Clara, aged 16, was offered a scholarship to study in a local university by Petronas. Upon her completion she was to work for Petronas for 5 years. After a year, she ordered some bedroom furniture from Ikea. She refused to pay for them after it was delivered. Ikea took legal action against her. Upon completing the course, Clara worked for 3 years and resigned. Petronas claimed the return of the sum of RM100,000 from Clara. In both situations Clara claimed she was a minor at the time the scholarship agreement was entered into and the purchases made.

Advise Ikea and Petronas:

(i) whether there is a contract between them and Clara by referring to the Contracts Act 1950 and relevant cases. You are required to discuss the elements of contract i.e. a) offer; b) acceptance; c) intention to create legal relations; e) consideration and d) capacity in your answer and

(ii) whether Ikea and Petronas can recover the monies from Clara by referring to the relevant

section of the Contracts Act 1950.