SECTION B: SCENARIO BASED

BASED ON THE FOLLOWING SCENARIO, ANSWER THE QUESTIONS. EXPLAIN THE RELEVANT RULE THAT IS APPLICABLE FIRST BEFORE YOU APPLY THE RULE TO THE FACTS. (12 MARKS)

Ghani inherited a 1967 Volvo 122s from his late father, but he is not very interested in the car. One of his friends, Fuad came to know about the car and send a message to Ghani which read Will you sell your Volvo 122s to me? Please tell me the lowest price you are willing to accept. Ghani wrote a reply stating RM30,000 is the lowest price for the Volvo. Fuad responded to this by texting I agree to buy your Volvo 122s for RM30,000. Ghani did not read this message. When Fuad didnt receive any news from Ghani, he assumed that he had a contract for the sale of the car and went to Ghanis house to collect the car. Fuad was surprised when Ghani told him that he has sold the car to his next-door neighbor for RM40,000. Fuad wishes to sue Ghani claiming that they already have a contract. Advise Fuad whether he will be successful. (12 marks)

• State the Issue:
• Explain the Rule: (What are the relevant rule and case laws that are applicable for this case? Explain - 6 Marks)
• Apply and Conclude: (How do you apply the rules/cases stated above to the facts of the case given? - 6 Marks)