Question

Tom made the following offers to Ken:(i) An offer to lease his land in Kuantan, 'for as long as Ken wishes'.

(ii) An offer to sell his pen collection for RM20,000.

Ken immediately accepted the first offer. As for the second offer, Ken initially replied that he would be willing to pay RM15,000 for the pen collection but Tom refused. Later Ken replied that he was willing to accept Tom's original offer at RM20,000. However, Tom now refuses both to grant the lease as well as to sell the pen collection to Ken.

(a) Explain whether there is a valid contract between Ken and Tom in respect of the offer for the lease of the land in Kuantan.

(b) Explain whether Ken can successfully sue Tom for breach of contract with respect to the offer for the sale of the pen collection.