Nov 26, 2007

Business Law Tutorial 7

[ Question 789 are not tested in the exam...so no worries!! ]



7. When Tua signed a contract to sell her house to Dr. Senyum which is worth RM500000 for RM250000, can she do so?



Under Explanation 2 to Section 26 of COntracts Act, 1950, consideration need not be adequate but must be of some value. Here, even though the consideration is inadequate but the contract is valid.



Section 10 of COntracts Act, 1950 states that all agreements are contracts if the consent is freely given. According to Section 14 of Contracts Act, 1950, the consent is said to be freely given if none of the vitiating factor presents.



Section 16 of Contracts Act, 1950 defines undue influence as an act of dominating one's mind until one cannot think for oneself. Here, there is presumed undue influence because the relationship between Tua and Dr. Senyum is Doctor and patient. It gives rise to voidable contract.



Voidable contract is defined in Section 2(i) of Contracts Act, 1950 as an agreement which is enforceable by law at the option of one or more parties but not at the option of other or others.



If Dr. Senyum can prove that there is no presence of undue influence, the contract remains valid because consideration need not be adequate. Therefore, Dr. Senyum can sue Tua for breach of contract.

If Dr. Senyum cannot prove there is no presence of undue influence, the contract is voidable. It depends on Tua whether to carry on the contract or not. Here, when Tua had changed her mind about selling her house to Dr. Senyum, she decided not to carry on with the contract, thus the contract is void. Dr. Senyum cannot sue Tua for breach of contract.





8. Section 10 of COntracts Act, 1950 states that all agreements are contracts if the consent is freely given. According to Section 14 of Contracts Act, 1950, the consent is said to be freely given if none of the vitiating factor presents.



Section 18 of Contracts Act, 1950 defines misrepresentation as an act of making false statements which influence one to make decisions. The false statement made by Foo, of which the restaurant will earn a monthly profit of at least Rm 10000 for the next eighteen months, has influenced Goh to buy the restaurant. In the end, Goh suffers damages. It gives rise to voidable contract.



Voidable contract is defined in Section 2(i) of Contracts Act, 1950 as an agreement which is enforceable by law at the option of one or more parties but not at the option of other or others.



It is up to Goh whether to carry on with the contract or not. If Goh decided not to carry on with the contract, he can sue for breach of contract under Section 18 of Contracts Act, 1950 and claim for damages.





9. Section 16 of Contracts Act, 1950 defines undue influence as an act of dominating one's mind until one cannot think for oneself. There are two types of undue influence, namely the presumed undue influence and normal undue influence.



Presumed undue influence is assumption of presence of undue influence. Relationships that give rise to presumed undue influence are doctor and patient, parent and child, lawyer and client, religious advisor and desciple, etc. The party being sued have to prove that he has not influenced another party.



Normal undue influence requires the party who sue to prove the presence of undue influence. Once the period of undue influence elapses, the contract can be repudiated within reasonable time.





10. When Jack lent RM50000 to Peter on 1.6.98 to assist Peter in his business, did he know his cousin business is illegal? If he did not know, he can still sue Peter for breach of contract, provided that Jack has the proof or contract to prove his transaction with Peter. If Jack knew, then it is an illegal contract.

Illegal contract is defined in Section 24 of Contracts Act, 1950 as an agreement which is said to be unlawful, if it is forbidden by law, or it is of such a nature that if permitted it would defect the law, or it is fraudulent, or it involves or implies injury to the person or property of another, or the court regards it as immoral or opposed to public policy. It gives rise to void contract.

Void Contract is defined in Section 2(g) of Contracts Act, 1950 as an agreement which is not enforceable by law. It gives rise to no rights or obligations. In this case, Jack cannot sue Peter for RM 50000 because the contract is void.


11. A contract is said to be discharge by frustration if there is a change in circumstances which renders a contract legally or physically impossible of performance.

Under Section 57(2) of COntracts Act, 1950, there are two instances of frustration. The frustration should be supervening and subsequent to the formation of the contract. Self induces frustration does not discharge a party of his contractual obigations - Maritime National Fish Ltd. v. Ocean Trawlers Ltd. Mere increase in price does not amount to frustration.

