Question
Sharon, on behalf of her company wishes to buy a tractor for their construction project. He wrote to CAT Limited saying, I was very
Sharon, on behalf of her company wishes to buy a tractor for their construction project. He wrote to CAT Limited saying, " I was very impressed with your new Ford Country tractor which you demonstrated at the roadshow last week. Will you please arrange for delivery of the demonstration tractor as soon as possible? I will pay the RM75,000.00 by equal instalments over five months as stated in your display and brochures at the demonstration."
CAT replied as follows, " We are delighted to accept your order for our tractor. We do however require to be paid by a first payment on delivery of RM30,000.00 and the remainder in equal instalments over five months."
Sharon wrote back saying, " I think we have a contract for payment over five months, but if not would it be possible to pay the total sum over the four months?"
On the morning that CAT received this last communication from Sharon, Klisen, a foreigner, came to the office and he purchased the tractor for RM75,000.00
You are required to give your opinion on whether there a valid contract between Sharon and CAT. Explain your answer, referring to relevant legal principles and provide example of real life case law in Malaysia. Follow Contracts Act 1950Malaysia.
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