[ MALAYSIAN BUSINESS LAW ]

*Past year exam question

Description (background)

Juliana is the operator and owner of a small but exclusive restaurant in Kuala Lumpur frequented by the rich and famous. Juliana also provides food for dinner parties at her clients' homes. When she provides food for such parties, she has to close her restaurant for the day. As a result, her charges for the food she provides for these parties are very high.

Anita, the wife of a business tycoon, is planning a dinner for 20 people to which she has invited a visiting dignitary from London. The dignitary has confirmed that he would be pleased to attend the function. To ensurethe success of her dinnerparty, Anita is consideringhiring the famous Juliana to providethe food for the dinner.

During negotiations, Juliana assures Anita that she will cook the food personally in the kitchen of her restaurant and transport it to the dinner location as she takes pride in the quality of her services. Anita is verypleased to hear this and is now certain of engaging Juliana for her services. They then sign a written contract under which Julian is to cater for the 20 diners at RM2,000 per head.

On dinner day, there was a power failure in Kuala Lumpur. Juliana arranges for her friend, Audrey, to prepare dinner in her kitchen in her home in Gombak. The cooked food is then transported to Anita's house in a van which Juliana follows in her car.

On arrival at the dinner venue, Juliana is greeted by a very agitated Anita. Anita knows about the power failure in Kuala Lumpur and wants to know if Juliana has prepared the dinner in the manner shepromised. Juliana explains that the power failure had not been a problem as the dinner has been prepared by her best friend Audrey in her kitchen in Gombak according to her instructions. Anita is furious and reminds Juliana of her promise to prepare the food byherself in her own kitchen. However, Juliana refers Anita to their written agreement which says nothing about it. Thereupon, Anita tells Juliana that she is rejecting the food as it had not been cooked by her personally in her own kitchen as promised. Julianatries to reason with Anita, but the latter is adamant. She insists that Juliana has breached the contract and is therefore terminating the contract.

Question

1. State the issue or issues.
2. Which law or test applies to the issue or issues?
3. Apply the law or test to the facts of the problem.
4. State the result of your analysis.