QuestionAnswered step-by-step12 persona property1.???xplain the six different categories of property. ?.???or a gift to qualify as a personal property, provide the three elements that need to be proven ?.???ompare and contrast between the principles of law governing the rights of Finders of Lost, Mislaid and Abandoned Property.?.???hat is bailment??.???ow is bailment created??.???xplain the duties of the bailee.?.???hat is the law that provides for Malaysians to have the freedom and right to own property??UTORIAL 11TERMINATION OF CONTRACT?1.????List the ways in which a contract can be terminated.?.????Explain how bankruptcy or insolvency renders the discharge of liabilities. ?.????a)????Describe briefly the concept of frustration b)????Explain the conditions for the doctrine of frustration to be successfully applied c)????What is the effect of frustration on the contract? d)????Cite a case law to illustrate the application of frustration. ?.????Because injunction is an equitable remedy, the granting of an injunction is solely at the discretion of the courts depending on the case. Briefly provide the conditions that must be shown by the party who is applying for the injunction.?.????What is the rationale for the grant of a Mareva injunction? ?.????The Anton Pillar order is said to be granted only in exceptional situation. Explain what would amount to such exceptional set of facts where the court feels justified to grant the order. ?.????When the contract is rescinded, what will be the effects??TUTORIAL 10CONSIDERATION1.????Explain the concept of past consideration. ?.????Discuss the implication of Kepong’s case in respect to the doctrine of past consideration is not good consideration. ?epong Prospecting Ltd &Ors v. Schmidt (1968)Facts:In 1953 Tan applied to the Government of Johore for a prospecting permit for iron ore. He was assisted in the negotiations by Schmidt, a consulting engineer. A prospecting permit was granted to Tan in Nov 1953 and in Dec 1953 Tan wrote to Schmidt stating that Schmidt was to be paid 1% of the selling p rice of all ore that might be sold from any portion of the said land and this was in payment for the work of Schmidt had done in assisting to obtain the prospecting permit and for any work that Schmidt might do in assisting to have mining operations started up. Tan then executed a power of attorney in favour of Schmidt which conferred upon Schmidt widely expressed powers to contract for the disposal of any of Tan’s mining properties on such consideration and subject to such conditions as Schmidt thought proper. In Sept 1955 an agreement was made between the company and Schmidt. Under Clause 1 of the agreement the company, inter alia, agreed to pay Schmidt 1 % of all ore that might be won from any land comprised in the 1954 agreement in “consideration of the services by the consulting engineer for and on behalf of the company prior to its formation, after incorporation and for future services.” bDisputes arose between those originally interested in the company and the persons who were subsequently interested. Schmidt commenced the present proceedings in July 1959 claiming inter alia an account of all monies payable to him under the 1955 agreement.Held:Clause 1 of the 1955 agreement established that a legally sufficient consideration had moved from Schmidt. Services prior to the company’s formation could not amount to consideration as they could not be rendered to a non-existent company, nor could the company bind itself to pay for services claimed to have been rendered before its incorporation. But the inclusion of that ineffective element did not prevent the other two elements.?ORD WILBERFORCE:… Apart from the question as to the validity of the execution of the 1955 agreement, the appellant company submitted that Schmidt was not entitled to sue upon it for a variety of reasons. In the first place, it was said that there was no consideration given by Schmidt for the obligation undertaken by the appellant company. The consideration expressed in the 1955 agreement was (by Clause 1) as follows:The company shall in consideration of the services rendered by the consulting engineer for and on behalf of the company prior to its formation after incorporation and for future services pay to the consulting engineer one per cent … ?heir Lordships agree with the Federal Court in holding that this establishes a legally sufficient consideration moving from Schmidt. They accept that the services “prior to its formation” cannot amount to consideration. No services can be rendered to a non-existent company, nor can a company bind itself to pay for services claimed to have been rendered before its incorporation. The inclusion of this ineffective element, however, does not prevent the other two elements, or one of them, from constituting valid consideration, and both of them, in their Lordships’ opinion do so. Services rendered after incorporation but before the date of the agreement, can under the law of Malaysia, validly amount to consideration for an agreement to pay, since section 2(d) Contracts (Malay States) Ordinance (No 14 of 1950) expressly provides for this; in point of fact there is no doubt that such services were rendered. As regards future services their Lordships would hold if necessary that the clause should be understood as meaning that Schmidt as consulting engineer agreed to make his services available in the future if required by the company. Sufficient consideration is therefore established….?ppeal dismissed.?ead and discuss the implication of the following cases:??????Pang Mun Chung & Anor v Cheong Huey Charn Yeep Mooi v. Chu Chin Chua ?2.????Contracts that are made cannot be made against public policy. ?)???xplain the notion of public policy. It is based on the notion of protecting the public good and therefore, any injury to to the public good is a basis for denying the legality of a contract or other transaction.?)