Question
QUESTION 1-------------------- Ali is a dealer in second-hand goods. He seeks your legal advice on the following matters. Ali entered into a contract with Ben
QUESTION 1-------------------- Ali is a dealer in second-hand goods. He seeks your legal advice on the following matters. Ali entered into a contract with Ben for the purchase of an old grandfather clock from Ben for RM200. Ben has since refused to sell the clock to Ali, stating that the price is too low and that the actual value of the clock is RM2,000. Besides that, Ali contracted with Ashley, aged 16, to sell him a vase for RM15,000. Ashley has refused to honour the contract, stating that it is void. Explain whether Ali has the right to purchase the clock at the agreed price of RM200 and whether the contract between Ali and Ashley is void. (Confine your answers to the law of contract).
QUESTION 2 ------------ Gates owns a shop in Kuala Lumpur. The shop sells various types of internet mobile phones. Last week, new stocks of internet mobile phones arrived from the United States (US) and an East Asia country (East Asia). The internet mobile phones from US were the original "Orange Phone" product, while the ones from East Asia were not, though the features looked alike. Harry visited Gates's shop and selected an internet mobile phone that was priced RM1,800/-. Harry thought it was of the latest model "Orange Phone V.4" and US made. Gates knew that the internet mobile phone was not an original "Orange Phone V.4". He packed the phone into a plain white box, looked at the price tag and accepted payment from Harry without saying anything. The internet mobile phone that Harry bought turned out to be made in East Asia, worth only RM900/- in the market. The next day, Harry wanted to return the phone. He claimed that Gates had a duty to tell him the truth and that the price on the phone he bought indicated fraud on Gates's part. Discuss. (Confine your answers to the law of contract)
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