuesday, Roopa World Ltd. (RW) offers to sell 500 wrist watches to Zumba Online Ltd. (ZO) at RM140.00 per watch. The offer to ZO is sent by fax and includes the following statement:

"Please send an acceptance by 4pm today. Delivery will occur on Thursday".

ZO emails an acceptance at 2pm. The email is accidentally deleted by one of the administrative assistants at RW before it is passed on to RW's management. Meanwhile, ZO enters into a contract with MySale Ltd to produce new wristbands that can be sold with the watches.

Advise ZO whether there is a binding contract with RW.

(50 marks)

Would your advice differ in the following circumstances, and if so, why?

(a) ZO faxed an acceptance to RW before 4pm on Tuesday but ZO places additional term that the acceptance is subjected to RW's consideration to reduce the price for each wrist watches i.e. at the price of RM120 each.

(20 marks)

(b) The offer from RW had stipulated the following statement:

"Please send your acceptance by registered post sent before 4pm."

ZO sent a letter of acceptance before 4pm but by unregistered post which was never received by RW.

(30 marks)

(Total: 100 marks)