QUESTION 1

"A promises to pay B RM10,000 at the end of six months, if C, who owes that sum to B, fails to pay it. B promises to grant time to C accordingly". Advise the lawful consideration of the above. (20 MARKS)

QUESTION 2

P entered into a 10-year lease of a warehouse. Thereafter, the local authority closed the only street access to the warehouse because of a dangerous building. The street was to be re-opened after the dangerous building was demolished. Discuss whether P could refuse to pay rent and have the contract set aside on the basis of frustration. (20 MARKS)