SUBJECT NO 03C

INTRODUCTION TO MALAYSIAN LAW

JUNE 2003

SIX questions only to be attempted. All questions carry equal marks.

Wednesday morning 4 June 2003 Time allowed: 3

hours

1. In relation to the law of contract, compare and contrast the following:

(i) invitation to treat;

(ii) offer;
(iii) counter-offer; and
(iv) option.

2. (a) "Negligence is the omission to do something which a reasonable man,

guided upon those considerations which ordinarily regulate the conduct of
human affairs, would do, or doing something which a prudent and
reasonable man would not do." Blyth v. Birmingham Waterworks Co.,
(1856) 11 Ex. 781, 784.

In relation to the law of tort, explain the term 'reasonable man'.

(b) In relation to the law of tort, explain the term 'tortious liability'.

(c) The test for the existence of a duty owed to the plaintiff is the 'neighbour'
principle stated by Lord Atkin in Donoghue v. Stevenson (1932) A.C. 562,
580.

In relation to the law of tort, explain this 'neighbour' principle.

(d) Company Secretaries, as professionals, may incur legal liability for

professional negligence, which arises when there has been a breach of
duty of care owed to some persons.

Identify the three ways in which a duty of care may arise for Company
Secretaries.

3. Ken, Ranjeet and Lee were friends and classmates in information and
technology school. After gaining the necessary experience and acquiring
business contacts, they formed a partnership called "Kenjeetlee Partnership
LLP" to last for five years. The partnership has not performed well for the last
two years. Ken has now decided to emigrate to Mauritius this year. Lee is
happily married with her career taking second priority, while Ranjeet just
received a bankruptcy notice served against her.

All the three partners decided to dissolve "Kenjeetlee Partnership LLP"

Describe the various ways in which "Kenjeetlee Partnership LLP" may be

dissolved.

4. (a) What is the main difference between a void and a voidable contract?
 (b) In relation to the law of contract, explain what is meant by 'privity of
contract'.

5. English law forms part of the laws of Malaysia. English law can be found, inter
alia, in the English common law and rules of equity. However, not all of
England's common law and rules of equity form part of Malaysian law.

Discuss the extent to which English common law is applied in Malaysia today.

6. (a) State the similarities and differences between 'legislation' and 'subsidiary
legislation'.

(b) Describe the constitution, powers and jurisdiction of the High Court of
Malaysia.

7. (a) One of the major sources of Corporation law in Malaysia is written law.

Describe what is 'written law'.

(b) The functioning of the system of judicial precedent is based on the

hierarchy of decisions and inevitably the hierarchy of courts.

(i) What does 'judicial precedent' mean?

(ii) Briefly, with the aid of a diagram, describe the present hierarchy of the
courts in Malaysia.

8. KC ZEN Commercial Bank Malaysia Berhad is a licensed bank. Fiza had

borrowed money from the bank secured over a bungalow house built on a piece
of freehold land located in Kajang Heights, Kuala Lumpur. Advise Fiza of her
rights and the bank's rights should she fail to repay the loan as and when it
becomes due.

9. Astro Bank Berhad is the registered chargee of a piece of land measuring five
acres, in the Kuala Lumpur Centre Business District, which is owned by CoCo
Sdn Bhd. Therefore, under the National Land Code, Astro Bank Berhad's charge
is indefeasible. State and explain the five exceptions to this indefeasibility.

10. Write short notes on the following:

(a) The borrowing powers of a company.

(b) State the legal principle in company law established by the case of
Salomon v. Salomon & Co. Ltd. (1897) AC 22

(c) State three main differences between a sole-proprietorship and a

company.