Question 3

Answer the following questions based on Malaysian law of contract

a.

Safiah receives an email from a book company informing her of their latest online books and

inviting her to browse through their newly released novel on a one-month trial. A cOver letter stated that while the company is sending the first copy free of charge. customers have to send a reply stating that they do not wish to subscribe to the anline books. If the company receives no reply, they will assume that the customer agrees to be a subscriber and will be charged RM 145 for a minimum of one year subscription. Due to her busy schedule, Safiah forgot about the email altogether until she receives a bill for RM145 from the company the following month. Safiah refuses to pay. However, the company threatens to sue her claiming that she had agreed, therefore they have a contract. Advise Safiah of her rights under the Malaysian Contracts Act 1950

(8 Marks)

b. Harry is setting up a company and wishes to have a website for his business. Harry was introduced to Sharma, a freelance web designer. Shama told Harry that he had designed the websites of several well-known companies and showed him some of his works. Harry was impressed and decided to sign a contract with Sharma. A few days later, Harry was speaking to a friend who happened to know Sharma. Harry found out that Sharma's statement that he had designed the websites of the companies was not true and Sharma is actually a scammer. Discuss whether Harry can cancel his contract with Sharma.

(6 Marks)