Question

Harry, a keen collector of old cars has seen an advertisement for an auction of old cars in a weekend newspaper. He borrows RM20,000 from his wife, Sally with the promise that he will return the money once he able to sell one of his car collections later. He travelled to Kuala Lumpur from Alor Setar to attend the auction in order to bid for the model mentioned in the list of vehicles to be auctioned. However, when Harry arrived at the auction site, he found a notice outside the premise stating that the auction has been cancelled. Harry felt frustrated and had decided to use the money to modify his car with new sport rims which cost RM 17,000.

When he returns home, his wife was furious when she learnt that Harry had spent the money for the car accessories. His wife demand Harry to return the money immediately or else she will sue him for breach of agreement. Harry put the blame to the organizer of the auction event. He decided to file a legal action against the auctioneer for the cancelation of the auction.

In the context of law of contract, you are required to analyse the validity of the legal action taken by Sally and Harry in the above case by using IRAC method.

Answer 1

IRAC method emplies, issue, rule ,analysis and possible coclusion, in deciding any grivances btought to any court where breach of contract or other legal rights expressed or implied,  and possible remeadies are available through legal recourse.

even when there is no such definite remedies or charge codified then also the court of law have the discretion to provide remedies based on the corrective jurisprudential analysis or on tort.

ISSUE--

Harry borrow money from his wife, RM 20000/-

on the promis of performing ( buying an old car via auctioning event)

he did not perform the specific act as promised to his wife.

the same is because the organizer cancled the auctioning event.

harry performance was incumbant on the organisor of the event.

his wife want to sue for not performing the specified performance.

and he sued the organiser fro cancelling the eventt of auctioning.

RULE of contract-

element of contract- offer or proposal, consideration and acceptance of the offer, and thus formation of the agreement , and enforcieability of the agreement by law.

she offered the money on the promise to perform the specific duty against that money agreed upon by him

the element of contract ( offer to borrow, acceptance of the offer, and agreed upon so up to agreeing point seem that the contract has happened if it is enforceable by law. for specific performance.

nature of borrow (agreement) entered into was not an institutional but based on the faith and subjective cosideration by Harry's wife and Harry. so not strictly brought under the contract as it is more like a family matter and need to be solved amicabilly. and the final promise was to return the money.

as the performance of such consideration was incumbent on the perfomance by the auctioning organization. and so he didi not do the performance part but returning the money was not denied by him.  

  Analysis-

the fromation of contract between husband and wife is not a contract in an exact sense as it is, more a family transation based on faith and trust. and reach up to an agreement only. and also harry did not deny to return the money yet.

whereas the offer by the organiser was a general offer and canceled the bidding event on the day of the event, so harry had the option to sue the organisor for compensating for the traveling and for not organising the event as the event do not involve to be performed by only a specialist but alternate arrangement is possible.

Conclusion-

harry will hold the groung to sue the organiser for denying specific performance on the ground that general offer was made but cancellation was not published on the proper time in general so every one come to know about the cancellation   and thus cause problem to harry.

but his wife may not be able to sue Harry as they do not agreed uopn  the time so when to pay back and the agreement between close family members is not strictlly analysed on the groungs of contract .