INSTRUCTION: Answer the question below. Your answer should be supported with relevant sections from Statute of law and Case Law

Question 1:

Hamid and Ali entered into a contract on 1st January 2010 for the sale and purchase of a house located in Putra Heights. In this contract, Hamid agreed to sell the house to Ali for a price of RM 290,000. Ali paid a deposit of RM 50,000 and agreed to pay the balance within three months in equal monthly instalments. Hamid also agreed to transfer the vacant house to Ali two days after the final instalment paid. Ali made the final instalment on 1st April 2010 and claimed to transfer the vacant house. However, Hamid refused to transfer the house by saying that it is, in fact, worth RM 350,000, and thus the price was inadequate. Advise Ali in the legal position of the contract. At the same time, Ali considers opening a bookstore in Putra Heights. He wanted to open a business with his partner Abu. Ali and Abu confused whether they wanted to start a business under Partnership or a company. They need to know about the distinctiveness between Partnership Act 1961 and Limited Liability Partnership Act 2012 in regulating businesses in Malaysia. Advice Ali and Abu on which types of business entities they should open for their business.