The New Zealand government had offer scholarship worth RM150,000 to any Malaysian student selected by University of Excel. After several stages of interview, University of Excel had chosen Francesca to receive the scholarship to further her undergraduate studies in University of UQ in New Zealand. The scholarship agreement provided that she must complete 4 years of Bachelor of Arts at that university and upon completing her study, she must return to Malaysia and work as a lecturer at University of Excel. After completed her study, she refused to work as a lecturer at University of Excel because she received better job opportunities with renowned university in New Zealand and intended to settle there. The university take action against her while she argues that there is no contract as there is no consideration given by University of Excel. Discuss whether there is a valid consideration in the above situation.

format example :

Issue

Whether Justin can compete with the firm?

Law

Section 32 of the partner act of 1961. If a partner engages in a similar business that competes with the company's business without the consent of the other partners, he must surrender all profits and proceeds from that business to the company.

Case law: Bentley v Craven

Fact: The purchase of raw sugar was entrusted to a partner (also an agent) in a sugar refinery firm. He did, however, trade sugar commodities on his own account. In this way, he purchased the sugar at a staff price and sold it to the market at a market price. Simultaneously, he sold sugar from his own stock to his firm at market rates, without disclosing his interest.

Held: The court determined that there had been a breach of duty. As a result, the principal could either cancel the partner's contract or allow him to account for the profits while keeping the sugar.

Application

Justin, Jojo, and Julia formed a partnership to sell blouse and the firm is called Uniqujo in Bangsar. Last month, Justin saw a new sewing machine at the Mines Exhibition Centre, and he signed the order form with the dealer of Benang Sdn Bhd to buy five sewing machines which costs RM5000. Justin also set up another blouse shop in Petaling Jaya and persuade Uniqujo's existing customers to try her shop. In this case Jojo and Julia also discovered that Justin is operating another similar shop in Petaling Jaya. It is indicating justin is a partner in Uniqujo but operating a similar shop (just blouse) which is competing to the partnership (Uniqujo) without the consent of jojo and julia.

Conclusion

The firm (just blouse) was operated by justin cannot be compete with the partnership.