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UITM KELANTAN CAWANGAN MACHANGACADEMIC YEAR: OCT 2020- FEB 2021LAW 299 (BUSINESS LAW)TEST40 MARKINSTRUCTION:THERE ARE TWO PART OF QUESTION, PART A AND PART B. PART A IS A MULTIPLE-CHOICEQUESTION. PART B IS A PROBLEMATIC QUESTION. PLEASE READ EACH QUESTIONCAREFULLY. STUDENT MUST SAVE THE ANSWER IN A ...

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LAW 299 BUSINESS LAW

UITM KELANTAN CAWANGAN MACHANG ACADEMIC YEAR: OCT 2020- FEB 2021 LAW 299 (BUSINESS LAW)

TEST

40 MARK

INSTRUCTION: THERE ARE TWO PART OF QUESTION, PART A AND PART B. PART A IS A MULTIPLE-CHOICE QUESTION. PART B IS A PROBLEMATIC QUESTION. PLEASE READ EACH QUESTION CAREFULLY. STUDENT MUST SAVE THE ANSWER IN A WORD DOCUMENT NOT A PDF.

MARK: / 40 FINAL MARK: /20

(MARKS WILL BE DEDUCTED UPON THE LATE SUBMISSION)

PART A STUDENT MUST ANSWER ALL THE QUESTION BY UNDERLINE THE CORRECT ANSWER. 1. Who is offeror in the contract? i. Offeror is the party who makes the offer. / ii. Offeror is the person who either accepts or does not accept the offer.

LAW 299 BUSINESS LAW iii. iv. A. B. C. D.

Offeror is the one who makes a specific proposal to another to enter into a contract/ Offeror is a person to whom an offer to enter into a contract has been made. I, II, III, IV. I and III (ANSWER) I, III, IV II, III, IV

2. Display of Goods in a shop is __________ a. A proposal b. An offer c. Acceptance d. Invitation to treat (ANSWER) 3. Which of the following is a proposal? A. An advertisement in a newspaper to sell a bungalow B. An advertisement in a brochure about a holiday package C. An advertisement to give a reward of RM50.00 for the return of a lost wallet (ANSWER) D. A job advertisement in a newspaper 4. What is the legal principle in the case of Carlill v Carbolic Smoke Ball Company Ltd [1893] 1 QB 256? A. A proposal can be made to the world at large (ANSWER) B. A proposal can be made to a specific person C. A proposal must be communicated D. An acceptance must be communicated 5. The relevant case that explains ‘an offer must be communicated’ is? A. R v Clarke (ANSWER) B. Boulton v Jones C. Taylor v Caldwell D. Harris v Nickerson 6. The main elements of a contract include the following except; A. Acceptance B. Invitation to treat (ANSWER) C. Consideration D. Capacity

7. Minors can enter into valid contracts if they concern the following types of contracts except contracts regarding to? A. Necessaries B. Hire purchase of motor vehicles (ANSWER) C. Scholarship D. Insurance

LAW 299 BUSINESS LAW 8. According to the following doctrine, only the parties to a contract can enforce the rights or be subject to the obligations which arise under it; A. Doctrine of human rights B. Doctrine of strict liability C. Doctrine of ‘first in first out’ D. Doctrine of ‘privity of contract’ (ANSWER) 9. Section 19 of the Contract Act 1950 provides that the agreement is a contract voidable at the option of the party whose consent was caused by one or more of the following EXCEPT? A. Coercion B. Illegality (ANSWER) C. Fraud D. Misrepresentation 10. All the following agreements are VOID except? A. An agreement made with inadequate consideration (ANSWER) B. An agreement in restraint of trade C. An agreement by way of wager D. An agreement with uncertain terms which is not capable of being made certain 11. Mek Nab went into Watsons drugstore to purchase Fish Oil Supplement from Blackmores. Later on she has been prevented by the promoter as she said she had a low blood pressure. Disappointed with such situation Mek Nab take an action against Watsons stating that she had been prevented by promoter to buy. Which situation arise from the above case? A. Offer B. Acceptance C. Consideration D. Invitation to treat (ANSWER) 12. Uqasha offer to Kamal the latest iPhone for RM5000. Later, Kamal make a new proposal that he want to buy the iPhone for RM3000. Kamal is now become an __________? A. Offeror B. Offeree (ANSWER) C. Acceptor D. Promisee

13. Which one is not a contract? A. Lopa give RM10 for a plate of Ayam Gepuk B. Manrose promise Senrose RM20000 if she cut the flowers at her house. C. Dahlan assisted Zahid to get contractor’s license. Later, Zahid promise to give 5% of his future profit. D. Lily take a Postan medicine at Nardic Pharmacy. (ANSWER)

