QUESTION 1

Idris has been awarded a contract to supply a crude palm oil at a price RM1000 per metric ton. Deeva Mills Berhad, an established company will purchase this commodity as per agreed price. An agreement has been signed between Idris and Deeva Mills Berhad. Based on the situation above, please answer the following questions:

a. Analyse the financing facilities that suits to the above situation. (6 marks)

b. Discuss the responsibilities of the parties involved in this contract. (6 marks)

c. Explain the benefit received by Idris if he enters into this contract. (4 marks)

d. Discuss the consequences faced by Idris if he unable to deliver the commodity within the stipulated time. (4 marks)