The contract does not merely voidable but is brought to an end forthwith and automatically - Hirji Mulji v. Cheong Yue Steamship Co. Ltd- Such contract becomes void.

Section 2(g) of Contracts Act, 1950 defines void contract as an agreement which is not enforceable by law. It gives rise to no rights or obligations.



12. Condition is a major breach of which it goes to the root of the contract, and the contract can be repudiated.

Warranty is a minor breach of which the party only can claim for damages but the contract still have to be carried on.

Innominate term is a breach of which its severity will be assessed, whether it is a condition or warranty - Hong KOng Fir Shipping v. Kawasaki Kisen Kaisha, as the term is not clearly stated in the contract. The judge will try to save the contract as much as he can.

If either one of the conditions below is satisfied, it is a condtion:
  • the other party has renounced his obligations under the contract; or
  • the other part has rendered his obligations impossible of performance; or
  • the party not in default has been deprived of substantially the whole benefit which it was intended he should obtain from the contract.

Nov 23, 2007

Sexy Babe

Tiredness rules...as time flew mercilessly every second that it could...
Too fast and Too furious
Many things happened in just a week's time...

Perhaps I myself need something to relax..and perhaps you do too..

Check all these sexy Babes i have for you, and me...









Boobies being striped off...

Aha...this is the most interesting one..wakaka...


Na na...this is for you as my special guest...(to the ladies)


Aren't they look funny??
Haha...all these are pieces of art..or shall i call it the masterpiece of the baker....
To inject such creativity into their products are worth praising...

Long time pictures~~

Issue #1


In case you do not notice, on 17 of October 2007, something strange happened.
Have a close look at the picture
what's wrong with it??

The calendar was actually being printed like that, no distortion of picture, this is how it originally looks like.
17 is being reversed...swt..and the newspaper actually reported on this issue the next day this strange phenomenon happened.


Issue #2

Remembered my previous clubbing experience??
Well..sorry for not attaching any pictures for ya...
NOw i will compensate it...

By the time we reached Ruums, 10.55pm 31/10/2007

Not even a single soul was there.

1.14am 1/11/2007

Crowds filled the whole dance floor...whoa..so early so hardworking a!!

By the time we went to Diana's house to have a short nap...All these happened!!

Mey Yee and Simon ye ye were sleeping "soundly"...really cannot stand of them...their snoozes were damn freakingly noisy till i Cannot have a nice sleep..


This was the drunker king...Cyrus...being so emotionally affected on the night itself...after he was drunk badly.



Diana and albert was sleeping while the two Noisy Snoozers dozed off...


Issue #3

Nothing special actually
the day was as usual as ever...
as i drove off on the road...so deliberately took this simply special scenery


Nice??
This was taken in Block H of Tarc...while waiting for BA tutorial to start.
The sky was blue...the patch of grass simply like those in St mary's...

After a minute, look at the sky...Shockingly found that the sky was so ominously dark...

Simply casual shots by hitomi...

Dining+Birth Time

I have a cake for ya...
Aha...this one is bought from the shop namely Secret Taste, which is located in Wangsa Maju

The box design is nice man!!


This is the one...siphon cake with nice decorations~~
and the birthday boy is Hong.


Please take a good look at the pictures...what have you spotted??

Mind to explain why this happened???
Well...well...actually it was being eaten by mice...big mice...
This one costs us RM 16...la la...but it is far more better than Diana's birthday cake le...

Besides celebration for HOng, we had our general meeting as usual on that very wednesday
it has been the tradition for our family to dine after the meeting...
and so we went...

Taken in the restaurant of which is located in Genting Klang, in short, GK, namely Station One
Kepong have one too, but i never go to there before...

Let me introduce our family members..

Leng lui Kitty + me


John (non-member; SBS SWC Chairperson 2007) + Ye Ye Salmon!!(ye ye knew i was taking the picture and see how he looks like)


Diana (birthday girl in previous post) + ALan (the persuasive alan chong- i salute him!!)

