MULTIMEDIA 'o UNIVERSITY STUDENT IDENTIFICATION NO MULTIMEDIA UNIVERSITY FINAL EXAMINATION ‘TRIMESTER 1, 2014/2015 SESSION UNL 1612 —- CONTRACT LAW I (All Sections/Groups) 22 SEPTEMBER 2014 Reading Time: 9.00 a.m.—9.15 a.m. (15 Minutes) Answering Time : 9.15 am.— 12.15 p.m. (3 Hours) INSTRUCTIONS TO STUDENTS 1. Students will have fifteen minutes during which they may read the paper and make rough notes. ONLY in their question paper. Students then have the remaining THREE HOURS in which to answer the question. 2. This Question paper consists of 5 pages and 5 Questions only. 3. Answer FOUR (4) Questions Only. 4. Students are allowed to bring into the Examination Hall CLEAN and ORIGINAL copies of: i. Contracts Act 1950 (Act 136) ii. Spe Relief Act 1950 (Act 137 ) iii, Civil Law Act 1956 (Act 67) 5. Please write all your answers in the Answer Booklet provided.UNL CONTRACT LAWL 22 SEPTEMBER 2014 QUESTION 1 (2) “A contract is not made until acceptance is actually communicated to the proposer”. Do you agree with the statement? Support your answer with reference to the Contracts Act 1950 and decided cases. (15 Marks) (b) On 1 September 2013, Joni who lives in Kulai, Johor wrote to Dani who works in Setapak, Kuala Lumpur offering to sell his Honda Accord for RM25,000/- to be accepted by 5 September 2013. On 3 September 2013, Joni sold the car to Cari and sent a letter to Dani revoking his proposal. On 6 September 2013, Dani telephoned Joni accepting the proposal but Joni told him that he had already sold his car. Advise Dani. (10 Marks) (Total: 25 Marks) Continued... MIARALILAN vsUNLI6I2 CCONTRACTLAW! 2 SEPTEMBER 2014 QUESTION 2 (@) “Consideration must be sufficient but need not be adequate”. Explain this statement with reference to the Contracts Act 1950 and decided cases. (15 Marks) (b) Anita went on a business trip to Beijing. She requested her servant Bibik to look after the house during her absence. A few days later, Bibik received a notice from the Income Tax Department wherein it was stated that Anita had to pay the Income Tax Department the amount of RM2,000/- within a week and that failure to clear the tax payment would entail a fine or prosecution, Bibik withdrew her saving of RM2,000/- and paid the income tax. Anita returned home and promised Bibik that she would pay the RM2000/-, Anita now refuses to pay and gives a lot of excuses. Bibik plans to sue Anita on the promise. Advise Bibik. (10 Marks) (Total: 25 Marks) Continued... ‘MIAHALILAH WsUNLI6I2 CONTRACTLAW1 22 SEPTEMBER 2014 QUESTION 3 @ “ (b) “In our view there is a growing body of authority which supports the proposition that a collateral agreement can exist side by side with the main agreement which it contradicts.” Per Raja Azlan Shah CJ in Tan Swee Hoe Co. Lid. v Ali Hussain Bros [1980] 2 MLJ 16. Discuss the above statement and support your answer with the relevant statutory provisions and decided cases. (15 Marks) Iman bought a commercial oven for her bakery business to bake three hundred cakes at a time from Anita. Iman had expressly made known before purchasing the oven that it should reach a temperature of at least 2,000°Fahrenheit. Her cakes did not cook well, when the oven did not reach the requisite temperature. Iman filed a suit against Anita claiming for repudiation of the contract and also damages. Advise Iman, (10 Marks) (Total: 25 Marks) Continued... vsUNLI6}2 CONTRACT LAW 22 SEPTEMBER 2014, QUESTION 4 (@) “If mistake operates at all, it operates so as to negative or in some cases to nullify consent” per Lord Atkin in Bell v Lever Bros Ltd 1931] All ER 1. Explain the above proposition. Does Malaysian contract law recognise this proposition? Support your answer with relevant statutory provisions and decided cases. (15 Marks) (b) Ali who has been in occupation of a land under Temporary Occupation License agrees to sell the land to David for RM100,000/-. The agreement provided, inter alia, that David shall occupy the land on payment of 10% of the purchase price. Ali would ‘execute a valid transfer of the land as soon as the titles were issued by the State Land Authority. However, the State Land Authority refuses to issue the titles to the land. Meanwhile, David had paid the amount stipulated in the agreement and had taken possession of the land. David now claims for the return of the money. Ali contends that since the agreement is illegal and void, no action can be maintained against him and that the money paid by David cannot be refunded. Advise David. (10 Marks) (Total: 25 Marks) Continued... ‘MIAHDALILAH wsUNLIGIZ CONTRACTLAW 1 22 SEPTEMBER 2014 QUESTION § (@) Discuss the various ingenious devices developed by the courts to contain the mischief of exclusionary clauses usually incorporated in standard contract. Support your answer with decided cases. (15 Marks) (b) Isaac bought a Chevy car from Niza Motors in November 2012 which offers a 5 Year Warranty on parts. Six months after the purchase of the car, Isaac installed an NGV kit to the car. After using the ear for a year, while driving the car would lose speed suddenly. When Isaac sent the car to the service centre for repair, he was told by the foremen that the car’s gearbox had malfunctioned and needed to be replaced. Isaac ‘was asked to pay for its replacement. Isaac is unhappy and wants to know what his rights against Niza Motors are. Advise Isaac. (10 Marks) (Total: 25 Marks) End of Page ‘MIAHALILAN ¥5