1) Which of the following is a valid consideration under the law of contract?

A. Joko pays Jaa Hat RM50 to beat up the boy who has been bullying Joko's younger brother in school

B. Betty sells a Persian cat to Suzita for RM8,000

C. Khairil offers to pay Luna RM10,000 if she can obtain the secret formula in the ingredient used by Chef Wah in his famous chicken dish

D. Izah agrees to pay Tok Bomoh RM2,500 if he can get rid of the spirits haunting her house

2) Rahul wants to sell his house to Benedict for RM15,000. Rahul did not inform Benedict that the area where the house is situated is prone to heavy flooding. Three weeks after Benedict purchased the house, a storm caused a major flood that submerged the lower storey of the house and damaged most of the furniture there. Benedict claimed that Rahul has cheated him by not disclosing the information about the flood. Has Rahul done anything wrong?

A. Yes, Rahul had led Benedict to believe in something that is untrue

B. Yes, Rahul must disclose all information about the house to Benedict

C. No, Rahul is not liable for the flood which is an Act of God

D. No, Rahul is not required to disclose any information about the house to Benedict as Benedict did not make any enquiry before purchasing the house

3) Specific performance is one of the remedies available to the plaintiff when there is a breach of contract. Which of the following are the factors that the court will consider in determining whether to grant specific performance or not?

i. The adequacy of payment of damages to compensate the losses suffered by the plaintiff

ii. The hardship that may be encountered by the defendant if specific performance is granted

iii. The clarity of the terms of the contract

iv. The financial position of the defendant

A. i, ii and iii

B. i, ii and iv

C. i, iii and iv

D. ii, iii and iv

4) Anjali appointed Walter as her agent to sell her home-made jam. Walter took delivery of 300 jars of the jam and promised to sell them all. On 23 January 2021, Walter made a contract to sell 100 jars of the jam to Laila. Laila paid half of the price and agreed to pay the rest in one week. When Walter contacted Anjali to inform her about the contract with Laila, he was informed that Anjali had died on 19 January 2021.

What is the validity of the contract between Walter and Laila under the law of agency?

A. The contract between Walter and Laila is not valid as the agency was automatically terminated on the day Anjali died

B. The contract between Walter and Laila is not valid as Walter's authority to act for Anjali was revoked on 19 January 2021

C. The contract between Walter and Laila is valid as Walter had been appointed as an agent before Anjali died

D. The contract between Walter and Laila is valid as Walter had authority to act on behalf of Anjali until he had actual notice of Anjali's death on 23 January 2021

5) Which of the following goods is covered by the Hire Purchase Act 1967?

A. A train

B. A helicopter

C. A yacht

D. A tractor