LAW60104: On 14th February 2023, Peter advertised his BMW car which was actually worth RM80,000 for sale for RM66,000: Business Law Case Study, TU, Malaysia

University Taylor's University (TU)
Subject LAW60104: Business Law

On 14th February 2023, Peter advertised his BMW car which was actually worth RM80,000 for sale for RM66,000 in the Star newspaper. On 15th February, Tracy saw the advertisement and went over to Peter’s house with a  cheque for RM66,000 but Peter refused to accept the cheque without giving any valid reason.

Tracy thereafter told Peter that she would sue Peter for breach of contract. Also on 15th February, Dave wrote to Peter enclosing a cheque for RM66,000 saying that he would assume the car was his unless he heard to the contrary. On 16th February, Angel inspected the car and requested two days to make her decision. Angel asked Peter whether he could keep the offer open for her, to which Peter agreed in exchange for RM200.

The next day, Angel went over to Peter’s house with RM63,000 cash but Peter refused to accept the lesser sum. Peter requested Angel to increase the sum to RM65,000 to which Angel’s reply was the highest she could afford was RM64,000 and nothing more. Peter thereafter accepted Angel’s RM64,000 and allowed Angel to drive the car home.

Advise Peter on any possible contractual relationships he may have with Tracy, Dave, and Angel pursuant to the Contracts Act 1950. Make references to relevant cases laws and sections from the Contracts Act 1950.

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