Question 1

In contract law, damages are meant to put the wronged party in the position it would have been in had the other party followed through on its end of the bargain. This requires the court to examine the contract, what it was worth, and what loss the wronged party suffered. Explain when this remedy of damages will be awarded by the courts with reference to relevant case laws and statutory provisions. (15 marks)

Question 2

In February 2010, Mike borrowed RM300,000 from his uncle, Sabastian, for the purpose of financing his business and he promised to repay the loan in January 2013. However, until now (July 2021), he has not repaid the loan although he has received numerous reminders from his uncle. Last month (June 2021), Sabastian confronted Mike in his workplace and threatened to take legal action to recover the loan. Mike then promised to settle the loan within one week. However, he did not keep his promise. Sabastian is very disappointed and wants to commence a legal action against Mike for breach of contract and recover the outstanding debt. Advise Sabastian on the chances of his success. (10 marks)

Question 3

James went to a shopping mall and wanted to get himself a coat and a suit. He then went into a retail outlet and introduced himself to the owner of the outlet, Zamani that he is the CEO of a public listed company that had been very successful in the past 5 years and generates revenue not less than RM 3million every year. Zamani was very convinced with James and accepted a cheque worth RM 5000 as payment for the items purchased by James. Later that day, Zamani got to know that the cheque given by James was dishonoured by the bank and he realised that

James was an impersonator. Advise Zamani on the possible course of action against James under the law of contract and explain to him what remedies he can obtain. (15 marks)

Question 4

Peter was walking past a lake and saw Pan drowning. Peter immediately jumped into the water and saved Pan. Pan was very touched and delighted by the act of Peter. Pan promised to pay Peter a reward of RM500. A few weeks later, Pan changed his mind and decided not to pay Peter the reward sum of RM500. Peter was very upset and wants to know whether he would be able to obtain the RM500 under the law Malaysian contract law. Advise Peter. (10 marks)