Law Assingment

1.3        Whether Fei Fei has any right of action against P. Ramli;                (5 marks)

Identification of Issues

• Whether exits a termination of proposal between Fei Fei and P. Ramli.

Explanation of the law

        Termination of proposal is defined that the revocation of proposal. In section 6(c), a proposal is terminated by the failure of the acceptor to fulfil a condition precedent to acceptance. Counter offer defined by the promise accepts the offer but then tries to impose new terms, there is no acceptance. When a counter offer is made this destroys the original offer so that it is no longer open to the offeree to accept. The counter offer operates as a rejection of the original offer. The new offer had been created. Then, the new promise now become the new promisor is making a new offer and the original promise becomes the new promise who has a right to accept or reject the new modified offer. In the case of Hyde v. Wrench (1840) 3 Bea 334; 49 ER 132, the defendant offered to sell a farm to the claimant for £1,000. The claimant in reply offered £950 which the defendant refused. The claimant then sought to accept the original offer of £1,000. The defendant refused to sell to the claimant and the claimant brought an action for specific performance.

Application of the Law

P. Ramli had made the offer by place the advertisement in the newspaper had mentioned the terms of payment only using cash. So, when Fei Fei offered P. Ramli a cheque for RM 1500.00 which means Fei Fei had terminated the offer by failure to fulfil the condition of the original offer. So, she made a counter offer was made for P. Ramli to become a party who are the new promise has the right to accept or reject the new modified offer. The original offer had been altered, it thus acted as a rejection of the original offer. The original offer cannot be revived. As such, no obligation of any sort exists between the parties.  

Conclusion of the advice

        Fei Fei was existed to a counter offer to reject the original offer. Also, P.Ramli is entitled to reject the new offer from Fei Fei with making the payment by using the cheque.

QUESTION 2

Explain the meaning and effect of a Tender in relation to the formation of a Contract.

(5 marks)

        Tender in the formation of a Contract is defined that if a company advertise inviting bids or tender to supply goods or services, the invitation to tender is not an offer. A tender submitted by a bidder was considered to be more than an offer which did not rise to any legal obligation unless or until it was accepted by the principal. It was possible for a bidder to withdraw or amend its offer. If there were a number of parties submit their tender to the advertisement by reply the company, the company has the right to the option which parties will be accepted or reject the tender submitted. Tender which also means that when the companies are invited from the public parties for the highest price or the lowest price for the tendered items or services to having the required items or services. All this are regarded as a mere invitation to treat. Thus, submitting a tender to supply good or services constitutes making an offer to the entity who requested the tender. The effect of accepting the tender of the parties depend on the terms under which it was requested and submitted.