TUNKU ABDUL RAHMAN UNIVERSIYTY COLLEGE

BBBL2113 INVESTMENT INDUSTRY LAW

TUTORIAL 3:

VITIATING FACTORS, TERMS, DISCHARGE & REMEDIES

1. Mdm Old is 80 years old. Last month Mdm Old was hospitalised at Boleh Hospital for
two weeks. During her stay in the hospital, she became very close to one Dr. Strong
because he took care of her. Mdm Old agreed to sell her house to Dr. Strong for RM
100,000 and deposit of 1% is paid as part purchase price. The market value of Mdm
Old’s house is RM2,000,000 easily.

Mdm Old’s daughter came to know about the transaction and told her mother not to
proceed with the agreement. Mdm Old is worried that Dr. Strong will sue her. Mother and
daughter come to see you and seek your advice. Advise them and limit it to vitiating
factor of undue influence.

2. Ben agreed to buy an antique clock from Janet which he had seen in Janet’s house.
Before the day of the agreement was made, neither Ben nor Janet was aware that the
antique clock had already been destroyed in a fire at Janet’s house. Discuss.

3. Ben, an Indian national contracted to purchase Sue’s racing horse which he saw in her
ranch. After the contract been signed and the price of the horse paid, but before delivery
of the horse to Ben in India, the Malaysian government introduces a legislation
preventing horses from Malaysia to be exported. Discuss.

4. Where there is breach of contract, the party seeking damages is under a duty to mitigate
the loss Explain the phrase “mitigate the loss”.

5. X Sdn Bhd and Mr Y have entered into a contract. Advise Mr Y as to three remedies
available to him in the event X Sdn Bhd breaches the contract.

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