ASSESSMENT 1 (LAW299) GROUP KAMP7A

GROUP MEMBERS:
1. MOHD ZAIFULNIZAM BIN IBRAHIM (2018451834)
2. NOR HAIDAR BINTI MOHD HAMEL (2017639918)

QUESTION 2
Bella wrote a letter to Maya offering to sell her smartphone at the price of RM 1200.
According to the letter, the offer will be open until 10 July 2021. Maya posted a letter on
1 July 2021 accepting the offer. The letter was received by Bella on 16 July 2021. On 3
July 2021, Maya wrote another letter to Bella to cancel her acceptance and the letter
reached Bella on 18 July 2021. Bella insists that there is a valid contract between them.
Advise Maya. (20 marks)

Issue:
Whether there was a valid contract between Bella and Maya ?

Rules of Law.
- In section 4 (2) of Contract Act, whereas it provides an exception to the general rule of
communication of acceptance where the parties have intended the use of the post as a
means of communication.

- The other relevant section applicable to this question is section 5 (2) subsection (b) of
Contract Act, it mentioned that “Subsection (b) deals with revocation by lapse of time
and provides for two situations:
i) Lapse of time occurring upon the expiration of the time prescribed in the proposal for
its acceptance; &
ii) Where no time is prescribed, by the lapse of a reasonable time.”.
- The relevant case is Hashim Yeop A.Sani J. in the case Macon Works & Trading Sdn
Bhd v. Phang Hon Chin, relates the rationale of this rule: ‘An offer lapses after a
reasonable time not because this must be implied in the offer but because failure to
accept within a reasonable time implies rejection by the offeree. As a consequence, the
Court can take into account the conduct of the parties after the offer was made in
deciding whether the offeree has allowed too long a time to lapse before accepting.’

Application.
- By applying section 4 (2), it could be said that Maya and Bella’s case was affected by
the Postal rule because Maya had chosen to sent a letter of acceptance by post.

- By applying section 5 (2) Subsection (b), Maya may revoke her acceptance because
her acceptance and revoke letter was received by Bella lapse of time occurring upon
the expiration of the time prescribed in the proposal for its acceptance.

Conclusion
No, there is not a valid contract between Bella and Maya.