In May 2010, Allen borrowed RM 80.000 from his uncle, Mr Alex, for the purpose of furthering his postgraduate studies in overseas. Allen promised to repay the loan in May 2013. Allen returned from overseas in 2014. However, it is already 2020 and until today he has not repaid the loan. This is so even after Mr Alex had reminded him so many times.

Just few weeks back, Mr Alex came face to face with Allen in a Shopping Mall. Mr Alex informed Allen that he was going to take a legal action. Allen got worried and made a promise orally that he will repay the loan in next few days. Two weeks went past and Allen failed to make the payment as promised. Mr Alex seeks your advice if he can bring a legal action against Allen.

According to the passage above what are the legal issues here present? (7 elements of contract as per Malaysian Law)

Your report format should be as follow:

Explanation on the relevant law(s)

Discussion on case(s) decided by the court that can be used to support arguments

Analyze the application of laws and cases mentioned to the problem given

Conclusion