1.When a subject matter of a contract was destroyed in a natural disaster, the following statements are true to describe the situation EXCEPT: *

2 points

the contract becomes void under Section 57(2) of the Contracts Act 1950

the parties can sue each other to get their remedies

the contract has been discharged by frustration

both parties need to restore any advantage that they have received

2.Which of the following can be a public company limited by shares? *

2 points

Fresh Fruits Corporation Bhd.

Potato & Nuts Sdn. Bhd.

Berries Sdn. Bhd.

Eggplant & Association

3.Which of the following is a valid contract? *

2 points

Plum hires an agent to commit murder.

Pumpkin signed an agreement to lease a house for the rest of her life.

Miss Cherry bought 100 kilograms of cocaine from her friend.

Corn, a 16 years old student, signed a scholarship contract.

4.Cucumber and Apple, the executive directors of Fresh Vege Sdn. Bhd. use the company's money to buy a yacht without obtaining the consent of the general meeting. What are the directors' duties that they have breached? *

2 points

Section 312 of the Companies Act 2016

Section 223 of the Companies Act 2016

Section 248 of the Companies Act 2016

Section 218(1) of the Companies Act 2016

5.Which of the following statement is TRUE to describe a contract of sale of goods? *

2 points

There are three parties in this type of contract; namely seller, dealer and buyer.

It must be in writing.

The contract involves the transfer of property and title to the buyer.

Only the owner of the good can transfer a good title to the buyer.

6.On 14 February 2022, Tan Sri Papaya sent a letter to Miss Fig offering to sell his tablet at the price of RM6,000. In the letter, he mentioned that an acceptance must be made before 25 February 2022 through post. Miss Fig posted her acceptance letter on 23 February 2022 but the letter went missing. Tan Sri Papaya immediately sold the tablet to Miss Ginger on 26 February 2022. What is the validity of contract between Tan Sri Papaya and Miss Fig? *

2 points

The contract is voidable because the letter went missing.

The contract is valid as affirmed in postal rule.

The contract is void because the subject matter has been purchased by Miss Ginger.

The contract is valid based on the case of Carlill v Carbolic Smoke Ball (1893)

7.What is the difference of a contract of sale of goods and a hire purchase contract? *

2 points

Both contracts purport to protect the customers.

A contract of sale of goods can only be terminated if there is a breach by any of the parties while a hire purchase contract can be terminated when there is a breach or when the hirer returns the good to the owner.

A hire purchase contract is more valid compared to a contract of sale of goods.

Both contracts must be made in writing.

8.Guava enters into a hire purchase agreement with Mayfruits Bank for a product from Harvey Furniture. Which of the following is INCORRECT to describe the parties? *

2 points

Guava is the buyer and Mayfruits Bank is the seller.

Mayfruits Bank is the owner and Harvey Furniture is the dealer.

Harvey Furniture is the dealer while Guava may be the owner once he completed the hire purchase instalments.

Guava is the hirer and Mayfruits Bank is the owner.

9.An offer cannot be revoked by ___________________. *

2 points

Section 6(a) of the Contracts Act 1950

Section 6(e) of the Contracts Act 1950

Section 6(d) of the Contracts Act 1950

Section 6(c) of the Contracts Act 1950

10.Which of the following explains the principle of separate legal entity? *

2 points

A company can be formed to commit fraud because the company and its members are regarded as one entity.

The members of the company carry the same debts and liabilities of the company.

A company can have unlimited number of members.

The principle separates the company from its members.

11.Pineapple went to a shop to buy her groceries. She chooses several items from the shelf. She is a/an ____________ and the cashier is a/an ____________. *

2 points

offeror; offeree

offeree; offeror

buyer; seller

promisee; promisor

12.A person who works as a salesman at a shop is able to transfer good title to the buyer in a contract of sale of goods. In law, such person is called a ___________. *

2 points

dealer

employee

mercantile agent

seller

13.Which of the following is a hire purchase agreement? *

2 points

A contract for employment with monthly salary.

A person pays for a computer in full payment.

A person buying a car by loan.

An oral contract to purchase 50 kilograms of sugar.

14.Lettuce wants to hire an agent. Which of the following is TRUE about a principal in an agency? *

2 points

He must be at the age of 18 years

He must have a sound mind.

He must be a man.

He must be a responsible person.

15.Asparagus appoints an agent to assist him in dealing with his clients. He informs his agent that such appointment is valid until 1 May 2022. The agency subsequently will be terminated based on ____________. *

2 points

mutual consent of the parties

the performance of the contract

an event which renders the agency unlawful

the expiration of the period fixed/implied in the contract.