Definition of offer

An offer is an explicit proposal to contract on certain terms, made with intention that it shall
become binding as soon as it is accepted by the person to whom it addressed as in Contracts Act
1950, Section 2(a) and Section 2 (b).
Section 2(a) Contract Act 1950 defines an offer to be "when one person signifies to another his
willingness to do or to abstain from doing anything, with a view to obtaining the assent of that
other to the act or abstinence, he is said to make a proposal." In other words, an offer is an
indication to be legally bound under definite and prescribed terms.

Section 2(b) Contract Act 1950 defines an offer to be when the person to whom the proposal is
made signifies his assent thereto, the proposal is said to be accepted: a proposal, when accepted,
becomes a promise
For an offer to be valid, there must be an offerer (the person that making offer) and offeree (the
person that accept the offer) as in Contracts Act 1950, Section 2(c). If any of the party is missed,
the agreement will be void (Case: Affin Credit (Malaysia) Sdn Bhd v Yap Yuen Fui [1984] 1
MLJ 169).
Section 2(c) Contract Act 1950 defines an offer to be the person making the proposal is called
the promisor and the person accepting the proposal is called the promisee
Case: Affin Credit (Malaysia) Sdn Bhd v Yap Yuen Fui [1984] 1 MLJ 169).
Fact: In this case the appellant had let a motor car to the respondent under a hire-purchase
agreement dated August 14, 1980. The respondent fell into arrears with the payment and the
motorcar was repossessed and sold by the plaintiff for the sum of RM12000.00. The appellant
brought and action for the balance outstanding under the hire-purchase agreement for the sum of
RM13147.97. The respondent denied the whole claim and sought the protection of the HirePurchase Act, 1967. He alleged that the appellant had
a) failed to comply with section 4(1) of the Act by failing to give him a written agreement
consisting of a summary of his financial obligations under the proposed hire-purchase
agreement as set out in Second Schedule to the Act,
b) failed to supply him with a copy of the hire-purchase agreement within fourteen days of
its execution, an obligation imposed under Section 5(1) of the Act.
Held:
The President of the Session Court found that both the provisions of Section 4(1) and 5(1) of the
Act had been breached and he dismissed the claim.
On appeal, Abdul Razak J. was inclined to agree with the appellant that on evidence there was in
fact had complied with the provision of section 5(1), but had violated section 4(1) by the plaintiff

for failure to serve the statement in the second schedule on the defendant before the hirepurchase agreement was entered. Therefore, appellant had failed to prove that it had entered into
a valid and proper agreement with the respondent. He therefore dismissed the appellants claims.

An offer must be communicated. Section 4(1) Contract Act 1950 states that the communication
of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Section 3 Contract Act 1950 states that a proposal can be expressed or implied.

Definition of Invitation to Treat

An invitation to treat is an invitation to make an offer. It is not an offer but is an indication of
person`s willingness to negotiate a contract. So it is a pre-offer communication. An Invitation to
Treat can be show through advertisements, display of goods, tenders and auctions.
The following will be the case of invitation to treat:

Advertisement
Case: Partridge v Crittenden (1968)
Facts: appellant had inserted in a periodical entitled Cage and Aviary Birds a notice
Bramble finch cocks and hens, 25s each. It appeared under the general heading of
Classified Advertisement and the words offer for sale was not used. He was charged
with unlawfully offering for sale a wild live bird contrary to the provision of the
Protection of Birds Act 1954 and was convicted. He appealed.
Held (by Lord Parker) quashing the conviction: when one is dealing with advertisements
and circulars, unless they indeed come from manufacturers, there is business sense in
their being construed as invitations to treat and not offers for sale.
Display of goods