???rovide examples of such contracts.Agreement to reward a civil servant when he/she successfully procured a benefit ?. ????oes the Contracts Act 1950 outline/define the types of contract that are illegal???????o. It merely states that contracts that are not unenforceable are void (section 2(g). ?4.????What is the purpose of section 24 Contracts Act 1950?It provides for situations or object which are unlawful that will render such contracts void. The situations defined areobject is illegal, to restrain a marriage or trade; to restrain legal proceedings?.????Why does the law prohibit contracts entered into by/with business where their operations are unlicensed???????his is to protect the public so they will not be cheated or harmed by the products or services provided by parties where respective licenses are required.?.????What happens with contracts that are entered into with a business that is an unlicensed operation???????ontracts become unenforceable and therefore void. ??????.????Discuss the case below. ??????Act Sdn. Bhd. sells QuickLoss – a weight loss formula which is sold in the form of capsules. QuickLoss has never applied to the Malaysian Health Ministry for the latter’s approval for QuickLoss as a health supplement. Act SdnBhd promises that at least 2 kgs will be lost each week by consuming eight capsules a day. QuickLoss is sold on Facebook. Ann has been buying and consuming QuickLoss for the past two months. A box of QuickLoss for two weeks supply costs RM250. Ann now complains that she not only failed to lose any weight but she has been suffering from serious digestive problems causing her to vomit each time she ingests food. She would like to sue Act Sdn Bhd. for a total of RM5000 (RM1000 for the four boxes of QuickLoss she bought and RM4000 for the medical fees). Advise Ann.??nn needs to first establish that she and Act Sdn. Bhd. have a valid contract for her to sue for RM5000. The elements of offer, acceptance and consideration do not appear to be an issue. Instead, the main problem is whether the articles for sale i.e. the sale of QuickLoss is legal as in Malaysia health supplements must first get the approval of the Malaysia Health Ministry before they can be legally sold. Since this was not obtained, then this case comes under contracts for sale of article that cannot be thesubject matter of ordinary sale. On this, the contract between Act SdnBhd and Ann is an unenforceable one as it is void. When the contract is void, Ann can rely on section 66 Contracts Act which states that the person who has received any advantage under the contract is bound to restore it, or to make compensation for it, to the person from whom he received it. Therefore, Ann is advised to rely on this section to claim the RM5000 from Act Sdn Bhd. Void contracts where section 66 Contracts Act has been applied was also seen in?eep Mooi v. Chu Chin Chua.?TUTORIAL EIGHTMID TERM REVISION?ECTION ONE:?.???Name the two types of misrepresentation under section 18 Contracts Act ?.????Name the two options that are available to the party where the contract is voidable.?3. ????hich courts in West Malaysia have appellate functions (i.e. to hear appeal cases). Name any three. ????????.????Name two disadvantages of the Common Law?.????What are the sources of law in Malaysia that Article 160 Federal Constitution include? Name three. ??????.????List any three areas (types of cases) that come under the law of tort.?. ????ame the five factors that can render a contract ineffective ?.????These laws aims to promote competition in business, break up monopolies, and reduce collusion. What kinds of laws are these called??SECTION TWO:?1. ????escribe the effects of a contract where it is found that undue influence was used by one party over the other??2. ????rovide two distinctions between a void and voidable contract. ?.????John agrees to buy from Ali the latter’s used iPhone 7 Plus for RM500. John paid Ali and when Ali gave the phone to John, Ali realised that actually he only had the model iPhone 7 and that he never owned an?phone 7 plus. Advise John.?4.????Explain the significance of the case of RosliDarus v. MansorHj. Saad & Anor (2001) in respect to the relationship between the Plaintiff and his uncle.??. ????n a quasi-contract, which is also known as “implied-in-law contract”, what can the court order the party to do????????.????Partridge v Crittenden Carlill v Carbolic Smoke Ball Co Ltd?UTORIAL SEVENDEFECTIVE CONTRACTPART ONE: MULTIPLE CHOICE QUESTIONSQuestion 1Which one of the following statements is incorrect?a)?isrepresentations cover false statements and half-truths.b)? statement which is true when it is made but becomes false before the contract is completed may amount to a misrepresentation.c)?o be actionable the misrepresentation must be the only reason that persuaded the other party to enter into the contract.d)?n English law there is no duty to disclose information before a contract unless the contract is one of the utmost good faith or a special relationship of trust exists between the parties.?uestion 2Misrepresentation in a contract makes the contract:a)?oid.b)?llegal.c)?oidable.d)?nenforceable.?uestion 3An operative mistake in a contact makes the contract:a)?oid.b)?llegal.c)?oidable.d)?nenforceable.?uestion 4What is meant by a common mistake in the law of contract?a)? mistake that is often made.b)?here both parties make the same mistake.c)?here only one of the parties makes a mistake.d)?here the parties are at cross purposes.??Question 5George buys a vase from Louis for RM200. Louis believes the vase is worthless but George knows it is valuable. George later sells it for RM10,000. What legal action can Louis take against George?a)?ue George for the return of the vase as the contract is void for unilateral mistake.b)?ue George