Blur blur leslie + Shy SHy Albert (used to call him teh tarik; since that he is the school representative for SBS now...haha...this name cannot be used le!)
As introduced, John + Simon whom look at John's laptop out of his curiousity
Nanana...see this ye ye...super like to take pictures...some more like to self shoot tim!! The upcoming Asia next top model...
Talkative character too...
NObody was looking at the camera except Albert...
When nobody choi ye ye...he will self entertained himself...haha...
actually i was the another player la...
and guess what...ye ye lost le...coz he too old...hand shake too much...wakaka!!

Nov 20, 2007

Business Law Tutorial 6

1. Void contract is defined in Section 2(g) of Contracts act, 1950 as an agreement which is not enforceable by the law, which gives rise to no rights or obligations.

Under Section 11 of Contracts Act, 1950, every person is competent to contract who is of age of majority, and who is of sound mind and is not disqualifying from contracting by any law to which he is subject to.


The Age of Majority Act, 1971 states that the age of majority is 18. The Privy Council in MOhori Bibee v. Dhurmodas Ghose held that a minor cannot make a valid contract since such a contract is void. However there are exceptions:

  • Contracts for necessaries
  • Contracts of scholarships
  • COntracts of insurance

Section 69 of Contracts Act, 1950 states that Necessaries are things that are essential to the existence and reasonable comfort of the minor and a minor must pay a reasonable price for necessaries that are suitable to the social status unless one can prove that one has adequate supply of it-Nash v. Inman.

The COntracts (Amendment) Act, 1976 provides that a scholarship agreement entered into by a minor is valid when it is granted by the federal or state government, a statutory anthority, or an educational institution such as a university.

Under the Insurance Act, 1963(Revised 1972), a minor above age of 10 may enter into a contract of insurance. HOwever, if he is below age of 16, he can only do so with the written consent of his parent or guardian.

In conclusion, contracts made by minor are generally void but there are exceptions for contracts for necessaries, contracts of scholarships, and contracts of insurance.


2. According to Section 11 of Contracts Act, 1950, every person is competent to contract who is of the age of majority, and who is of sound mind and is not disqualifying from contracting by any law to which he is subject to.

According to Age of Majority Act, 1971, the age of majority is 18. Seow Tee is 15, therefore he is a minor.

The Privy Council in MOhori Bibee v. Dhurmodas Ghose held that a minor cannot make a valid contract since such contract is void. HOwever, there are exceptions:

  • Contracts for necessaries
  • Contracts of scholarships
  • COntracts of insurance

(a) When Seow Tee ordered 3 piece suits worth RM3000, is it a necessary? Under Section 69 of Contracts Act, 1950, necessaries are things that are essential to the existence and reasonable comfort of the minor and a minor must pay a reasonable price for necessaries that are suitable to the social status unless one can prove that one has adequate supply of it-Nash v. Inman.

If Seow Tee need the 3 piece suits, then it is a necessary, and he would have to pay a reasonable price for it. However, the price might not be the contract price of RM3000 as it is up to the judge to decide what is the reasonable price. If Seow Tee can prove that he has plenty of suits at home, then he does not need to pay for it- Nash v. Inman because it is not a necessary to have the 3 piece suits.

(b) When Seow Tee spent Rm1000 for lunch, is it a necessary? Under Section 69 of COntracts Act, 1950, necessaries are things that are essential to the existence and reasonable comfort of the minor and a minor must pay a reasonable price for the necessaries that are suitable to the social status unless one can prove that one has adequate supply of it-Nash v. Inman. Here, lunch is a necessarry, therefore he has to pay a reasonable price for it, however the reasonable price might not be the contract price of RM1000.

(c) Under The Contracts(Amendment) Act, 1976, a scholarships entered by a minor is valid when it is granted by the federal or state government, a statutory authority, or an educational institution such as an university. Here, the contract is valid and binding because the scholarship is granted by the Government.



3.Section 11 of COntracts Act, 1950 states that every person is competent to contract who is of the age of majority, and who is of sound mind and is not disqualified from contracting by any law which he is subject.

