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Statute of law and case law business law

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Subject: Business Law
INSTRUCTION:
Answer the question below. Your answer should be supported with relevant Articles / Sections
from Statute of law and Case Law
Question:
Aaron decides to sell his limited edition Range Rover and is considering buying a smaller
vehicle due to petrol prices increasing dramatically in recent months. Aaron places an
advertisement in his car window on 1st June stating: 'Range Rover excellent condition, first
owner RM85K or nearest offer'. Please contact Aaron on 0123456789 if you are interested.
Michael, Aaron's neighbor, seeing the advertisement earlier that day, decides to contact Aaron
that evening, and arranges to inspect the vehicle. After checking the car, Michael states that he
will contact him if he's still interested.
On 3rd June, Chloe calls Aaron's mobile number after inspecting the vehicle (the previous day)
and offers RM80K. Aaron is delighted and says 'how about RM83K?'Chloe states that she will
need to discuss this with her husband, Aaron tells her to call back at 6 pm.
Chloe contacts Aaron on his mobile phone at 7.30 pm; however, the phone switched off. Chloe
did not leave a message. Chloe tries to call Aaron's at his work number the following day;
however, Aaron is at a conference, so she leaves a message on his answering machine, stating
that she wants the Range Rover for RM83K. Aaron doesn't return to his desk until late that
afternoon and fails to listen to his answering machine that day.
Vishnu, a dedicated car dealer, contacts Aaron the next day (4th June), on his mobile phone,
stating that he's interested in the vehicle, and arranges to meet Aaron during his lunch break to
inspect the car. Aaron meets Vishnu and accepts an offer of RM85K from Vishnu. Michael and
Chloe contact Aaron the next day (5th June) demanding the vehicle for the advertised price.

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Question : Advise Aaron on his legal position under the contract between Michael and Chloe.
Name and describe the court which is empowered to hear such an application.
Answer
There is no contract between Aaron and Michael or Chloe
This case will be heard in Sessions court
Explanation
For a valid contract to exist there must be an offer and acceptance from the offeree. The offeree
must communicate his acceptance either orally or in writing to the offeror. In the case of
advertisement, this is an invitation to treat that invites offers from prospective buyers with the
other party having freedom to either accept or reject the offers. An offer can be revoked before
acceptance by the offeree.
Chloe makes an offer of RM 80k and Aaron makes a counter offer of RM 83k .A counter offer
terminates an offer and the previous offer can thus not be accepted again. A counter offer results
to negotiations until a mutually agreeable contract is made. Chloe makes another offer of RM
83k which is not accepted by Aaron since he does not get her message and thus there is no valid
contract.
Michael does not make any offer he only makes inquiry on the invitation to treat. A inquiry on
the invitation to treat does not amount to making an offer. Thus there is no contract between
Aaron and Michael die to lack of an offer from Michael.
This case will be heard in Sessions court in Malaysia. Jurisdiction of Sessions courts are;

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Subject: Business Law INSTRUCTION: Answer the question below. Your answer should be supported with relevant Articles / Sections from Statute of law and Case Law Question: Aaron decides to sell his limited edition Range Rover and is considering buying a smaller vehicle due to petrol prices increasing dramatically in recent months. Aaron places an advertisement in his car window on 1st June stating: 'Range Rover excellent condition, first owner RM85K or nearest offer'. Please contact Aaron on 0123456789 if you are interested. Michael, Aaron's neighbor, seeing the advertisement earlier that day, decides to contact Aaron that evening, and arranges to inspect the vehicle. After checking the car, Michael states that he will contact him if he's still interested. On 3rd June, Chloe calls Aaron's mobile number after inspecting the vehicle (the previous day) and offers RM80K. Aaron is delighted a ...
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