CONFIDENTIAL LW/APR 2010/LAW436/119

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE LAW OF CONTRACT I

COURSE CODE LAW436/119
EXAMINATION APRIL 2010
TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of THREE (3) parts : PART A (5 Questions)

PART B (2 Questions)
PART C (1 Question)

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3. Candidates are strongly advised to allocate not more than 60 minutes for answering
questions in PART A.

4. Candidates are allowed to bring in a copy of the Contracts Act 1950 (unannotated)

5. Do not bring any material into the examination room unless permission is given by the
invigilator.

6. Please check to make sure that this examination pack consists of:
(i) the Question Paper
(ii) an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages
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CONFIDENTIAL 2 LW/APR 2010/LAW436/119

PART A

QUESTION 1

Den wrote to Mark offering to sell him his car for RM20.000. Den told Mark to inform Chin
(who was Den's son and lived next door to Mark) on his reply because Chin would be seeing
Den in two week's time. However, Mark immediately wrote back to Den accepting the offer.
There was no further communication between Den and Mark. A month later, while shopping
Mark heard from a friend that Den had sold the car to Naty. Mark immediately called Den
saying , "You obviously did not get my earlier letter. I accept your offer." Den replied to Mark
confirming the sale to Naty. Advise both parties.
(6 marks)

QUESTION 2

Parties who are competent to contract are specified under section 11 of Contract Act 1950?
Discuss.

(6 marks)

QUESTION 3

Nori agreed to buy a digital video camera from Oja. Nori said to Oja "If you do not deny it, I
assume that this digital video camera is brand new." Oja says nothing. Few weeks later Nori
discovers from a friend that the digital video camera was second hand. Nori wants to sue
Oja for breach of contract. Advise Nori.
(6 marks)

QUESTION 4

Explain the concept of adequacy of consideration with reference to decided cases and
principles of law.
(6 marks)

QUESTION 5

Sabrina agrees to sell to Hakeema one thousand 'gantang' of rice at a price to be fixed by
Sabrina's father. Could there be a valid agreement between Sabrina and Hakeema? Justify
your answer with references to statutory provision and decided cases.
(6 marks)

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CONFIDENTIAL 3 LW/APR 2010/LAW436/119

PARTB

QUESTION 1

a) Khajida leads Bombom to believe that 500 tons of palm oil are produced annually at
Khajida's factory. However, when Bombom examines the accounts of the factory, it
shows that only 400 tons of palm oil was produced. Discovering the fact, Bombom
still entered into a contract with Khajida to buy the factory. Later Bombom wants to
terminate the contract on ground of misrepresentation. Advise both parties.
(12 marks)

b) Section 7(a) of Contract Act 1950 provides that:

"In order to convert a proposal into a promise the acceptance must be absolute and
unqualified"

Explain with decided cases and statutory provisions its application.

(8 marks)

QUESTION 2

Mistro Sdn Bhd plan to organize a talent searching programme named 'Anak Panggung'. An
advertisement for the audition was circulated around the country. Bela went for the first
audition and she managed to be shortlisted. A final audition was held, selecting ten
contestants to be given a chance to win the grand prize. Unfortunately Bela was not selected
among the ten final contestants. She felt upset and wanted to-sue the organizers for breach
of contract. Advise Bela as to her rights.

(20 marks)

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PARTC

QUESTION 1

In February 2007, Ah Leng rented an apartment from Kit Seang at a rent of RM700 per
month. In June 2007, Ah Leng's employment with Nikko Sdn Bhd was abruptly terminated.
As a result, she was unable to pay the rent. Kit Seang agreed to reduce the rent to RM350
per month until Ah Leng is financially stable. In September 2007 Ah Leng managed to be re-
employed. However, she continued to pay rent at the low rate of RM350.

Early this year, Ah Leng began to look after Kit Seang who suffered a stroke. Later, Kit
Seang told Ah Leng that since she had looked after him very well, he would not accept any
further payment of rent from her and agreed to waive all arrears. Kit Seang also agreed to
give Ah Leng RM10,000.00 to purchase her own home. Kit Seang however went into a
coma and died soon after.

Kit Seang's executors now refuse to pay Ah Leng RM10,000.00 and further claim arrears of
rent from Ah Leng at the full rate of RM 700 per month from September 2007.

Advise Ah Leng.
(30 marks)

END OF QUESTION PAPER

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