In the case of MN Guha Majumder v RE Donough [1974] 2 MLJ 114 , the court had hold that the sale of house through an advertisement in the newspaper is amount to invitation to treat; and in case of Eckhardt Marine GMBH v Sheriff, the court of appeal hold that an advertisement for the sale of a motor vessel by a sheriff was an invitation to treat and not an offer.
By supported of the above authorities, such advertisement made by Ah Chong is an invitation to treat, not an offer. Therefore, although Muthu accepted the purchase price of the car for RM 30,000.00 by calling Ah Chong directly, there is not contract form between Muthu and Ah Chong. By calling Ah Chong, Muthu is merely making an offer to Ah Chong, and it is depends on Ah Chong to accept the offer or refuse it.
Such communication of Muthu via calling Ah Chong is amount to instantaneous communications. Communication of offer made by Muthu is complete when such communication come into knowledge of Ah Chong (S. 4(1) and S. 4(2)(a) of the Act). By calling Ah Chong, communication of offer by Muthu is completed, and now its depends on Ah Chong to accept the offer; if Ah Chong wants to accept the offer, Ah Chong should communicate such acceptance to Muthu according to S. 4 of the Act.