Agreement and acceptance?
Exercise 1
Business Law
DBA 102
Ahmad called Hassan on 1 June 2015 to sell his Honda HRV for RM 90 000 to be accepted 30 June 2015. On 7 June 2015 Hassan posted the letter of acceptance. The letter of acceptance reached Ahmad on 10 June 2015. On 6 June 2015, Ahmad sent the revocation letter and on the same day sold the car to Kamal.
(a)Advise Hassan as his legal right against Ahmad in relation to the agreement.
(b)Explain of your answer would be different if the letter of revocation of an offer reached Hassan before he posted the letter of acceptance.
Answer
June 1 Ahmad called Hassan to sell his car for 90000 to be accepted by June 30. This is an offer for that price until June 30.
June 6 Ahmad changes his mind and says no deal for the car.
June 7 Hassan mails the letter.
June 10 Ahmad receives the letter.
The mailbox rule implies that once a letter has been properly mailed then this is an acceptance. Hassan could sue for lost expenses but not for the car as he has not lost the income.
He also can sue to get the car back from Kamal.
If he had received the letter of revocation then he could do nothing but cry.
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