Question 1

Elena and Natalie were interested in baking cakes and selling them. They formed a partnership called- 'Yummy for Tummy Cakes' and served cakes and biscuits for the locals in their housing area. As they were lacking capital for their business, they requested Elena's cousin, Lina to invest in this business. Lina agreed and gave them RM30000 on the basis that she gets RM3000 per 3 months as a return for the investment. Another condition is that Elena and Natalie should update Lina on the partnership's transactions annually. However, Elena and Natalie failed to give Lina the returns and also did not update Lina on their partnership's accounts.

(Based on the above situation):

a) Does a partnership exist between Elena, Natalie, and Lina? Discuss and support your answer with relevant principles of law.

b) If a partnership exists between Elena, Natalie and Lina, discuss the ways in which a partnership can be dissolved.

c )Analyse the characteristics of partnership with appropriate examples and case laws.

Question 2

WomenPower Ltd (WPL) sells sewing machines on hire-purchase. Mrs. Siti, a housewife bought a brand-new sewing machine from WPL on hire-purchase. Upon receiving the machine, Mrs. Siti tried sewing a dress for her daughter. The machine actually made holes on the cotton cloth and she could not continue sewing the dress.

Based on the above situation

a) Advise Mrs. Siti as to her rights under the hire-purchase law.

b) Define a hire-purchase agreement and the formation of the agreement under the Malaysian hire-purchase law.

c) Analyse the fundamental differences between a hire-purchase sale and conditional sale under the hire purchase law.