Adam is the owner of a Tealive kiosk in iCity Mall, Shah Alam. He is no longer
Question:
Adam is the owner of a Tealive kiosk in iCity Mall, Shah Alam. He is no longer interested in operating the kiosk and wants to sell it at the price of RM25,000.000. He put an advertisement on Instagram about the sale of his kiosk. Adam received a number of PMs from people interested in buying his kiosk but end up accepting the offer made by Hawa as she is able to pay Adam in cash for the price of the kiosk. Hawa informed Adam that she will draw up a contract detailing all the terms of the sale. Two days later Adam received a copy of the contract from Hawa. One of the terms stated that Adam is prohibited from opening another Tealive/Chatime/Boost/other beverage kiosk in Shah Alam. Adam and Hawa both signed the contract. Two years later, Adam opened a new Tealive store in Section 7, Shah Alam. Hawa is angry when she heard about it and wants to sue Adam for breach of contract. Based on the facts;
determine the followings by referring to the Contracts Act 1950 and decided cases:-
a) Whether the advertisement put by Adam on his Instagram is an offer or an invitation to treat. Justify. (5 marks)
b) Whether the term stating that 'Adam is prohibited from opening another Tealive/Chatime/Boost/other beverage kiosk in Shah Alam' is a valid term. Would your answer differ if the term state that 'Adam is prohibited from opening another Tealive/Chatime/Boost/other beverage kiosk in Malaysia'. (7 marks)
c) What is the type of remedy that can be claimed by Hawa if she succeeded in suing Adam for breach of contract (3 marks)