Law of Contract

Assessment (LW213)

Question.Please write a brief case review for the case of Preston Corporation Sdn Bhd vEdward Leong and Ors [1982] 2 MLJ 22. The basic format of the case review should include an introduction, salient facts of the case, judgement of the court and the principle of law applied by the court to reach its decision. Students are encouraged to critically comment on the judgement of the court by indicating whether the decision made was correct or otherwise, and such comments must be substantiated by legal reasoning.

Question.Philip receives an advertisement by email from CostPlus Ltd which states: 'We can offer "state of the art" accountancy software for small businesses at a price guaranteed not exceeding RM2500'. He immediately telephones CostPlus and places an order. However, after discussing the matter further with the CostPlus representative, it becomes apparent that the actual cost of installation would exceed RM4000. Philip, therefore, withdraws his order.

Next day, Philip telephones TectMech. He leaves a message on the answering machine accepting the offer of RM3000 made by Margaret, the Managing Director ofTectMech and at the same time asking whether the cost will include on-site training for any new staff he employs over the next six months. Subsequently, Philip has second thoughts and telephones TechMech to cancel his order. The secretary, now on duty, points out that she has passed all the answering service tapes over to Margaret who would be listening to them shortly but she would make her note of his wishes.