Contract Law and Commercial Disputes: Legal Principles and Case Analysis

Part A (40 Marks)

QUESTION 1

Describe the basic elements of a valid contract. ( 10 marks )

QUESTION 2

Jen started work at DEF Sdn Bhd on 12th January 2020. Due to his good
performance, he was promoted as the Human Resource Manager and was
drawing a monthly salary of RM5,000. In June 2023, the accountant of ABC
Sdn Bhd, Smith had reported to the General Manager that Jen had
misappropriated the company’s funds.
The General Manager immediately sent a letter to Jen terminating his
services. Jen denies all the allegations against him and alleges that the
accountant, Sih has set him up.

Advice Jen on the following issues:

(a) Whether the company can immediately terminate Jen’s services.
( 5 marks)

(b) What is the appropriate court to hear Jen’s matter and who has the
burden of proof in Jen’s case? ( 5 marks)

(c) Assuming Jen wins his case : How much would he get and what are
the other remedies available for him? (20 marks)

Part B (60 Marks)

Instruction : Answer any THREE (3) questions only.

QUESTION 1

Mr and Mrs Albert who were on touring holiday, arrived at a Resort and
booked in for a night. As they wished to leave early the next day, they paid
the resort bill in advance. On being shown to their room they found in it
printed notice that the resort will not be liable for articles lost or stolen
unless handed it for safe keeping.

Having unpacked they locked the room and handed the key in at the
reception desk. While the couple were having meal in the restaurant Mrs
Albert’s valuable pearl-necklace was stolen from the locked room by a thief
who had obtained the key from the reception desk.

Has Mrs. Albert a claim against the resort? (20 marks)

QUESTION 2

(i) Thina and Govi are partners in a garage and service station and
they have a written agreement which provides that Thina is to
subscribe the capital and Govi is to act as manager of the garage.
Govi agreed, specifically, that he would not engage in buying and
selling of second-hand cars.

In breach of this agreement, Govi has bought a second-hand car
from Flores and has not paid her. Flores threatens to sue Thina
as she is aware that he is the partner with substantial personal
assets. Advice Thina. ( 12 marks )

(ii) State 4 grounds for Dissolution of a partnership. ( 8marks )

QUESTION 3

(i) Discuss the case of Solomon v Solomon & Co and the Malaysian cases which had followed the principle in Solomon v Solomon & Co case. (10 marks)

(ii) When will the court lift the corporate veil? (10 marks)

QUESTION 4

Ian instructed Ruger to store 100 sacks of garlic in Ruger’s warehouse until
he could find a buyer for them. Three days later Ruger, discovered that the
garlic were beginning to rot. Ruger tried to contact Ian but was informed
that he was out of town and could not be reached.

Ruger later sold the garlic to the local people below market price. Ruger
intends to claim from Ian for the expenses incurred by him.

Advice Ian. (20 marks)

QUESTION 5

Discuss the statutory provisions which provides protection for consumers
under the sale of Goods Act 1957. Your answers should be supported by
case laws. (20 marks)

Answer

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