Contract To Capacity Essay

1208 words - 5 pages



SECTION A (20 marks)
Multiple choices

1. Maniam who is 20 years old, was fully drunk when he agreed to sell his 2008 model
Perdana to Sim for RM15, 000.00. Maniam can rescind the contract because
A. he is illiterate
B. terms of the contract are uncertain
C. he was confused.
D. he was of unsound mind

2. A house is put on auction by James a licensed auctioneer. The reserve price has been fixed
at RM95, 000.00. Under the law of contract, James is making
A. an offer
B. an acceptance
C. an invitation to treat
D. a special offer

3. When the seller is in breach of the Contract of Sale, a number of remedies are available
to the ...view middle of the document...

The effect of incorporation of a company is;
A. there is limited liability
B. the amount of capital will be reduced
C. details of the company’s finances can be kept secret
D. details of the company’s finances cannot be kept secret




10. Which of the following is NOT the type of crossing that can be made on a cheque
A. not negotiable crossing
B. unlimited crossing
C. special crossing
D. general crossing

Section B: Essay (80 marks)
Choose Any FOUR questions

1. Write short notes on the following;
(a) Act
(b) Delegated Legislation
(c) Enactment
(d) Bill
(5 marks for each- 20 marks)
2. (a) Explain ‘Certainty of Terms’ under law of contract. Cite a decided case.


(b) Explain the difference between a proposal/offer and a counter-proposal.


(c) Frustration and breach are two of the ways in which a contract is discharged. Discuss
these two ways of discharge.


3. The remedies relating to breach of contract are provided in the Contracts Act and the
Specific Relief Act. Discuss any two of the remedies. Support your answer with relevant case

(20 marks)

4. (a) Ismail entered into a hire purchase agreement to buy a taxi. He has paid 10 installments
out of 30 installments. Recently Ismail was involved in an accident and has not paid 3
installments. He is worried that his taxi may be repossessed by the owner (finance company)
Explain the procedure that must be followed under the Hire Purchase Act.


(10 marks)



(b) The Consumer Protection Act 1999 was passed by the Malaysian Parliament for a
specific purpose. Explain the objectives and jurisdiction of the Consumer Protection


(10 marks)

Aminah, aged 17, comes from a poor family and has done very well in the SPM

examination. She has been offered a study loan by Yayasan Pendidikan Miskin. As stated in
the Agreement between Aminah and Yayasan Pendidikan Miskin, she must repay the loan
after completing his studies.
Based on the above facts, answer the following questions(a) Who has capacity to enter into a contract under s11 of the Contracts Act
(b) Explain the meaning of ‘necessaries’
Cite a relevant case.


(c) Aminah has been informed by a friend named Lazy, who is studying law, that she
does not have a valid contract with the Yayasan Pendidikan Miskin.
Advise Aminah on this point.





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