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ELEMENT OF A CONTRACT - Coggle Diagram

- - - - Offer made in words are express.
    - - Offer made in otherwise than in words, the promise is said to be implied.
  - - - Addressed to specific person
      - Only the addressee may accept the offer
      - Who is not addressee cannot accept the offer.
      - Once this offer is accepted, it becomes a bilateral contract
    - - This type of offer if accepted, it becomes a unilateral contract.
      - Carlill v Carbolic Smoke Ball Co. (1892)
  - - - Case: Harvey v. Facey [1893] AC 552
      - A statement of minimum price at which a party may be willing to sell will not amount to an offer.
    - - Case:Fisher v Bell
      - Case: pharmaceutical society v boots cash chemists (1953)
      - An offer is made by a customer when he or she selects the desired goods for payment at the counter
    - - HARRIS V NICKERSON (1873)
    - - Bidding is an offer
      - Knocking the hammer by Auctioneer is an acceptance
  - - - S 6 (a) of Contracts Act Revocation by notice - Revocation is effective after the notice of revocation had come to the actual knowledge of the offeree
      - S 6 (b) of Contracts Act Revocation by lapse of time
      - S 6 (c) of Contracts Act Revocation by failure of offeree to fulfill condition precedent to the acceptance
      - S 6 (d) of Contracts Act Revocation by death or mental disorder of the offeror
- - - - An agreement is not void merely because the consideration is inadequate.
      - Must have consent of the promisor
    - - Case : Venkata Chinnaya v Verikata Ma’ya
        
        A sister agreed to pay an annuity of Rs653 to her brothers who provided no consideration for the promise. But on the same day, their mother had given the sister her estate. Subsequently, the sister failed to fulfill her promise to pay the annuity, her brother sued her on the promise.
        
        She was liable on the promise on the ground that there was a valid consideration for the promise even though it did not move from the brother.
    - - Section 64 of CA, 1950 “Every promise may dispense with or remit, wholly or in part, the performance of the promise made to him, or may extend the time for such performance, or may accept instead of it any satisfaction which he thinks fit”.
      - Section 64 of CA, 1950 A owes B RM5000. A pays to B. and B accepts in satisfaction of the whole debt, RM2000 paid at time and place which the RM5000 were payable. The whole debt is discharged.
      - Section 64 of CA, 1950 A owes B RM5000. C pays to B RM1000 and B accepts them, in satisfaction of his claim on A. This payment is a discharge of the whole claim
    - - Promise is subsequent to the act and independent of it.
      - English law: Past consideration is not a good consideration.
      - Malaysian law: Past consideration is a good consideration.
      - Section 2 (d) of CA, 1950 : “…has done or abstained from doing”.
- - - - Language used too vague
- - - - Contract can be made orally, in writing or by conduct
- - - - Minors Mohori Bibee v Dhurmodas Ghose
      - Insane person
      - A person disqualified by the law
    - - based on Age of Majority Act 1971
      - General rule
        
        Contract entered by minor is void
        
        Mohori Bibee v Dharmodas Ghose
      - Exceptions
        
        Section 69 of Contracts Act
      - Test of necessities
        
        Nature of goods
        
        Minor actual needs
        
        His station in life
      - Nash v Inman (1908)
        
        Contract for scholarship (Contracts [Amendment] Act 1976) A tilor supplied high- class clothing to an undergrade
        
        Government of Malaysia v Gurcharan Singh & Ors (1971)
        
        Contract for insurance (Insurance Act 1963)
- - - - Section 5 (2) of Contracts Act ‘An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards’
    - - Case: Adams v Lidsell (1818)
      - Section 4(2) of Contracts Act provides that the acceptance is complete as against the offeror when it is put in the course of transmission to him.
    - - Case: Felthouse v. Bindley (1862)
      - Section 6 (b) of Contracts Act Acceptance must be accepted within a reasonable time
      - Section 7 (a) of Contracts Act Acceptance must be absolute and unqualified
      - acceptance must be communicated to the offeror.