Question 2

(25 marks)

[Total: 25 Marks]

1. (a) Mrs.Aisyah has decided to start her own business, running a private day nursery. She must find the appropriate premises. She sees a detached house, which would be necessary, on the market for RM200,000. After having viewed the property, she decides to make a bid for the property for RM150,000. The sellers state clearly, however, that they will only accept RM180,000.

   Mrs. Aisyah then sees another property on the market for RM250,000. She offers the asking price for the second seller, and it was accepted as subject to contract. However, a week later, the sellers of the first property contact Mrs. Aisyah again stating that they have reconsidered and are now happy to accept her bid for RM150,000.

   Advise Mrs. Aisyah for her legal position under the law of contract. (10 marks)