BMLW5103/SEPT14/A-RR

OUM BUSINESS SCHOOL

ASSIGNMENT SUBMISSION AND ASSESSMENT
_________________________________________________________________________
BMLW5103
BUSINESS LAW
SEPTEMBER 2014
_________________________________________________________________________
INSTRUCTIONS TO STUDENTS
1. This assignment contains question that is set in English.
2. Answer in English only.
3. Your assignment should be typed using 12 point Times New Roman font and
1.5 line spacing.

4. You must submit your hardcopy assignment to your Facilitator and ONLINE via the MyVLE. Refer to the portal for instructions on the procedures to
submit your assignment on-line. You are advised to keep a copy of your
submitted assignment and proof of the submission for personal reference.
Your assignment must be submitted on 14 16 November 2014.
5. Your assignment should be prepared individually. You should not copy another
persons assignment. You should also not plagiarise another persons work as
your own.
EVALUATION
This assignment accounts for

60% of the total marks for the course.

BMLW5103/SEPT14/A-RR

ASSIGNMENT QUESTION

PURPOSE
To evaluate students understanding on the elements which effect free
consent in a contract and the formation and dissolution of a partnership.
REQUIREMENT
Students have to answer ALL QUESTIONS and justify their answers with
correct provisions under respective statutes, relevant precedents and case
laws which connote to the correct answers.
QUESTION 1
a)

In simple language, a misrepresentation is a representation that is

untrue. It is a false statement made by one party to the contract to
the other, before, or at the time of contracting, on which that other
party relied on in contracting.
Per Abdul Malik Ishak J. in Travelsight (M) Sdn Bhd & Anor v Atlas
Corp Sdn Bhd [2003] 6 MLJ 658.
With reference to the Contracts Act 1950 and relevant cases,
discuss the circumstances and elements of misrepresentations
which cause a contract to be voidable.
[15 marks]

b)

On 4 March 2014, Ahmad, an antique collector, entered a contract

for the purchase of an antique watch, which was described in good
faith, by Farisham, the seller, as more than 100 years of age. Ahmad
paid the deposit of RM10 000 out of the total price of RM 50 000 and
promised to pay the balance within one week. On 6 March 2014,
while attending an auction for antiques, Ahmad met Yatt, who told
him that she was the person who sold the antique watch which she
inherited from her father, to Farisham. Yatt told Ahmad that the
watch is not very old as her father bought the watch on the day that
Malaysia got its independence, i.e. on 31 August 1957. Ahmad was
very disappointed with what Yatt told him and immediately sent an

BMLW5103/SEPT14/A-RR

e-mail to Farisham which stated that he intended to terminate the

contract which he entered with Farisham on the ground that there
was a misrepresentation of fact. Ahmad also wanted to claim back
the RM 10 000 of deposit which he has already paid to Farisham.
Advise Farisham.
[15 marks]
[TOTAL: 30
MARKS]

QUESTION 2
Raju and Kamala set up a consultancy firm under the name of Expert
Consultancy in June 2000. The partnership agreement clearly stated that
the partnership shall remain for a ten year period. In December 2010,
Kamala took a personal loan amounting to RM100,000 from Bank Business
but failed to pay three installments. Kamala later assigned her interest in
the firm to Bank Business. Raju was not happy with the assignment and
gave a notice to Kamala for dissolution of the firm. Raju decided that if
Kamala refused to accept the notice, he would apply for dissolution by a
court order.
Discuss:
a)

The right of Kamala to assign her interest in Expert Consultancy to

Bank Business.
(10 marks)

b)

Discuss the ways for dissolution of a partnership. What are the

grounds that Raju could use to apply for dissolution of partnership
by way of courts order?

Dissolution by expiration or notice

34. (1) Subject to any agreement between the partners, a partnership is dissolved
(a) if entered into for a fixed term, by the expiration of that term;

BMLW5103/SEPT14/A-RR

(b) if entered into for a single adventure or undertaking, by the termination of that adventure
or undertaking; or
(c) if entered into for an undefined time, by any partner giving notice to the other or others of
his intention to dissolve the partnership.
(2) In the last-mentioned case the partnership is dissolved as from the date mentioned in the
notice as the date of dissolution, or, if no date is so mentioned, as from the date of the
communication of the notice.

Dissolution by bankruptcy, death or charge

35. (1) Subject to any agreement between the partners, every partnership is dissolved as
regards all the partners by the death or bankruptcy of any partner.
(2) A partnership may, at the option of the other partners, be dissolved if any partner suffers
his share of the partnership property to be charged under this Act for his separate debt.
Dissolution by illegality of partnership
36. A partnership is in every case dissolved by the happening of any event which makes it
unlawful for the business of the firm to be carried on or for the members of the firm to carry
it on in partnership.
Dissolution by the court
37. On application by a partner, the court may decree a dissolution of the partnership in any
of the following cases:
(a) when a partner is found lunatic or is shown, to the satisfaction of the court, to be of
permanently unsound mind, in either of which cases the application may be made as well on
behalf of that partner by his committee, or next friend, or person having title to intervene as
bynany other partner;
(b) when a partner, other than the partner suing, becomes in any other way permanently
incapable of performing his part of the partnership contract;
(c) when a partner, other than the partner suing, has been guilty of such conduct as, in the
opinion of the court, regard being had to the nature of the business, is calculated to affect
prejudicially the carrying on of the business;
(d) when a partner, other than the partner suing, wilfully or persistently commits a breach of
the partnership agreement or otherwise so conducts himself in matters relating to the
partnership business that it is not reasonably practicable for the other partner or partners to
carry on the business in partnership with him;

BMLW5103/SEPT14/A-RR

(20 marks)
[TOTAL: 30
MARKS]
[TOTAL: 60 MARKS]