In order to finance his university studies Nedan ran a business buying and selling organic health products via mail order. However, he now has to concentrate on his final examinations so he decides to wind up his business.

Nedan now needs to raise some money to support himself through the last few months of University so he decides to sell his van and his Rolex watch.

Nedan puts an advertisement in the back window of his van which states: This van is for sale. 6 years old, low mileage. RM30,000: Telephone: Nedan 0173679810. On 4 March, Vijay telephones Nedan and asks him for his lowest price. Nedan informs Vijay he will accept RM25,000 for the van. Vijay asks Nedan if he will hold his offer open for a few days. Nedan agrees to hold the offer open for her until 7 March.

On 5 March, Vijay, having been unable to get through on the telephone, sends a letter to Nedan, letting him know that he accepts his offer to sell the van to him for RM25,000. On 6 March, Nedan sends a text to Vijay to say that he has sold the van.

On 7 March, Nedan e-mails Cindy, a friend, asking if she wants to buy his Rolex for RM2,000. Cindy e-mails by return, asking Nedan if he will accept payment by 3 instalments. She gets a reply from Nedan saying No. Later that day, Nedan gets a message on his mobile phone. The message is from Cindy accepting the offer of the Rolex for RM2,000. Nedan has now decided that he cannot part with the watch which once belonged to his great-grandfather and sends a text to Cindy stating no sale.

On 15 March, Nedan receives the following mail:

A letter from Vijay informing him that he intends to sue for breach of contract.

A letter from Cindy informing him that she intends to sue for breach of contract.

Nedan knows that you have studied law and asks you to advise him. Answer the following questions discussing all relevant issues and ensuring you support your answers with appropriate legal authority

a) Discuss whether a valid contract has been made between Nedan and Vijay.

b) Discuss whether a valid contract has been made between Nedan and Cindy.

3.1 Objectives

The students are required to demonstrate their understanding on the law of contract relating to offer and acceptance. Students are required to attempt this case study by applying the following guidelines:

identify the relevant legal issues

apply the legal principles from cases or statute

develop legal arguments from these principles

arrive at a considered conclusion.

Generally the students are awarded marks on their ability to figure out the appropriate laws particularly within the scope of offer and acceptance of the contract in governing the situation and demonstrate the relevancy of the selected laws to the given situation. Students need to provide the relevant statutory provisions and case laws to support their arguments.. This exercise would provide the students with a rich understanding on the formation of agreement and its legal consequences.

The students are expected to discuss and apply the following legal principles:

• Definition and rules of offer and how it is different from invitation to treat (ITT);
• The legal position of ITT in the case of advertisement;
• The ways an offer may be revoked;
• The definition of acceptance and the rules in regulating an enforceable acceptance.

3.1 Objectives

The students are required to demonstrate their understanding on the law of contract relating to offer and acceptance. Students are required to attempt this case study by applying the following guidelines:

identify the relevant legal issues

apply the legal principles from cases or statute

develop legal arguments from these principles

arrive at a considered conclusion.

Generally the students are awarded marks on their ability to figure out the appropriate laws particularly within the scope of offer and acceptance of the contract in governing the situation and demonstrate the relevancy of the selected laws to the given situation. Students need to provide the relevant statutory provisions and case laws to support their arguments.. This exercise would provide the students with a rich understanding on the formation of agreement and its legal consequences.

The students are expected to discuss and apply the following legal principles:

• Definition and rules of offer and how it is different from invitation to treat (ITT);
• The legal position of ITT in the case of advertisement;
• The ways an offer may be revoked;
• The definition of acceptance and the rules in regulating an enforceable acceptance.