Monday, February 15, 2010

Law of Contract

Question:
Due to the rampant robbery in which the robbers used ski masks to cover their faces, the Cyberjaya Authority issued a regulation that makes it illegal to sell ski masks. As a safety measure, the rule also makes it illegal for anyone to offer for sale the ski masks. In spite of this, Messy has not cleared the ski masks from the shelves of his sport equipment shop in Cyberia. The authority officials came to know about this and later on charged Messy under the new regulation. Advise Messy according to Contract Act 1950 and relevant decided case(s).

Answer:

In the case above, Messy have been charged due to the display of item which is ski mask in his shop. Under the new regulation, it is illegal for anyone to offer for sale the ski masks. There is no binding contract between any parties and Messy in the case above. Therefore, Messy cannot be charged by the authority under the new regulation.
This is because in the first place, under the Contract Act 1950, it requires offer and acceptance and consideration for a contract to exist. In this case, by selling the ski mask can only amount to an offer due to the lack of the trade, there are no acceptance and consideration for the buyer's part. This can be seen in the case of Pharmaceutical Society of Great Britian v Boots Cash Chemists. The seller has the right to stop the purchase if the items are not suitable to be sold. If the buyers decided to buy it, and the seller accepts their payment or the offer, then it will be considered as against the new regulation. But as for the case above, Messy did not accept any payment or offer from anyone, therefore, it cannot be charged under the new regulation. There is no offer and acceptance in the case above.
In the case of Fisher v Bell, display of any goods with a price tag on it in a shop was not an offer but rather was an invitation to treat. Since it is just an invitation to treat, the Contracts Act 1950 might not applicable to this case. Messy has not done anything wrong that obey that law.

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