Questions

exercise 3-

The ‘Lovely Pet’ store is a shop that sells various kinds of things for cats and dogs such as food, toys, bedding and bags to transport small animals. In order to get rid of all the old stock, the owner, Sari, decided to sell them at a discount of 50%.

She mentioned her intention to do so to her cousin Timah, when the latter came to the shop for a visit. Timah has a cat café and was extremely excited to hear this. She wanted to buy the entire stock of the canned food brand of ‘DokiDoki’. She asked Sari,

“Since we are cousins and I am buying in bulk, would you consider giving me a 70% discount?”

what needs to be considered in answering: if you believe there is offer, carry on to answer if there is accepatance.

Tara (intial offeror) decided to sell stock for 50% discount
Tara mentioned her intention to Timah (timah is a cat cafe owner, business relationship? so it is relevant to mention such offer to someone who owns a business. there is intention, though they are friends)
Timah, asked if Tara would accept 70% instead
counter offered took place. (roles were switched, Timah is now the offeror, tara is the offeree)
original offer which was 50% was revoked due to the new off
Full answer: The issue in the question is whether there is a counter offer made by Timah. Firstly, when Tara mentioned her intention to Timah that she she decided to sell the old stocks for 50%, there was an offer made. The reason to support this answer is that Timah is cat cafe owner therefore, Tara believed, it was relevant to bring such offer to Timah thus, there is a commercial or business relations between them, and it was indeed a valid offer. However, by Timah stated “Since we are cousins and I am buying in bulk, would you consider giving me a 70% discount?” acceptance was never made. According to Section 7 (a) Acceptance needs to be absolute and unqualfied. Thus, any acceptance that has counter-offer and amendement of offer terms will be deemed invalid. In this case, Timah made a counter-offer and immediately revocking the original offer. In the case of Malayan Flour Mills Bhd v Saw Eng Chee & Anor, there was no concluded agreement. Even if there was a draft
agreement where the parties had agreed to the terms, the draft agreement was never produced to enable the court to determine whether there was a concluded contract. Going back to Timah and Tara, once there had been a counter-offeer. the roles were swtiched, and Timah is now the offeror. and it is up to tara whetehr to accept the new offer. In conclusion there is a probability that there is no a binding contract was made yet, due to the counter offer.
The issue in this case is whether Timah has made a counter-offer. Firstly, when Tara expressed her intention to Timah to sell the old stock at a 50% discount, an offer was indeed made. This is supported by the fact that Timah is the owner of a cat café, making it relevant for Tara to present such an offer to her, indicating a commercial relationship between them. Hence, this constituted a valid offer. However, when Timah stated, “Since we are cousins and I am buying in bulk, would you consider giving me a 70% discount?”, acceptance was never finalized. According to Section 7 (a), acceptance must be absolute and unqualified. Consequently, any acceptance that includes a counter-offer and amendments to the terms will be considered invalid. In this case, Timah made a counter-offer, thereby immediately revoking the original offer. In the case of Malayan Flour Mills Bhd v Saw Eng Chee & Anor, it was found that no concluded agreement existed. Even if there had been a draft agreement outlining the terms, the draft was not provided for the court to determine whether a binding contract was reached. Referring back to Timah and Tara, once a counter-offer was presented, the roles were reversed, placing Timah as the offeror. It is now up to Tara to decide whether to accept the new offer. In conclusion, it is likely that no binding contract has been established yet due to the counter-offer made.

exercise 5

i offered basikal and changed mind

sent both letter

arrived at the same time

open the revocation