Business Law. Law and Application

Issue Is there a valid contract between Khalid and Siti? truth and Application When Khalid is interested in grease ones palmsing Sitis painting which she had named Hawa, Khalid met Siti and told her that he leave alone pay her RM5,000 for Hawa. This is an cater. Offer had be defined in S2(a) Contracts act upon 1950 as when one person signifies to another his provideingness to do or to come to an end from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is state to make a proposal. Under the Contract movement 1950, a proposal is something which is capable of being converted into an agreement by its espousal.Moreover, merely giving information is not an offer. For example of Harvey v Facey (1893) case, P telegraphed D Will you sell us Bumber Hall Pen? telecommunicate lowest cash price. D replied, Lowest cash price ? 900. P purported to accept the offer. The court held that price information is merely information. there was no offer to accept. Khalil had given clear information that he requirement to bargain Sitis painting with the price RM 5, 000, the offer is embody. But Siti said she will think about it. Two weeks after she made her mind that she want to sell the painting to Khalid for RM7,000 not Rm 5,000.This is a antagonistic offer not acceptance. Counter offer had be defined in S6(c) Contracts deed of conveyance 1950 as by the failure of the acceptor to fulfill a condition precedent to acceptance. Siti as the offeree makes a count offer revokes the veritable offer which made by Khalil. Counter offer had also defined in S7(a) Contracts Act 1950 in order to convert a proposal into a promise that acceptance it must be absolute and unqualified. It does refer to the case of Hyde v Wrench (1840), D made an offer to sell his house for ? 1000.P by design accepted at ? 950 but D refused, P accepted the original offer of ? 1000. The court held that counter offer terminated the original offer. There w as nothing to accept. Furthermore, acceptance had be define in S2(b) Contracts Act 1950 as when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted a proposal, when accepted, becomes a promise. Thus the original offerror whose offer has been terminated by the offerees counter offer can accept or reject the offerees counter offer.Khalid said that the price Siti offered was besides high and he did not want the painting, means that this is a rejection by Khalid. One week later, Khalid received bonus from his employer. After he got the bills to pay so and he immediately contact Siti that he will pay the RM7,000 for Hawa. This is a new counter offer from Khalid. According to S2(a) Contracts Act 1950 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 to the act or abstinence, he is said to make a proposal.But Siti has refused to sell the pain ting to Khalid with the price RM7, 000 she then said that for the price of her painting has gone up to RM10, 000. This is can counter offer. Conclusion There is no valid contract between Khalil and Siti. The effect that Siti sell her panting for RM 7,000, Khalil had refuse and reject the offer. When he wanted to buy the painting with RM 7, 000, Siti had gone up the price of her painting as RM 10, 000. For the social unit trade there is no acceptance exists. There is just exist offer, couter offer and revocation. A contact without acceptance is void, therefor there is no contract between them.