for breach of contract.c)?ouis has no legal remedy.d)?ue George for the return of the vase as the contract is void for common mistake.?uestion 6The possible remedies for negligent misrepresentation are:a)?escission and damages.b)?amages only.c)?escission only.d)?pecific performance.?uestion 7What does rescission of a contract mean?a)?he contract is set aside and the parties are put back in the same position as if the contract had never been entered into.b)?he parties are put into the same position as if the contract had been completed.c)?onetary compensation.d)? false statement of fact.?uestion 8Which of the following statements is incorrect?a)?uress is where a party has entered into a contract after one party has threatened physical violence or serious economic coercion.b)?he presence of duress makes a contract void.c)?ndue influence is where a party has entered into a contract after excessive persuasion.d)?he presence of undue influence makes a contract voidable.?uestion 9When will the courts presume that there has been undue influence is the signing of a contract?a)?here there is a fiduciary relationship with the party against whom the undue influence is alleged.b)?n all contracts made between a married couple (or a co-habiting partner).c)?he courts will not presume undue influence. The party alleging undue influence must prove it has occurred.d)?here the contract is oral.?uestion 10Sally contracts with her employer that she will have a salary of RM35,000 per annum plus a cash payment of RM20,000 at the end of the year which will not be declared thereby avoiding tax. Sally’s employer has now refused to pay her the RM20,000. Can Sally take legal action to enforce the payment of RM20,000?a)?es, Sally has completed the work as agreed.b)?es, provide the contract is in writing.c)?o, the contract is void for illegality.d)?o, the contract is void for mistake.?PART TWO: SHORT ANSWERS?.????Name the circumstances which will cause a contract to be defective. ?. ????hat are the types of mistakes that render a contract defective??.????Explain the following concepts:??????) Rescission??????) Affirmation?.????Describe the conditions that are required for a case of misrepresentation to be actionable.?UTORIAL FIVE1.??Discuss the rules relating to offer. Cite some cases in respect to the relevant rules.?.??List the situations when an offer can come to an end. ?.??How does counter-offer arise? Provide examples to illustrate how it takes place. ?4.??John runs a pharmaceutical shop and has a pharmacist at the counter most of the days. Many items, including drugs, were displayed and sold in the shop. Mary walks in and takes a few items including hair brushes and toiletries. She inquires from John on the toiletries. In the meantime, she also takes some drugs off the shelf when the pharmacist steps out for a while. She then checks out the items including the drugs at the payment counter. John is later charged with selling drugs illegally. In the meantime, John offers Aaron to paint his shop for RM5000 and states that Aaron must reply within 3 days from the date of offer by whatsapp or sms message on the phone.?a.???s John liable for the charge of selling the drugs to Mary illegally? Discuss?.??Discuss the law of offer and acceptance in respect to John’s offer to Aaron to paint his shop.?UTORIAL FIVEANALYSIS OF CASE LAWS RELATING TO VOID & VOIDABLE CONTRACTS?ASE ONE:?hmad bin Udoh & Anor v Ng Aik Chong?he respondent had entered into an agreement with the appellants for the lease of padi land for a period of six years. Pursuant to the agreement, a sum of RM1,500 was paid to the appellants, who subsequently refused to allow the respondent to till the land. In an action to recover the sum paid, the Sessions Court judged in favour of the respondent.?On appeal, the appellants raised a new issue that was not pleaded earlier – that the agreement was illegal for contravening S3(1) of the Padi Cultivators Ordinance 1965 and that therefore the sum paid under the illegal agreement was not recoverable by the respondent.?The High Court dismissed the appeal. The case went on further appeal to the Federal Court.Suffian FJ (as he then was) held that for an agreement “discovered to be void” under S66, “it includes an agreement that was void from its inception.” His lordship held that based on the facts: “There is no evidence that the respondent was in?ari delicto?nd that he knew when he entered into the agreement that it was forbidden by law, the illegality of the agreement was discovered subsequent to the making of it, the claim for restoration of his money is not based on the illegal contract but dissociated from it …”??ASE TWO:?eep Mooi v Chu Chin Chua &Ors?he appellant had deposited some money with a person who was carrying on a borrowing business and as he was not a public company or a licensed borrowing company, the transaction was illegal, void and unenforceable under S3 of the Borrowing Companies Act 1969 (“the Act”).?The appellant did not know nor suspect that the deposit transaction contravened the Act. She placed her money on deposit in good faith and subsequently received interest from it. She only became concerned about the safety of her money when she learnt of the depositee’s death and demanded a refund but was refused and she filed a suit against the estate.?She only became aware that the transaction had contravened the Act when she received a copy of the statement of defence claiming that the transaction was void and unenforceable. It was under such circumstances that the appellant became entitled to the restitution of her deposit under S66 of the Contracts Act where the court went on to say:?An agreement ‘discovered to be void’ does not mean that the contract is void on discovery or void because of discovery of illegality. It means what it says
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