QUESTION 1

(a) Explain the extent of the application of the English common law and the rules of equity as applied in Malaysia today.

b) In relation to the law of contract:

(i) Explain the meaning of the terms 'intention to create legal relations between the parties"

(ii) Explain the implication of the element of "certainty" to a contract.

c)Briefly explain 'damages' as one of the important remedies available for breach of contract.

d) In sale of goods, the general rule is that, no one can give a better title than he has himself:

(i) Explain the general rule above;

(ii) State three exceptions under this rule.

QUESTION 2

(a) List six (6) exceptions to the general principle that an agent cannot delegate the authority given to him by his principal.

(b) Amat, an agent was authorised by Chong to buy a consignment of rice at the price of RM3.00 per kilogram. During the purchase, Amat came across a better quality rice which was priced at RM3.50 per kilogram. Without further informing Chong, Amat decided to purchase the better quality rice although the price is higher than that authorised by Chong. His intentions were so that Chong would be able to resell the rice at a higher price and make more profit. Amat made arrangements for the purchase under his own name. Chong however, failed to take delivery of the rice and the seller sues Amat for breach of contract. Advise Amat whether he (as an agent) may claim from Chong with regards to the claims made against him by the rice seller