Assignment 1

Case Study:
Roy is a car sales man operating a business called Roys Garage. He
puts an advertisement in the newspapers on 19 th September 2015 which
reads:
For sale: 1999 Proton Wira. If interested, please contact Mr. Roy at
Roys Garage
(a)

Explain the legal effect of Roys advertisement. (3 marks)

(b)
to:

Would your answer be different if Roy changed his advertisement

On Offer / For Sale: Red 1999 Proton Wira, automatic transmission.

Price: RM1500.00. First come, first serve. To accept, please send in a
cheque for RM500.00 as a deposit to Roys Garage by 25 th September
2015.
If yes, please explain. (4 marks)

(c) Lawrence sees the advertisement and is interested in buying the

car. He goes to Roys Garage and gives Roy a cheque for RM500.00.
However, before he gives the cheque he tells Roy he will only buy the
car for RM1000.00. Is there a contract between Lawrence and Roy? (3
marks)

(d) Henry sees the advertisement. He decides that he would like to

buy the red proton wira. He posts a letter enclosing a cheque to Roys
Garage on 24th September 2015.
Explain the legal effect of Henry posting the letter and cheque. Is there a
contract between Henry and Roy? (2 marks)

(e) Henrys letter only arrives on 26 th September 2015. Can Roy reject
Henrys cheque since it is already one day after 25 th September 2015?
Please explain. (3 marks)

(f)
On 23rd September 2015, Roy decides he no longer wants to sell
the car. He posts another advertisement on 23 rd September 2015 in the
newspaper saying:
Notice: Red 1999 Proton Wira with automatic transmission no longer for
sale. Roys Garage advertisement on 19th September 2015 is hereby
cancelled/ revoked.
Explain the legal effect of this advertisement. (2 marks)

(g) What would happen if Henry still posted his letter and cheque on
24th September 2014. Is there a contract between him and Roy? (3
marks)