Business Law
OPEN UNIVERSITY MALAYSIA
FACULTY OF BUSINESS AND MANAGEMENT
Course Code: BBUN 2103
Course Title: Business Law
Name: Mariyam Anoosha Afeef
Student ID number: S11723225
Tutor Name: Ahmed Nasheed
Learning Centre: Villa College
Trimester: May 2012
INTRODUCTION
We enter into contracts that are made orally, every day, without us even realizing. For example when we buy something from a shop, we make a contract with the shopkeeper. However sometimes written contracts are required in order to enforce, such as when buying a house or buying a motorcycle on installment. The has stated that a contract is an agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. The others are consideration and intention to create legal relationship between the parties in forming a contract. The Law of Contract in Malaysia is governed by the Contracts Act 1950. Section 2 (h) of Contracts Act 1950 states that an agreement enforceable by law is a contract.
ELEMENTS OF A VALID CONTRACT
There are eight basic elements necessary to form a valid contract to be enforced by the law and they are Offer, Acceptance, Consideration, Capacity, Intention, Free Consent, Certainty and Valid object.
I. OFFER
In other words offer is a proposal. Under the section 2(a) of Contracts Act 1950, Offer is defined as “when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person to the act or obstinence, he is said to make a proposal.” When the proposal is accepted it becomes a promise and the person making the proposal is called the “promiser” and “promisee” is the person who accepts the proposal.
A valid offer must be communicated, so that the promissee may accept or reject it, and it can be
FACULTY OF BUSINESS AND MANAGEMENT
Course Code: BBUN 2103
Course Title: Business Law
Name: Mariyam Anoosha Afeef
Student ID number: S11723225
Tutor Name: Ahmed Nasheed
Learning Centre: Villa College
Trimester: May 2012
INTRODUCTION
We enter into contracts that are made orally, every day, without us even realizing. For example when we buy something from a shop, we make a contract with the shopkeeper. However sometimes written contracts are required in order to enforce, such as when buying a house or buying a motorcycle on installment. The has stated that a contract is an agreement between two or more competent parties in which an offer is made and accepted, and each party benefits. Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. The others are consideration and intention to create legal relationship between the parties in forming a contract. The Law of Contract in Malaysia is governed by the Contracts Act 1950. Section 2 (h) of Contracts Act 1950 states that an agreement enforceable by law is a contract.
ELEMENTS OF A VALID CONTRACT
There are eight basic elements necessary to form a valid contract to be enforced by the law and they are Offer, Acceptance, Consideration, Capacity, Intention, Free Consent, Certainty and Valid object.
I. OFFER
In other words offer is a proposal. Under the section 2(a) of Contracts Act 1950, Offer is defined as “when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person to the act or obstinence, he is said to make a proposal.” When the proposal is accepted it becomes a promise and the person making the proposal is called the “promiser” and “promisee” is the person who accepts the proposal.
A valid offer must be communicated, so that the promissee may accept or reject it, and it can be
References: Contracts Act 1950. (n.d.). Hamzah, A. B. (2012). Contract Assignment. Retrieved 06 25, 2012, from Scribd: http://www.scribd.com/doc/49758169/Contract-Assignment-on-Elements-of-Contracts Lectric Law Library. (2012). Contract. Retrieved 06 25, 2012, from The Lectric Law Library: http://www.lectlaw.com/def/c123.htm Mohamed, M., Shariff, N. A., Halim, R., & Anuar, H. M. (2011). Business Law. Kuala Lampur: Open University Malaysia. Routledge.Cavendish. (2006). Contract Law (fifth edition ed.). New York: Cavendish Publishing.