QUESTION 1

Salmah is in the process of expanding her bakery and pastry business. For that purpose, Salmah acquires a new electrical oven through a hire purchase agreement with Noraini's Electrical Store for a duration of 24 months. With reference to the Hire Purchase Act 1967, discuss Salmah's position in the following circumstances: -

a. Salmah wishes to let her sister Maryam continue with the hire purchase agreement of the electrical oven after paying the instalments for 5 months. (10 MARKS)

b. Salmah wishes to know the current financial status of the hire purchase agreement from Noraini's Electrical Store after paying the instalments for 5 months. (10 MARKS)

QUESTION 2

'The company is at law a different person altogether from the subscribers to the memorandum.' Per Lord Mcnaghten in Salomon v Salomon & Co Ltd [1897] AC 22.

With the aid of the above and other cases, explain the concept of separate legal personality of a company and the exceptions to it. (20 MARKS)