Question

Celeb café wanted to change some of its furniture. The manager, Macy, contracted Trend Furniture to enquire about the prices of tables and chairs. Trend Furniture faxed Macy a quotation for a sum of RM30,000 based on Macy’s selection of models. Upon receiving the fax, Macy called Trend Furniture and bargained the price to RM28,000. Trend Furniture replied that it would think about the matter and get back to Macy the next day. The same afternoon, Celeb café’s assistant manager, Neiman, obtained a better quotation from Aikia Furniture. The same models of furniture would only cost RM25,000. Macy planned to purchase the furniture from Aikia Furniture instead.

a) Explain who the ‘offeror’ and ‘offeree’ are in the situation above.

b) Could Macy purchase the furniture from Aikia Furniture? Justify your answer.

Answer 1

A. In the above situation, when trend furniture sent Celeb Café the quotation of 30,000 RM, then trend furniture is the offerer, and Celeb cafe is the offeree. When Macy negotiated for the price to RM 28000, Macy is the offerer, and trend furniture is the offeree.

Next, when Aikia furniture sent the quotation to the café, Aikia furniture is the offerer, and Café is the offeree.

B. Yes, Macy could purchase the furniture from Aikia furniture, since he has not signed the contract with the trend furniture. He was accepting the quotation prices of different sellers to select the best price for his deal. He is allowed to look for other options, and find another seller since he did not come under a legal agreement with any seller.

He just talked about the decrease in prices, which does not make him liable to come into a contract with the Trend furniture.

Moreover, even trend furniture has not accepted their offered to settle on RM 28000 so far. Thus, nobody can object if Macy takes the deal from Aikia furniture for Rm 25000.