According to Age of Majority Act, 1971, the age of majority is 18. Since Ms. Amy is only seventeen, therefore she is a minor.

The Privy Council in MOhori Bibee v. Dhurmodas Ghose held that a minor cannot make a valid contract since such contract is void. However, there are exceptions:

  • Contracts for necessaries
  • COntracts of scholarship
  • COntracts of insurance

Under Section 69 of COntracts Act, 1950, necessaries are things that are essential to the existence and reasonable comfort to the minor and a minor must pay a reasonable price for necessaries that are suitable to the social status unless one can prove that one has adequate supply of it - Nash v. Inman.

The COntracts (Amendment) Act, 1976 provides that a scholarship agreement entered into by a minor is valid when it is granted by the federal or state government, a statutory anthority, or an educational institution such as a university.

Under the Insurance Act, 1963(Revised 1972), a minor above age of 10 may enter into a contract of insurance. HOwever, if he is below age of 16, he can only do so with the written consent of his parent or guardian.

In conclusion, Ms. Amy cannot be a party of contract except for contracts for necessaries, contracts of scholarship, and contracts of insurance.



4. Section 11 of COntracts Act, 1950 states that every person is competent to contract who is of the age of majority, and who is of sound mind and is not disqualified from contracting by any law which he is subject.

According to Age of Majority Act, 1971, the age of majority is 18. Since Mary is sixteen, therefore she is a minor.

The Privy Council in MOhori Bibee v. Dhurmodas Ghose held that a minor cannot make a valid contract since such contract is void. However, there are exceptions:

  • Contracts for necessaries
  • COntracts of scholarship
  • COntracts of insurance

Under Section 69 of COntracts Act, 1950, necessaries are things that are essential to the existence and reasonable comfort to the minor and a minor must pay a reasonable price for necessaries that are suitable to the social status unless one can prove that one has adequate supply of it - Nash v. Inman.

If Mary is an international star, then it is a necessary for her to have a diamond jewellery set. She will only pay reasonable price for it, which might not be the contract price of RM10000. It is up to the discretion of the judge to determine the reasonable price for the diamond jewellery set. However, if Mary can prove that she has plenty of diamond jewellery set at home, then it is not a necessary - Nash c. Inman. She no need to pay for it.

If Mary is just a local singer, then it is not a necessary for her to have a diamond jewellery set, therefore, she does not need to pay for it.

In conclusion, Glitter Jewellers Sdn. Bhd. can only claim for the diamond jewellery set if it is a necessary for Mary.



5. (a) Illegal contract is defined in Section 24 of Contracts Act, 1950 as an agreement which is unlawful, if it is forbidden by law, or it is of such a nature that, if permitted it would defect any law, or it is fraudulent, or it involves or implies injury to the person or property of another,or the court regards it as immoral, or opposed to public policy. It gives rise to void contract.

Here, selling illegal copies of several popular CD's of famous musicians for the sum of RM3000 is forbidden by law, therefore the contract is void.

Void COntract is defined in Section 2(g) of COntracts Act, 1950 as an agreement which is not enforceable bylaw. It gives rise to no rights or obligations.



5.(b)When Tan bought an apartment in Penang at an extreme low price from James, can he do so? Explanation 2 to Section 26 of COntracts Act, 1950 states that consideration need not be adequate but must be of some value.

Consideration is defined in Section 2(d) of Contracts Act, 1950 as when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, such act or abstinence or promise is called a consideration.

Section 10 of Contracts Act, 1950 provides that all agreements are contracts if there are made by the free consent of parties.

Section 14 of COntracts Act, 1950 provides that if any of the vitiating factor presents, the contract is not made under the free consent of the parties.

Undue influence is defined in Section 16 of Contracts Act, 1950 as an act to dominate one's mind to such a great extent till one cannot think for himself. In this case, the relationship between Tan and James as lawyer and client gives rise to undue influence as there is pressure on James to sell his apartment to Tan.

