Jan 2016

Question 1

Mark was desperately looking for a human resource manager for his office. As there were no suitable candidates, he decided to ask his mother, Mabel, to work as the temporary human resource manager at his office. She requested for a monthly salary of S$2,000 and carefully discussed with Mark about the working hours and job responsibilities. In addition, she wanted her salary to be paid directly to a charity that she had founded. Mark agreed verbally. However, in her excitement at starting work, Mabel forgot to sign an employment contract.

At the end of the month, Mark refused to pay Mabel. He claimed that she was only doing him a favour and hence, he was "not legally obliged to pay" her any monies. He also noted that there was no written contract to bind both of them.

Explain to Mabel whether there was a valid contract formed. In your analysis, you should discuss the four (4) elements of a valid contract. Conclude whether Mabel can enforce Mark's promise to pay the S$2,000 as monthly salary to her charity. (25 marks)

Question 2

Consider your organisation (or one with which you are familiar).

1. (a)Identify, and briefly describe the business of the organisation. Describe a situation where you could act as an agent for that organisation. The description should contain relevant details that would support your analysis, including the tasks assigned to you as an agent. (5 marks)
2. (b)Identify and explain two (2) different types of authorities which you may possess as an agent, for the purposes of establishing a valid contract between the organisation and the third party. For the purposes of this question, agency arising from the operation of law should not be discussed. It is important to support your analysis with relevant examples, based on the situation that you describe. (20 marks)