1. Azman delivers fresh fruits and vegetables from Kuching to Sri Aman. On the way, he is involved in an accident at Serian. He decides to sell the produce at a lower price at Serian. The produce belongs to Samad. Now Samad wants Azman to be responsible for the loss.

a. What is the legal issue? (1 m)

b. What is the section and Act? (1m)

c. Can Samad hold Azman responsible for the loss? Explain. (3m)

2. Kong is an agent of Song. As an agent of Song, Kong deals with all the payments and all money received on behalf of Song. All these transactions is however not recorded in any book. So Song is angry when Kong fails to provide any proof of these transactions.

a. What is the legal issues? (1 m)

b. What is the section and Act? (1m)

c. What is Kong's duty to Song? (3m)

3. Ali contracts to buy a set of antique story books from Ahmad. The price of the book is RM1000. A week before they could settle the contract, a thief breaks into Ahmad's store and runs off with the books.

a. What is the legal issue? (1m)

b. What is the case law? (1m)

c. Can they still continue and settle the contract? Explain. (3 m)