FACULTY OF BUSINESS ADMINISTRATION

BACHELOR OF BUSINESS ADMINISTRATION (HONOURS) IN HUMAN RESOURCE

MANAGEMNT

BUSINESS LAW

LAW 416

INDIVIDUAL ASSIGNMENT

GROUP

NBH2C

PREPARED BY:

SALBIAH BINTI ABDUL JA’AFAR 2019161191

PREPARED FOR:

DR. CHE AUDAH BINTI HASSAN

SUBMISSION DATE:

04 JUNE 2022
 1. Explain the application of judicial binding precedents as one of the source of law and
its advantages.

In applying binding precedents, Malaysian Law can be found in the judicial decisions of the
High Court, Court of Appeal and the Federal Court and the then Supreme Court, Federal
Court and the Judicial Committee of the Privy Council. Decisions of these courts were made,
and still are being made, systematically using what is called the ‘doctrine of binding judicial
precedent.

In the case of binding precedent, each court is bound by the decision of the court of the
same level or higher that it in the same hierarchy of the courts, whether it believes a decision
is correct. Judges do not decide cases arbitrarily. They follow certain accepted principles
commonly knowns as precedents.

If a judge applies an existing rule of law without extending it, his decision may be called a
declaratory precedent whereas if the case before him is without precedent, then the decision
made by him may be called an original precedent. In this way, judges are constantly
contributing to the growth of unwritten law in this country. The system of binding judicial
precedent is called stare decisis means keep to decisions. The doctrine of stare decisis
means that in cases where the material facts are the same, a court must follow the prior
decisions of a higher court and in some cases, it must follow its own prior decisions and prior
decisions of a court of the same level whether past or present, in the same hierarchy.

The advantages of binding precedent are a Consistency. This refer to the fact ‘like case will
be treated alike and are not subject to the whims and fancies of individual judges. Next is,
Certainty where lawyers and their clients are able to predict what the outcome of particular
legal question is likely to be in the light of previous judicial decisions. Precision also the
advantages of a binding precedent whereas the principles of law are set out in actual cases
the law become very precise. Next is a flexibility where law need to be flexible to meet the
neds of the over changing society and cases law can make changes faster than parliament.
There is various mechanism by means of which judges can manipulate the common
provided with an opportunity to develop law in particular areas without waiting for parliament
to enact legislation. Example, is the case of Airedale NHS Trust vs Bland (1993) on the
question of whether a life support machine should be switched off when a person was in
persistent vegetable stated. Although it will contravene the Human Right Act (the right to
live), the Houses of Lord allowed the termination. Lastly is Detailed rules. Case laws respond
to real situations, whereas the case laws show detailed application of law to various
circumstances, and are more informative than status which are basically theory and logiest.
 2. Hafiz, aged 17, is a 1 semester student at UITM Segamat. He comes from a rich
family. Having a disciplinary problem, he was expelled from Kolej Simanja Kini and
has to stay at Jementah. Hafiz decided to purchase a motorcycle from Hassan on
Credit. Hafiz travels to and from the UITM Segamat and took his girlfriend, Molek, for
many joyful rides. During one these occasions, he promised to marry her. The
exchange rings with one another. When Hassan confronted Hafiz to pay for the
motorcycle, Hafiz refused to pay. Thereupon Hassan sued Hafiz for the sum of
RM2500. Meanwhile, Molek also drags Hafiz to the court for breach of promise of
marriage and claims for damages and return of the gifts.

Contract is an understanding that leads to lawfully adhering and lawfully enforceable

between both parties. It is important to understand the significance of “contracts”, without an
understanding which lawfully binds and enforced, there would be no concern. In Malaysia,
there is contract jurisprudence in a legislative act, the Contracts Act, 1950. There are several
elements of organizing contract, which are offer, credence, the purposes to make legal
dealings, consideration, capacity and certainty.

Harmonizing to (Abbott, Pendleburry & A; Wardman ) , capacity refers to the power to come
in into any contract they wish. In Section 11 of Contracts Act 1950, every individual is
competent to adhering a contract, when that specific individual is in the age of bulk, of sound
head, and is non disqualified from undertaking in jurisprudence antecedent. But, for some
peculiar group of single, there is no capacity of come inning into a contract for them, this
peculiar group are bush leagues, mentally sick or inebriation and besides corporations.

Applying the principles above to the facts in question, it is submitted that there is no binding
contract between Hafiz and Hassan because the communication of acceptance is deemed to
be made by any act of the party by which he intends to communicate acceptance. Therefore,
mere intention to accept without communicating the acceptance to the offered does not give
rise to a valid and binding contract.

This presumption that the parties, do not intend legal consequence was rebutted the case of
Rajeswary & Anor v Balakrishnan & ors(1998). A promise of marriage entered into by minor
between Hafiz and Molek. The agreement was entered into with provisions for dowry and
penalty for breach. Then, the promises to marry is repudiated. The plaintiff sued for breach
of promise to marry. The defendant pleaded that since the plaintiff is a minor then the
agreement is void.

Furthermore, marriage contracts entered into by minors was valid. Since one of the parties
breach the contract, the other party has the right to sue. In this case, Mohori Bibee’s
principle cannot be applied because Mohori Bibee’s was a commercial agreement and
custom of the community must be considered. Section10 of the act provides that ‘any
marriage purported to be solemnized in Malaysia shall be void if at the date of the marriage
either party is under age of 18 years old’. However, there is a provision for female who has
completed her 16th year apply for a license granted by the Chief Minister under section 21(2)
of the act.

For commercial agreements, between Hafiz and Hassan the law presumed that ‘common
intention’ exist between the parties. The parties have intention to create legally binding
relationship under the agreement. Therefore, the contract is valid and binding on the parties.