Name : KADEK NOVIA KARISMAYANTHI

Matric No. : 012022090842

Program : BIA (Bachelor in Accountancy (Honours))
Examination : September 2022
Subject : ALW20103 - Commercial Law
Date & Time : 02 Nov 2022 04:00 PM - 06:00 PM

Part A Question 1
Danish is a bright and intelligent student. Following the completion of his SPM, he was offered a
scholarship to pursue his studies further in Sydney, Australia. As the only child of Mr. John and
Mrs. John, he has truly made them proud. His parents offered to buy an apartment in Sydney if
he obtained distinction in his 1st year at Sydney University which he did. He claims the gift that
his parents had promised him. Due to their financial difficulties, Mr. John and Mrs. John were
unable to keep their promise. Danish wants to sue his parents for breach of promise.
Advise Danish if there is an intention to create legal relation in this case. Support your answer
with relevant provision and case law.
Answer :
Fact : Danish is going to college on a scholarship to Sydney and her parents promise and give
gifts by buying Danish an apartment in Sydney. but Danish's parents are having financial
difficulties so they don't buy an apartment by not buying an apartment according to the initial
agreement said by Danish's parents.

Held : offers can be communicated, with danish parents communicating with danish that for now
they are breaking their agreement due to financial difficulties. but later when you have enough
finances you can collect the gifts offered by your parents.

Part B Question 1
Jenny advertised for sale a number of live wild birds for sale, stating that the price was to be 25
shillings for each. Under the Protection of Birds Act 1954, it was unlawful to offer for sale any
wild live bird. The Royal Society for the Prevention of Cruelty to Animals (RSPCA) brought a
prosecution against the defendant under the Act.
Advise Jenny whether mere advertisement can be considered as an offer or invitation to treat?
Answer :
Fact : Jenny wants to sell wild birds. but it turns out that the animal is protected by the RSPCA

Held : what Jenny has to do is offer illegally. so the invitation to treat will be rejected. because
only legal ones can be accepted

Part B Question 2

Before Mr Harry died he wished for his wife to have the house they lived in for the rest of her
life. However, this was not written in his will. After he died, his executors, ‘in consideration of
such promise’, agreed with Mrs Harry that she would pay a peppercorn rent of £1 per year in
return for being allowed to live in the house.

Discuss whether Mrs Harry rental payment of £1 per year is a good consideration. Support your
arguments with legal principles and law cases.

Answer :

Agreement needs consideration if not it will be void. consideration has to be written to accepted
by the law. because Mr Harry died without written his will executor made a peppercorn rent for
Mrs Harry that will be that will give a promise to live in that house. so its definitely a good
consideration for Mrs Harry that only pay 1 euro each year to live in that house.

its nearly same to the case of re tan soh sim

legal principles; that consideration is the price paid due to promisor's promise;That consideration
must be something valuable in the eyes of the law. However, the value does not have to equal the
promisor’s promise

Part B Question 3

Lisa is an artist under BRU Recording has signed a contract with the company for three years.
During terms of the contract, she is restricted from performing any show under the management
of TRU Production, the rival company to BRU Recording.

One day, she was approached by the TRU Production to host a television show with a huge pay.
She concluded a contract with the TRU Production. Later, BRU Recording having known of this
matter had cancelled their contract with Lisa just after four months. Lisa then claims for damages
for the remaining terms of her contract with the BRU Recording and argues that the term
restraining her to work with another company is void.

Advise Lisa whether she is entitle to claim for damages for void contract.

Answer :

In this issue, Lisa has the right to claim compensation for her canceled contract with BRU
Recording

In the section 38 (1)

In the section 56 (1-2)

In the section 41

Section 63

Part B Questions 4

Section 11 of the Contracts Act 1950 provides that “every person is competent to contract who is
of the age of majority to the law to which he is subject, and who is of sound mind, and is not
disqualified by any law to which he is subjected”. The Age of Majority Act 1974 further explains
that age of majority in Malaysia is 18 years old. Therefore, person under the age of 18 is not
allowed to enter into a contract.

Discuss FOUR (4) exceptions to the general rule that underage person is prohibited from
entering a contract.

Answer :

Part B Questions 5

William hired out a Royal Festival Hall in London from Harry for the purpose of holding four
grand concerts. William went to great expense and effort in organising the concerts. However, a
week before the first concert was due to take place the Royal Festival Hall was destroyed by an
accidental fire. William sought to bring an action against Harry for breach of contract for failing
to provide the hall and claiming damages for the expenses incurred.

Advise Harry in this regards. Support your answer with relevant provision and case law.
Answer :

This final part of a four part series on practical contract law considers remedies for breach of
contract.

Many commercial agreements contain express provisions forremedies. For example, in a contract
for the sale of goods, thebuyer may be entitled to require the seller to make good orreplace
defective items. There may be a presumption (which may beexpressed in the contract) that all the
terms which are to governtheir contractual relationship have been included by the partiesin
express written form in the contract itself. In doing so theyintended to displace any rights and
remedies provided by law (such as the buyer's right to terminate the contract forfundamental
breach) which are not specified in the contract.

The purpose of a cumulative remedies clause is to ensure thatthe parties' rights specifically
provided for in the agreementare in addition to their rights provided by the general law(see inset
box "Cumulative remedies clause"). Anyparticular remedy that a party envisages it may need
should bespecifically preserved in the contract

Damages
Unlike the equitable remedies of specific performance andinjunction (see "Specific performance"
and "Injunctions"below) damages for loss in a breach of contract claim areavailable as of right.

An innocent party may claim damages from the party in breachin respect of all breaches of
contract. The damages may benominal or substantial. Nominal damages are awarded where
theinnocent party has suffered no loss as a result of the other'sbreach and substantial damages are
awarded as monetarycompensation for loss suffered as a result of the other party'sbreach.

For an innocent party to obtain substantial damages he mustshow that he has suffered loss as a
result of the breach(remoteness) and the amount of his loss (measure). It is up tothe party in
breach to argue that the innocent party has failedto mitigate his loss