Course Law of Contract II

Semester October 2021 – February 2022 (20214)

Course Code LAW486
Assessment 3 Quiz
Submission 28th January 2022, 12 p.m.

Instructions to candidate:

1. This question paper consists of 3 questions.

2. This group assessment would amount to 20% of the Continuous Assessment
Marks (CAM).
3. Ensure that the maximum page for this assessment is 8 pages.
4. Please save the answer file using class + group members names, in PDF
format.
E.g.: LWB02A Nur Syafiqah Mohd Hakim and Siti Saleha
5. Please submit the answer file according to your tutor:
LWB02A Mr. Mu’iz Email at muizlaw486@gmail.com
LWB02B Mr. Mu’iz Email at muizlaw486@gmail.com
LWB02C Mr. Mu’iz Email at muizlaw486@gmail.com
LWB02D Dr. Anida Google Classroom
LWB02E Dr. Anida Google Classroom
LWB02F Dr. Anida Google Classroom
Question 1 (10 marks)

Recently, Osman decided to sell his land to Kim Seng. The agreed purchase price
was RM400,000. Without referring to any legal practitioner, Kim Seng paid a deposit
of RM40,000 and within a month, Kim Seng made a full settlement of the purchase
price to Osman. Subsequently, when the document of transfer was forwarded to the
Land Administrator for attestation, both Osman and Kim Seng were informed that
under the law, Malay Reservation Land could not be sold, transferred or assigned to
a non-Malay and no registration of transfer could be affected for this purpose. Kim
Seng was not aware of the restriction and wants to claim the return of his money.
Unfortunately, Osman refused to do so on the ground that he has good intention to
sell the land to Kim Seng.

Advise both Osman and Kim Seng on their rights and liabilities.

Question 2 (5 marks)
With specific reference to Kepong Prospecting Ltd v Schmidt [1968] 1 MLJ 170,
briefly explain the application of the doctrine of privity in Malaysia.

Question 3 (5 marks)
Briefly discuss the case of The Golf Cheque Book Sdn Bhd v Nilai Springs Bhd
[2006] 1 MLJ 554. The basic format of the discussion should include an introduction,
salient facts of the case, judgement of the court and the principle of law applied by the
court to reach its decision. Students are encouraged to critically comment on the
judgement of the court by indicating whether the decision made was correct or
otherwise, and such comments must be substantiated by legal reasoning.