a) On 1 May 20121, Amin Trading Sdn. Bhd. (Amin) has an agreement to deliver 250 units of cordless vacuum cleaner to Dibea Sdn. Bhd. (Dibea) by 31 August 2021. Based on the agreement, Amin can terminate the agreement any time before 31 August 2021 without having to pay any compensation to Dibea on non-delivery of the product. Explain whether there is any contract that exists between Amin and Dibea
(a) On 1 May 20121, Amin Trading Sdn. Bhd. (Amin) has an agreement to deliver 250 units of
cordless vacuum cleaner to Dibea Sdn. Bhd. (Dibea) by 31 August 2021. Based on the
agreement, Amin can terminate the agreement any time before 31 August 2021 without having
to pay any compensation to Dibea on non-delivery of the product.
Explain whether there is any contract that exists between Amin and Dibea.
(b) Jabra Sdn. Bhd. (Jabra) has entered into two contracts with Poco Sdn. Bhd. (Poco). Under the
first contract, Jabra is to deliver bricks for RM90,000 and the second contract is to build a TNB
sub-station for RM40,000 at Poco’s project site.
Explain whether the above two contracts should be accounted for as a single contract in the
books of Jabra.
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