law question
Assessment Question
Ali had an antique motorbike which he decided to sell. He parked the motorbike on his front lawn with a sign " For sale- RM20,000". Ah Chong, who saw the sign, said to Ali that he would be prepared to buy the motorbike for RM15,000. Ali replied that the price is too low and suggested RM18,000. Ah Chong responded by asking if Ali would be prepared to accept payment of the RM18,000 in three monthly instalments of RM6,000 each. Ali replied that he would not. Ali then added," Anyway I am no longer interested in selling the motorbike to you." At that precise moment Ali spoke these words, a helicopter flew low overhead and drowned out his words. Ali did not bother to repeat what he had just said and was leaving when Ah Chong quickly agreed to the RM18,000 suggested earlier by Ali. Discuss whether there is a contract between Ali and Ah Chong. Explain whether your answer would be different if the helicopter flying overhead had not drowned out Ali's words and Ah Chong heard what was said?
Assignment Answer In this assignment, I would like to discuss the question above part by part. First of all, from the sentence ," He parked the motorbike on his front lawn with a sign " For sale- RM20,000"," it is said that there was an invitation to trade. Invitation to treat or simply speaking information to bargain means a person inviting others to make an offer in order to create a binding contract. An example of invitation to treat is found in window shop displays and product advertisement. . In another words it is a special expression showing a person’s willingness to negotiate. The issue of invitation to treat was discussed in the case of Fisher v Bell[1961] 1 QB 394 by the English Court of Appeal : “It is perfectly clear that according to the ordinary law of contract the display of an article with a price on it in a shop window is merely an invitation to treat. It is in no sense an offer for sale the acceptance of which constitutes a contract.”[1]. An
Ali had an antique motorbike which he decided to sell. He parked the motorbike on his front lawn with a sign " For sale- RM20,000". Ah Chong, who saw the sign, said to Ali that he would be prepared to buy the motorbike for RM15,000. Ali replied that the price is too low and suggested RM18,000. Ah Chong responded by asking if Ali would be prepared to accept payment of the RM18,000 in three monthly instalments of RM6,000 each. Ali replied that he would not. Ali then added," Anyway I am no longer interested in selling the motorbike to you." At that precise moment Ali spoke these words, a helicopter flew low overhead and drowned out his words. Ali did not bother to repeat what he had just said and was leaving when Ah Chong quickly agreed to the RM18,000 suggested earlier by Ali. Discuss whether there is a contract between Ali and Ah Chong. Explain whether your answer would be different if the helicopter flying overhead had not drowned out Ali's words and Ah Chong heard what was said?
Assignment Answer In this assignment, I would like to discuss the question above part by part. First of all, from the sentence ," He parked the motorbike on his front lawn with a sign " For sale- RM20,000"," it is said that there was an invitation to trade. Invitation to treat or simply speaking information to bargain means a person inviting others to make an offer in order to create a binding contract. An example of invitation to treat is found in window shop displays and product advertisement. . In another words it is a special expression showing a person’s willingness to negotiate. The issue of invitation to treat was discussed in the case of Fisher v Bell[1961] 1 QB 394 by the English Court of Appeal : “It is perfectly clear that according to the ordinary law of contract the display of an article with a price on it in a shop window is merely an invitation to treat. It is in no sense an offer for sale the acceptance of which constitutes a contract.”[1]. An