Contract and Proposal
T1 Q3
Issue : Whether the advertisement posted by Bakar is prepared or invitation to treat? Whether Simon Lee can claim the RM 5000 reward?
Whether Bakar can revoke the offer for reward after the climbers have started climbing the mountain?
Law
According to s.2(h) of the Contract Act, a contract is an agreement enforceable by law. For example, offer acceptance.
According to s.2(a) and Ho Ah Kim v Paya Trubong Estate, proposal is an action that shows willingness to enter into a contract.
Invitation to treat is an invitation to make a proposal. According to Coelhor Public Services Commission and Syarikat Gunung Sejahtera V Lim Sze On , advertisements are invitation to treat.
However, according to s(8) and Carlill V. Carbolic Smoke Ball, advertisements that are to the world at large, promising something in return for an act are proposals for unilateral contracts. If a person performs the action as required in the advertisement, he is accepting the proposal in the advertisement, not making a proposal.
According to s.5 & 6 , revocation of proposal can be done anytime before it is accepted. The proposer cannot revoke the proposal once it is accepted.
Application :
The advertisement posted by Bakar is a proposal for an unilateral contracts. When Simon successfully become the 1st person to reach the summit of Mount Kampar, he had accepted Bakar’s proposal in the advertisement.
Simon Lee does not have to communicate acceptance to Bakar because acceptance is supposed to be the action of reaching the summit of Mount Kampar.
Since acceptance is only the action of reaching first, Bakar can revoke the reward of RM5000 after the race begins, but he must do so before anyone reaches the top.
Conclusion : The advertisement posted by Bakar is a proposal for unilateral contract.
Simon Lee can claim the RM5000 reward.
Bakar can revoke the offer of reward after the climbers have started climbing the
Issue : Whether the advertisement posted by Bakar is prepared or invitation to treat? Whether Simon Lee can claim the RM 5000 reward?
Whether Bakar can revoke the offer for reward after the climbers have started climbing the mountain?
Law
According to s.2(h) of the Contract Act, a contract is an agreement enforceable by law. For example, offer acceptance.
According to s.2(a) and Ho Ah Kim v Paya Trubong Estate, proposal is an action that shows willingness to enter into a contract.
Invitation to treat is an invitation to make a proposal. According to Coelhor Public Services Commission and Syarikat Gunung Sejahtera V Lim Sze On , advertisements are invitation to treat.
However, according to s(8) and Carlill V. Carbolic Smoke Ball, advertisements that are to the world at large, promising something in return for an act are proposals for unilateral contracts. If a person performs the action as required in the advertisement, he is accepting the proposal in the advertisement, not making a proposal.
According to s.5 & 6 , revocation of proposal can be done anytime before it is accepted. The proposer cannot revoke the proposal once it is accepted.
Application :
The advertisement posted by Bakar is a proposal for an unilateral contracts. When Simon successfully become the 1st person to reach the summit of Mount Kampar, he had accepted Bakar’s proposal in the advertisement.
Simon Lee does not have to communicate acceptance to Bakar because acceptance is supposed to be the action of reaching the summit of Mount Kampar.
Since acceptance is only the action of reaching first, Bakar can revoke the reward of RM5000 after the race begins, but he must do so before anyone reaches the top.
Conclusion : The advertisement posted by Bakar is a proposal for unilateral contract.
Simon Lee can claim the RM5000 reward.
Bakar can revoke the offer of reward after the climbers have started climbing the