If Tan can prove that there is no undue influence, the consent is said to be freely given, therefore the contract is valid as consideration need not be adequate. If Tan ccannot prove that there is no undue influence, it gives rise to voidable contract.

Voidable contract is defined in Section 2(i) of COntracts Act, 1950 as an agreement which is enforceable by law at the option of one or more parties, but not at the option of the other or others. Here, there are two options. If the contract is carried on, the contract is valid, if it is not, the contract is void.



5.(c) When Rose agreed to sell her large collection of paintings and art works at a bargain price of Rm500 to Johnson, can she do so? Explanation 2 to Section 26 of COntracts Act, 1950 states that consideration need not be adequate but must be of some value.

Consideration is defined in Section 2(d) of Contracts Act, 1950 as when, at the desire of the promisor, the promisee or any other person has done or abstained from doing, such act or abstinence or promise is called a consideration.

Section 10 of Contracts Act, 1950 provides that all agreements are contracts if there are made by the free consent of parties.

Section 14 of COntracts Act, 1950 provides that if any of the vitiating factor presents, the contract is not made under the free consent of the parties.

Undue influence is defined in Section 16 of Contracts Act, 1950 as an act to dominate one's mind to such a great extent till one cannot think for himself. In this case, there is no undue influence, therefore the contract is valid because consideration need not be adequate but must be of some kind of value.



5.(d) [ This type of question would not be asked in exam...no worries!!Ms Pari only give us the brief answer ]

(i) The agreement made between Hank and Ahmad is not a contract, therefore this is not discharge by frustration but mistakes. Mistakes is defined in Section 21 of COntracts Act, 1950 as where both parties to an agreement are under a mistakes to a matter of fact essential to the agreement, the agreement is void. Here, both Hank and Ahmad is unaware of the fact that the antique had been destroyed, therefore the contract is void. Void COntract is defined in Section 2(g) of Contracts Act, 1950 as an agreement which is not enforceable by law. It gives rise to no rights or obligations.

(ii) In this case, the contract is established between Hank and Ahmad. After the valid contract is made, there is discharge by frustration. Under Section 57(2) of COntracts Act, 1950 , it states that there are two instances of frustration which is when a contract to do an act becomes impossible or illegal. Here, the contract does not merely become voidable but is brought to an end forthwith and automatically as the Government introduces legislation preventing antiques from Malaysia to be exported, therefore this contract is void - Hirji Mulji v. Cheong Yue Steamship Co. Ltd. Void contract is defined in Section 2(g) of Contracts Act, 1950 as an agreement which is not enforceable by law. It gives rise to no rights or obligations.

6. Void Contract is defined in Section 2(g) of COntracts Act, 1950 as an agreement which is not enforceable by law. It gives rise to no rights or obligations. Under Section 21 of COntracts Act, 1950, the contract made by mistakes is automatically become void. Illegal contract is void under Section 24 of COntracts Act,1950.

Voidable contract is defined in Section 2(i) of COntracts Act, 1950 as an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others. Contract made under coercion is voidable under Section 15 of COntracts Act, 1950 ; Contract made under undue influence is voidable under Section 16 of COntracts Act, 1950 ; Contract made under fraud is voidable under Section 17 of COntracts Act, 1950 ; Contract made under misrepresentation is voidable under Section 18 of contracts Act, 1950.

Nov 16, 2007

Old times~~

Sometimes do you ever refresh your old time memories of how your childhood has been??
Too frequent people will be too obsessive with what's going around them and care less for what we called it -a past...
Ya...that's me...

Currently busy living my life...so challenging yet tiresome.
Still..life goes on...but never mind...
Sometimes it just gives you loads of unknown surprises that something reminds you so...

These are something worth sharing...which i got it from an email..


Dont you think it looks like smarties? or M&M?



I used to watch this cartoon...but i forgot the name...^^

Flintstone..little flintson...lalalalala....wakaka...


HOw adorable is it!!



bunny!!
Cinderella story...
Tweety!!!always my favourite...
Oh my...it looks so cute...looks so cup-caked!!
By the way...all these are edible...yup!!you are not mistaken...it is edible...
because
there are all cakes!!!

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