marmmon QQ) smnenery more mracmonyo ji MULTIMEDIA UNIVERSITY FINAL EXAMINATION ‘TRIMESTER 1, 2016/2017 UNL 1612 - CONTRACT LAW 1 (All Sestons/Groups) 18 OCTOBER 2016, Reading Time 9,00 azm,—9.15 am. (15 Minutes) Answering Time :915 am. ~ 12.15 pam, (Hours) INSTRUCTIONS TO STUDENTS 1, Students will have fifteen minutes during which they rea the paper and make rough notes ONLY om their question paper. Students then have the remining THREE HOURS in which to answer the question. 2. This Question paper consists of § Pages and Questions only 3. Answer FOUR (4) Questions Only. 4, Students are allowed to bring ino the examination ball CLEAN and ORIGINAL copy of [.Contracts Act 1950 (Act 136) Students are no allowed to lend or borrow statutes) during the examination 5. Please writ all your answers inthe Answer Booklet provided.QUESTION 1 (@) Anolfer should he made witha view to obtain the assent ofthe offre eo at to be Jegily bound on acceptance; or else it would be treated as an invitation to tet Discuss with te support from statutory provisions and decided cases. (15 Mirks) e Situ Bhd, offered 1000 shares at RM 100/- por share to Becea on 15th July 2015 Becca wanted to buy all he $000 shares, but di aot have enough money to purchase ‘them, So she offered to buy the 5000 sheres st RM 90- per share on 20th July 2015 Situ Bhd refused wo sell at that rat, (On 22nd July 2015, Becca by luck won a lotery daw of RM200,000(~, She was ‘overjoyed because with the prize money she could afford to buy the shares. She ‘contacted Situ Bhd. and told them that she accepted Situ Bhs offer of 1Sth July 2015 and requested for the share certificate tobe issued in her name, However, Situ ‘Bhd, infirmed her thatthe company was unable to sell the shares to her as it was already sold to another buyer on 21st Jly 2015, Becca fled an action agaist Situ ‘Bhd. for breach of agreement, Advise Bocca (10 Marks) (Tota: 25 Marks) Continued...(8) In Choo Tiong Hin & Ors ¥ Choo Hock Swee (1959) 25 MLI 67, CA Singepore, Whatt CS stated ‘an agreement isnot a contact in the stict sense ofthe word, unless tis the common intention of the parties that it shall be legally enforceable, Such an Intention is normally infeed from the nature ofthe agreement, For instance, in ‘the case of agreements regulating commerce for busines, itis obvious that the erties intend legal consequences to follow; per contra, in the case of ‘agreements relating to socil engagement, itis infeed as matter ofcourse that there is no common intention to creat legal obligations, Diseuss the above statement and suppert your answer with relevant statuary rovisions and decided case, (1SMarks) (©) Samy and his wife, Geeta mutually agreed to separate, Thereafter, Samy exccuted | written and registered sgreement where he promised that during the seperation period he would pay Geetha a monthly maintenance allowance of RM2000, The sgrecment stated that there had been inwconciable quarrels between Samy and Geetha asa result of which they had volunarily agred to separate. Upon separation Samy refused to honour the agreement made, Geetha wants to sue Samy to enforce the promise. Advise Geetha, (10 Marks) (Total: 25 Mas) Continued, ee eSsSeSeSeSSSSSSSeSSSSS seaman vs(@ Ie Punca Kiasit Sdn Bh» Fok Chong & Sone Sh Bhd & Ors (1598) 1 CLI 601, CA, the Cour of Appeal stated as follows: ‘The doctrine of privity of contact is wellknown. It provides hat only partes to a contract can enjoy the benefits ofthat contactor safer the ‘burdens of it. Consideration must flow from the promisce; 1 person ‘cannot simply sue on a contract if the consideration is provided by ‘another even where th contact is made Zr his benef ‘Analyze the above statement in relation tothe law on privity of contact in Malaysia ‘and England with decided cass, (ISM) () Saran, minor, borowed a loan of RM 15,000/- ix January 2015 from Fiona by executing a promissory note, He stated that he was 21 years of age end was fully ‘competent to enter into the agreement. Saran then promised Rek, 16 years of age, that he would marry het as soon a be returned fom Europe after watching the Euro Football Championships June 2015. Saren went to Europe and returned to Malaysia afer having spent all the money he hed borrowed from Fiona. Both Fiona and Rek sued Saran to enforce ther rights, ic, Flona on the promissory note and Rek forthe ‘reach of promise to marry. Advise the parties, (10 Marks) (Tal: 25 Masks) Continue, aaa wewai commactiaw crear (@) Discuss the recent developments in relation to the doctrine of Promissory Estopel What are the effects ofthese developments on the following features of equitable octrne? Support your answer with decided ease. (1s Marks) (b)_ Peter leases from Lee a big hull which has been previously used asa warehouse at @ ‘monthly ret of RMIOOO!- for 3 years. Before the contract was concluded Peter had told Lee thet he wanted to use the said hall as aa iterational trade exhibition hall He also enquired from Lee as to how many trade booth the hall can accommodates, Le replied: “as many as 500 booths.” Peter found Ieter that only 300 booths could be fomsircted atone time in the hall. Peter wante to repudiate the contract a well 68 claim damages. Advise Peter, (10 Marks) (Tota: 25 Mas) Continued... aun wscommactiw ocronsnan6 ‘QuEsTION s (®) No consideration is required in case of agreements made on account of natural love sand affection. Nevertheless, there are certain requirements, which need to be strictly complied with before such agreements can stand the test in law. Discuss the above statement with the help of statutory provisions and support your answer with decided eases. (15 Marks) () John bought recondition car for his wife fom Smith, the car salesman from Sports ‘Motors on the 20* November 2014, Smith had astured Job of the excellent gulity ofthe car tobe delivered to him on 30* November 2014, The ear was delivered to ‘John’s house in PS on the stipulate date and was received by his wif, while he was vay in Penang attending a conference, However, when he retumed home two weeks later, after the delivery ofthe car, he found tha the car could not start. The exe of the ‘car was broken and the gear did not function wel, Jon roqusted to Smith thatthe «car be replaced with another cr, Smith refused and tld him that his company would replace the defective parts only when they became available on the 30° of December 2014, Advise John, (10 Macks) (Total: 25 Macks) End of Page