Question 1

On the 1st of June 2020, Liam advertised his piano for sale in the local newspaper for RM4,000.

Emma saw the advertisement and called him up. She wanted to buy the piano for RM3,500. Liam told

her to come and see the piano herself.

On the 4th of June 2020, Emma came to see the piano. She really liked it and offered to buy it for

RM3,500. Liam said that he would sell it for RM3,900. Emma then replied that she will think about it.

In the meantime, James came to see the piano and agreed to buy it for RM4,000. However, he wanted

to pay RM1,000 first and the balance of RM3,000 will be cleared a month later, since he did not have

enough money. Liam refused to accept James's payment mode.

Finally, on the 6th of June 2020, Liam's neighbour, Miss Lim wanted to buy the piano for RM3,800

and Liam agreed to sell it to her.

Advise Liam whether the contracts between him and Emma, James and Miss Lim have been formed.

[Total: 25 marks]

Question 2

Colton owned two pieces of land. He had a chicken farm on one land and a rubber plantation on the

other. Colton had been selling chickens and processed rubber for 40 years. Recently, he has entered

into several agreements in preparation for his retirement.

Colton agreed to sell 90% of his stock to Adam for RM80,000. The stock comprised of fairly

new rubber-processing machineries and industrial chemicals, which Colton assured Adam

that it would be useful for processing high grade rubber. Colton told Adam that the purchase

was "truly value for money" and it was below the market price.

Colton also agreed to sell all the rubber trees on his plantation to Ashley, a sawmill owner, for

RM100,000.

Colton agreed to deliver to Matt all his chickens worth RM60,000 in exchange for Matt's

motorcar.

Besides that, the land on which the chicken farm was located would be sold to Jojo for

RM900,000.

Discuss whether the above agreements fall within the contract of sale of goods under the Sale of

Goods Act 1957 ("SOGA"). [Total: 25 marks]