LAW 299 BUSINESS LAW

14. All agreement made without consideration is void except A. Natural love and affection (ANSWER) B. Agreement to compensate past voluntary act C. Agreement to pay debt bared by Limitation Act D. A husband promises to pay his wife monthly allowance 15. Shukri Yah owes RM50,000 from Kamal Deli but the debt is barred by limitation. Shukri Yah signs a written agreement to pay Kamal Deli RM10,000 on account of the debt. What is the status of agreement? A. Agreement is valid B. Agreement is void C. Agreement is uncertain D. Agreement is voidable (ANSWER) 16. A contract enter by a minor is void. But there are some exceptions to this general rule. Which of the following are correct? i. Marriage ii. Foods iii. Scholarship iv. Insurance A. I, ii B. i.iii C. I,ii,iii D. I,ii,iii,iv (ANSWER) 17. Which person are capable to enter into a contract? A. Sound mind (ANSWER) B. Drunken person C. Person suffer mental disorder D. Sick 18. Nadia post a letter of acceptance to buy a bracelet from Joyah, but the letter is delayed in the course of transit, so Joyah is _____________ A. Not bound by such acceptance. (ANSWER) B. Bound by such acceptance C. Need to pay to Nadia D. Need to give letter of offer to Nadia

19. Zul provides 10 number less of workers compared to what he was supposed to do under the contract. Awal stopped payment but then Zul proceed to sue Awal for damages. Zul’s act is actually a ___________ A. Discharge by impossibility B. Discharge by performance C. Discharge by consent D. Discharge by breach (ANSWER)

LAW 299 BUSINESS LAW

20. If a person obtains a contract by fraud, he or she shall entitle to ____________. A. Damages B. Performance C. Court (ANSWER) D. Repudiation

PART B THERE ARE TWO PROBLEMATIC QUESTIONS. PLEASE ANSWER ONE QUESTION ONLY. a) Taylor had lost her precious dog, Baby. She advertised in the local newspaper, London Daily News that whoever finds Baby and return her to Taylor, she would give that person a brand-new Lamborghini as a reward. Three days later, Baby was

LAW 299 BUSINESS LAW found by Shawn who returned her to Taylor. Shawn had read the newspaper and seen the advertisement. Advised Shawn whether he is entitled to the reward.

20 marks

ANSWER: 1) Issue in this case is whether the communication of proposal is complete between Taylor and Shawn? and whether Shawn has right to claim the reward of brand-new Lamborghini from Taylor? Offer is a statement or other indication made by the individual which prepared to enter into a contract with another on certain terms. It is provided under Section 2(a) of CA 1950 which is “when one person signifies to another his willingness to do or abstain from doing anything… he is said to make a proposal”. In Section 4(1) of CA 1950 stated that a proposal is only complete when it comes to the knowledge of the offeree. 2) Unless there is communication of the proposal as suggested in Section 2(a) of CA 1950, ‘when one person signifies to another his willingness to do or abstain from doing anything…’ there can be no acceptance to form an agreement. The communication of offer is complete only when the offer comes to the knowledge of the offeree, Section 4(1) of CA 1950. If the offer has not been communicated to the offeree, there is no acceptance could be made to form a binding contract. Illustration: A party who casually returns a lost property to its owner can legally claim a reward if he/she is aware of it and discovers the existence of an offer of reward at the time before the return of lost property. In the case of R v Clarke (1927), the Australian Government offered a reward for the information leading to the arrest and conviction of the criminal. One of the criminal, Clarke gave info which leads to the arrest of Y. Clarke was later acquitted and claimed for the reward. The Court held that he was not entitled for the reward because he was not aware of the reward when he gave the information to the government.

3) By applying Section 4(1) of the CA 1950 and the case of R v Clarke, Shawn has right to claim the reward of a brand new Lamborghini from Taylor. This is because at the time Shawn returned Baby to Taylor, Shawn already know and seen about the advertisement of reward in local newspaper, London Daily News. Shawn was aware of it before its return.

LAW 299 BUSINESS LAW In other words, the communication of proposal/offer was completed. There is a contract between Taylor and Shawn. 4) As a conclusion, my advice to Shawn is, he can claim for the reward of a brand new Lamborghini as the communication of proposal was completed by virtue of Section 4(1) of CA 1950 as he was aware of the advertisement of reward in local newspaper, London Daily News.

b) Camila wrote a letter to Ariana offering to sell her ring at the price of RM350. According to the letter, the offer will be open until 5 August 2020. Ariana posted a letter on 27 July 2020 accepting the offer. The letter was received by Camila on 7 August 2020. On 31 July 2020, Ariana wrote another letter to Camila to cancel her acceptance and the letter reached Camila on 10 August 2020. Camila insists that there is a valid contract between them.

LAW 299 BUSINESS LAW Discuss whether any contract exists between Camila and Ariana.

20 marks...