Answer ALL questions. Each question carries 10 marks. 10. Explain the TWO (2) sources of written law in Malaysia. Discuss with examples the difference between tort and contract. Explain the term \"coercion\" concerning the law of contract. Write a short note about \"mistakes" in a contractual relationship. Explain the following terms in the context of the sale of goods. (a) Condition (5 marks) (b) Warranty (5 marks) Explain any TWO (2) situations where there is no free consent mentioned in Section 14 of Contracts Act 1950. Explain any TWO (2) implied terms under the Sale of Goods Act 1957. Adeline, a sixteen-yearold girl, wants to know whether she can enter into a commercial contract. Advise her as to what type of contract she may enter into legally. Mehinder bought and paid for the last Swatch watch in Mary's shop. However, when Mehinder was looking at other items, Mary's assistant who was not aware of the sale, accidentally sold the same watch to Soo Lee who bought it and left the shop. Discuss who shall be the true owner of the watch and why. The coronation procession of the king was to take place in the rst week of February. Nair entered into a contract with Menon to hire a at for viewing the coronation procession. The procession had to be abandoned on account of the illness of the king. Menon sued Nair for the recovery of the rent. Advise whether Menon will be able to recover the rent. Question 1 - Explain the TWO (2) sources of written law in Malaysia. Discussion - Choose any 2 of the following & briey explain them: - Constitution - Legislation - Subsidiary/Delegated legislation Question 2 . Discuss with examples the difference between tort and contract. Discussion - A contract refers to: - An agreement between two or more people which is legally enforceable by one party against the other. - Action can only be brought if there is an agreement between the parties. - Tort refers to: - A wrong recognised by the courts allowing the aggrieved party to bring a legal action. - Action can be brought even if there is no agreement between the parties. Question 3 - Explain the term \"coercion" concerning the law of contract Discussion . The provision pertaining to coercion is found in 315 CA 1950. . Coercion is the committing, or threatening to commit any act forbidden by the Penal Code or the unlawful detaining or threatening to detain, any property, to prejudice of any person whatever, with the intention of causing any person to enter the agreement. . If there is coercion, then the contract is voidable (.919 CA 1950). . Thus, if any money has been paid or property given by one person to another under the contract here, it has to be returned (.965 CA 1950). Question 4 - Write a short note about \"mistakes\" in a contractual relationship. Discussion 823 CA 1950 mistake by one person 821 CA1950 - mistake by both parties 822 CA 1950 - mistake of law Question 5 - Explain the following terms in the context of the sale of goods. . (a) Condition (5 marks) - (b) Warranty (5 marks) Discussion * 312(2) SOGA 1957 states that a CONDITION . Is a stipulation essential to the main purpose of the contract . The breach of which give rises to a right to treat the contract as repudiated ~ 312 (3) SOGA1957 states that a WARRANTY . Is a stipulation collateral to the main purpose of the contract . The breach of which give rise to a claim for damages but not a right to reject the goods and treat the contract as repudiated Question 6 - Explain any TWO (2) situations where there is no free consent mentioned in Section 14 of Contracts Act 1950. Discussion - Choose any 2 of the following and briefly explain them: - - Coercion (315 CA 1950) - Undue inuence (316 CA 1950) - Fraud (31? CA 1950) - Misrepresentation (318 CA 1950) - Mistake (321, 322 & 323 CA 1950) Question 7 Explain any TWO (2) implied terms under the Sale of Goods Act 1957. Discussion . Choose any 2 of the following and briefly explain them: - . S14 SOGA 1957 . S15 SOGA 1957 . S16(1)(a) SOGA 1957 $16(1)(b) SOGA 1957 . S17 SOGA 1957Question 8 . Adeline, a sixteen-year-old girl, wants to know whether she can enter into a commercial contract. Advise her as to what type of contract she may enter into legally. Discussion Issue What are the types of contract Adeline may enter into legally? . Law and application . S10(1) CA 1950 S11 CA 1950 Age of Majority Act 1971 - 18 years and above Adeline is 16 years old & thus, she is a minor . Contracts involving minors are void (Tan Hee Juan v Teh Boon Keat). However, this law has a few exceptions. A minor can enter into the following commercial contracts i.e. contracts of necessaries . Nash v Inman - 2 elements Goods or services must have been supplied or given to the minor BUT he did not pay for it S69 CA 1950 . Conclusion . The commercial contract a minor can enter into is a contract of necessariesQuestion 9 - Mehinder bought and paid for the last Swatch watch in Mary's shop. However, when Mehinder was looking at other items, Mary's assistant who was not aware of the sale. accidentally sold the same watch to 800 Lee who bought it and left the shop. Discuss who shall be the true owner of the watch and why Discussion : Issue - Who gets a better title? - Law and application - On the facts, Mehinder purchased the watch and paid for it. Thus, the title is with him - Mary's assistant sold the fan without Mehinder's permission to 800 Lee - Mary's assistant cannot do so because according to the nemo gg; rule, no one may give what he/she does not have 27 ale f A 1957 A 1957 - The relevant exception to the nemo gal rule is stated in s30\" 1 QA 1957 which states that 800 Lee will become the owner provided she is a bona de purchaser - Thus, the only way how Soc Lee can get the title is if30111 QA 1957 is fullled - Conclusion - 800 Lee will get the better title provided he is a bona de purchaser Question 10 The coronation procession of the king was to take place in the first week of February. Nair entered. into a contract with Menon to hire a flat for viewing the coronation procession. The procession had to be abandoned on account of the illness of the king. Menon sued Nair for the recovery of the rent. Advise whether Menon will be able to recover the rent. Discussion Issue Can Menon recover the rent? . Law & Application On the facts, since Nair did not perform the contract, he may be liable for breach of contract ($40 Contracts Act 1950(CA 1950)) In order to avoid liability, Nair must prove that the contract was not breached but frustrated. To prove frustration, Budin must fulfil the requirements of s57(2) CA: - Unforeseen - procession was cancelled After - Yes Impossible - no point renting the room If the main reason why Nair rented the room was to view the procession, then the contract is frustrated (Krell v Henry). However, if Nair rented the room for a few reason and one of it does not materialise, then the contract is not frustrated (Herne Bay Steamboat Co. v Hutton). On the facts, this issue is not clear. If Nair can show that the contract is frustrated, then $57(2) CA 1950 states that such a contract becomes void However, ss57(2) and 66 CA 1950 provide for restitutionary remedies i.e. Menon will have to return the deposit if Nair had pay for it . Conclusion If Nair can show that the contract was frustrated, then Menon cannot recover the rent