Question 1

Question 1 Lee Nah offers to sell a special edition Chanel handbag to Nih Nih for RM30,000. Nih Nih accepted the offer and promised to make the payment the next day at 4.00 pm. Soon after, Lee Nah received a telephone call from Kah Yah who was interested to buy the same handbag at RM35,000 for the said handbag. Lee Nah agreed to the offer of RM35,000. Kah Yah made an immediate payment for the handbag. Lee Nah later made a telephone call to Nih Nih informing her that she had sold the handbag to Kah Yah. However, Nih Nih insisted that Lee Nah was bound by the offer made to her. Nevertheless, Lee Nah denied the claim. Based on the above facts of the case, analyse the following: a) identify the issues involved in the case. [5 marks] b) with reference to the relevant provisions of the Malaysian Contract Act 1950 and judicial decisions (reported cases from the courts), advise Nih Nih and Lee Nah as to their contractual rights or obligations on the agreement made between them. [20 marks]