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Excellent Vehicle Bhd, a motor vehicle service provider has a 24-month agreement to provide Amir, its customer, with car services for which Amir pay RM300 per month. The agreement does not include any provisions for automatic extensions, and it expires on 31 December 2018. Excellent Vehicle and Amir sign a new agreement on 1 February that require the customer to pay RM350 per month in fees, retroactive to 1 January 2019.
The customer continued to pay RM300 per month during January 2019 and the service provider continued to provide services during the period. There is no performance issue being disputed between the parties in the expired period, only the negotiation of rates under the new contract.
Required:
Problem 1: Does the contract exist in January 2019 (prior to the new agreement being signed)?
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