Business Law
Question 1 Base on the case presented in this question, there is a valid promise between Tina and Yatie. According to Section 2a of Contract Act, when one person signifies to another his willingness to do or abstain from doing anything, with a view to obtain assent of the other to such act or abstinence, he is said to make a proposal. Apparently in the case that Yatie had made an offer or proposal to her business partner, Tina to supply handcrafts by sending an offer letter to Tina. Tina had received the offer letter in the next day and she had accepted the offer by asking her staff, Anis to fax a letter of acceptance as soon as possible to Yatie. According to Section 2b of Contract Act, a proposal when accepted becomes a promise. Therefore, when Tina had accepted the offer made by Yatie, a promise or agreement had begun between them. According to Section 2c of Contract Act, it says that a person making the proposal is called the promisor (offeror) and the person accepting the proposal is called the promisee (offeree). Thus, in the case above, the promisor or offeror was Yatie and the promisee or offeree was Tina. However, there is no appropriate communication of acceptance between Yatie and Tina as the general rule states that acceptance of a proposal must be communicated to the proposer in the prescribed manner. The offer letter was clearly stated that a written acceptance has to be given. If the acceptance made does not follow as per letter of offer, the proposer is entitled to insist on it, where Yatie had actually insisted to Tina that the acceptance to be made in writing. If Tina’s staff fails to follow the prescribed manner of acceptance, then there will not be a binding contract between them. However, Yatie had accepted the offer earlier from Tina verbally, before Anis made the call to confirm on the acceptance. The promise between the business partners is valid. The general rule for acceptance states that acceptance is effective or complete only when it is