Contract Law and Legal Analysis and Writing

Case Heng v. Peng

By San Kiri and Chhorn Songmeng

Date 13 October, 2009

This case involves Heng sent e-mail to ask his friends whether they wanted to buy his beach
house at Shihanouk Ville for $250,000 and household furnishings extra could negotiable. He
urges to get payment within ten days because he needs to cover for his mother’s medical bill.
Peng who saw the e-mail very interested to buy that house but he didn’t have enough money so
he decided to sell his own rice field for only $110,000 that it could worth to $125,000. Next
three days, Peng replied e-mail to Heng that he accepted to buy the house and willing to pay
immediately. When saw Peng’s e-mail Heng was shock he don’t want to sell his house at the
time being because his brother will pay his mother’s medical bill.

Is there a valid offer when Heng e-mail to his friends?

A Valid offer and proper acceptance can form a legal binding contract. The offeror must be
serious, definite and reasonably clear and communicate to the offeree. Heng was seriously
intended to sell his house when he sent e-mail to his friends but he withdrawn later when he
knows his brother will cover for his mother’s medical bill. His revocation was made after he saw
Peng’s email accepted his offer.

Can Heng revoke his offer after Peng acceptance?

The general rule to effective revocation, the offeror can revoke only before acceptance;
communication must be to the offeree and effective only when received by the offeree. Heng
was late to inform to his friends Peng that he has withdrawn his offer. So after Peng proper
acceptance the contract was bind.

Can Heng claim the contract voidable?

In Decree No 38 Article 1: A contract is an agreement freely entered into by two or more

persons to create, change or terminate one or more obligate which bind them.

In this circumstance, Heng was willing to sell his house just because he needs money to cure his
mother’s life. He thought that his mother more important than his house that why he decided to
sell it out although in low price.

In Decree No 38 Article 9: Duress is a ground for avoiding a contract if such duress is in the
form of mental or physical duress against a party to the contract, his/her husband or wife, any
ascendants or any descendants of the party.

If the contract can’t be voidable, Can Heng cancel the contract and pay damage to Peng?

In Decree No 38 Article 38: If the sale has been canceled, the vendor shall pay damages to the
purchaser relating to the loss of the sale item or any damages resulting from the vendor’s fault.

Peng has sold his rice field only $110,000 which price could worth $125,000. Peng has lost his
interest for $15,000. If Heng agree to pay for his damage $15,000 the contract could be cancel.

In Decree No 38 Article 2: Every contract shall link the personal interests of the contracting
parties with the interests of society. End