- Assignment Question :

Alex owns a company called Renovation Sdn Bhd which specialises in renovation and construction

works. Alex received 10 renovation projects across Klang Valley from KBE Housing Bhd for the

month of March 2021 and all of the 10 projects are expected to be completed within 3 months from

the date of signing of renovation agreement. However, due to lack of manpower Alex sub contract 1

Renovation Project at Damansara Utama to Simon Sdn Bhd. Simon Sdn Bhd agreed to the subcontract and gave a quotation of RM250,000.00. Unfortunately, Simon Sdn Bhd had misquoted and

is now demanding an additional RM150,000 as renovation supplies are more expensive especially

during COVID 19 as there was delay in shipment. Alex informed verbally that the they will borne the

additional cost provided that the project is completed before 31st May 2021. The Project completed on

1

st June 2021 and now Simon is demanding for the payment but Alex refuse to make payment.

As of July 2021, all renovation works was complete, and Alex now request for payment of RM2

million from KBE Housing Bhd for all 10 projects. KBE Housing Bhd currently is embroiled in

various legal cases and had engaged Messrs Siti & Co, their lawyers to pay RM1million as full and

final settlement to Alex, Renovation Sdn Bhd. Alex needed the money, cashed in and took the RM1

million to pay all the outstanding payments from all the renovation works that was done. Alex now

come to KBE Housing Bhd for the balance payment of RM1 million but was rejected. Alex now

wants to initiate legal action against KBE Housing Bhd.

Alex also enters into a contract with DEF Sdn Bhd for the purchase of an Office Lot at Subang Jaya.

DEF Sdn Bhd promised that upon signing of the Sale and Purchase Agreement which will be in 3

months time, which will be in July 2021, Alex, will pay the full purchase price of RM10,000 for the

office lot. In March 2021, Alex was notified by DEF Sdn Bhd that they no longer wants to sell the

office lot. Alex felt cheated and devastated over this.

Alex also recently enter a contract with Mr Zack whereby it was agreed that Alex will renovate Zack'

2000 square feet place at Subang Jaya to be a Studio as Mr Zack is an aspiring singer and needs a

studio to record and produce his song. Upon completion Mr Zack said thank you and refuses to make

payment as he said that he is only 16 at the time he enters the contract. Bewildered and confused Alex

felt again being cheated and show the invoice that was signed by Mr Zack.

At the same time Alex is encountering various personal problems. Alex decided to buy a television set

for the price of RM5,000 from Marcus where deposit of RM500 has been paid. The reason why he

intend to buy the television set was to surprise his wife, Lily. However, later Marcus revoke the offer

and return the RM500 on the basis that the market value for the television set was RM7,000 and hence

Marcus do not want to sell to Alex. At the same time, Alex's daughter, Ashley is engaged to be

married to Aaron. Ashely who is only 15 years old had purchased and contracted all the necessary

items for the engagement party costing up to RM100,000. On the engagement day, Aaron did not

showed up and Alex was informed that Aaron do not wishes to proceed with the marriage and had

went oversea with another lady. Alex is furious and felt that he doesn't have to pay RM100,000 since

there was no engagement.

Desperate for money, Alex remembers that he had previously entered a contract with Micheal

whereby he gave Micheal RM100,000 as loan for him to open a gambling shop in KL. Micheal's

business is booming and Alex felt that Micheal have to make payment for the loan. However Micheal

refuses and hired thugs to threatened and assaulted Alex so that Alex will not ask for the money.

Advice Alex in all the relevant legal predicament.

- MARKING RUBRIC- INDIVIDUAL ASSIGNMENT

TASK DETAIL MARKS

Introduction

Students are required to briefly explain the principles of laws and the

objective of this assignment whereby extensive research must be

conducted

Students must include relevant case laws and relevant section for

Definition of Contract, elements, consideration, Intention to legal

relation, illegal contract and etc

/10

Content- (IPAC System)

For Content Component, Student must be able to

i) Understand and identify the key issues that are being asked in

the question;

ii) Cite the relevant case laws and provisions of laws; and

iii) Conduct analysis/ application of the law to showcase

understanding of the principles of law.

Student must critically identify and elaborate in their discussions the

followings:

1. What is the types of consideration

2. Principles of Consideration

3. What is capacity

4. What are the effects of conract entered by a non competent

person

5. What are the exception to the general rule

6. Illegal /Void Contract

Application of the laws discussed shall be made in advising the parties

concern.

/60

Conclusion

Students are expected to give personal view based on the relevant

principles of law on the importance of the element of capacity and

consideration in a contract, repercussion of Illegal Contract as well as explain on the ethical aspect of the elements of contract

Language

Clarity of language, communication and creativity in delivering ideas. /10

References

Proper References /10

Total

Percentage

/100

/30%

Guidelines

Intro- Student to explain briefly what is contract and the elements of contract (with the relevant

sections under the Malaysian Contract Act 1950

Content- Student to discuss all the different IPAC (issue), principle of law, application and

conclusion. Cite as many cases and the relevant case laws. Student can do research on the difference

in law from UK position and Malaysian position (depending on the issue)

Conclusion- Overall conclusion of the assignment by explaining the importance of the elements of

consideration and capacity. Student to also explain on reason why need to enter into ethical and legal

contracts