12/6/2019 BBUN2103 - SELF TEST FINAL

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Dashboard My courses BBUN2103 Quiz BBUN2103 - SELF TEST FINAL
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Started on Friday, 6 December 2019, 4:00 PM
 State Finished
Completed on Friday, 6 December 2019, 4:13 PM
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Time taken 13 mins 43 secs
Marks 10.00/11.00
 Grade 9.09 out of 10.00 (91%)

 Question 1 “Any party who enters into a contract must be aware that they
Correct are bound by the obligations under the contract”.

Mark 1.00 out
of 1.00 What element of a valid contract does the above statement
 refer to?

 Select one:
a. Consideration from both parties

b. Intention to create legal relations  Correct. Intention

to create legal relations is a situation where the parties who
enter into a contract are aware that they are bound by the
obligations under the contract. Refer Sub Topic 2.1.2

c. Certainty of terms

Your answer is correct.

The correct answer is: Intention to create legal relations

Question 2 “The application of English Law shall only be made if there is

Correct lacunae in the local laws and the law applied suits the local
Mark 1.00 out circumstances”.
of 1.00
Which Act provides the above provision?

Select one:
a. The Civil Laws Act 1956  Correct. The Civil Laws Act 1956
provides for the application of English Law if there is lacunae
in the local laws and in so far as the law applied suits the
local circumstances. Refer Sub Topic 2.1.

b. The Sale of Goods Act 1957

c. The Contracts Act 1950

Your answer is correct.

The correct answer is: The Civil Laws Act 1956

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Question 3 What is a voidable contract? 

Correct

Mark 1.00 out Select one:

of 1.00
 a. An agreement which is enforceable by law at the options
of all of the parties to rescind the contract.

 b. An agreement which is enforceable by law at the option

of one or more of the parties but not at the options of the
 other or others.  Correct. An agreement which is
enforceable by law at the option of one or more of the
 parties but not at the options of the other or others is a
voidable contract. Refer Sub Topic 3.3

 c. An agreement which lacks one or more elements of

contract.


 Your answer is correct.

The correct answer is: An agreement which is enforceable by
 law at the option of one or more of the parties but not at the
options of the other or others.


 Question 4 “Nazrah, the managing director of Syarikat Perdana Sdn Bhd,

Correct with intent to deceive Azma into buying shares in her company,
Mark 1.00 out informed Azma that her company has made millions in profits.”
of 1.00
What is the consequence of the contract entered into between
Azma and Syarikat Perdana Sdn Bhd?

Select one:
a. The contract will be valid.

b. The contract will be voidable.  Correct. Voidable

contract is when there is no free consent involves in the
agreement entered into between parties. According the
Contracts act 1950, the elements that can caused a contract
to be voidable are coercion, undue influence, mistake, fraud
and misrepresentation. Voidable contract is a valid contract
until the innocent party chooses to rescind the contract.
Refer Sub Topic 3.4. The agreement between Nazrah and
Syarikat Perdana Sdn Bhd involved the element of fraud
which caused the contract to be voidable. Refer Sub Topic
3.4 .

c. The contract will be void.

Your answer is correct.

The correct answer is: The contract will be voidable.

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Question 5 “Rina was a partner in Rina, Aleeza and Partners, a legal firm in
Correct Jalan Sultan Ismail, Kuala Lumpur. She withdrew from the
Mark 1.00 out partnership and set up her own firm 10 kilometres from her
of 1.00 former office. Before the withdrawal, she made an agreement

with the other partners and a clause, among others, stated that
she will not carry out the same business as the partnership
 within 25 kilometres of the location of the firm for a period of
two years.”

What is the consequence of the above agreement?

Select one:
 a. Only the part that restrains the trade of the agreement
was void, therefore her former partners cannot sue her for
 breach of contract.  Correct. For a contract that involves
clauses regarding restraint of trade, only the part that
 restrains the trade of the agreement is void, therefore her
former partners cannot sue her for breach of contract. Refer
Sub Topic 3.1.2.

b. The whole agreement between Rina and her partners was
 void, therefore her former partners cannot sue her for
breach of contract.
 c. Only the part that restrains the trade of the agreement
was void, therefore her former partners may sue her for
breach of contract.

Your answer is correct.

The correct answer is: Only the part that restrains the trade of
the agreement was void, therefore her former partners cannot
sue her for breach of contract.

Question 6 Which of the following is goods according to S.2 of the Sale of

Correct Goods Act 1957?
Mark 1.00 out
of 1.00 Select one:
a. House

b. Land

c. Shares  Correct. According to S.2 of the Sale of Goods

Act 1957 (SOGA 1957), goods is defined as every kind of
movable property other than actionable claims and money;
and includes stock and shares, growing crops, grass, and
things attached to or forming part of the land which are
agreed to be severed before sale or under the contract of
sale. Refer Sub Topic 4.1. Therefore, shares is goods under
SOGA 1957.

Your answer is correct.

The correct answer is: Shares

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Question 7 What is a hire purchase agreement? 

Correct

Mark 1.00 out Select one:

of 1.00
 a. Agreement for the purchase of goods by installments
where the property in the goods are passed to the buyer
when the full price of the goods are paid.  Correct.

Agreement for the purchase of goods by installments where
the property in the goods is passed to the buyer when the

full price of the goods is paid. Refer Sub Topic 7.1

 b. Agreement for the purchase of goods by installments

where the property in the goods are passed to the buyer
upon delivery of the goods. 

c. Agreement for the purchase of goods by installments
 where the property in the goods are passed to the buyer at
the time of the contract.

Your answer is correct.


The correct answer is: Agreement for the purchase of goods by
 installments where the property in the goods are passed to the
buyer when the full price of the goods are paid.


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Question 8 “Rizal bought a television, washing machine and CD player by

Correct instalment from Han Seng Electrical Sdn Bhd for a price of
Mark 1.00 out RM250, RM200 and RM150 per month respectively. The goods
of 1.00 were purchased by Rizal in January, March and December 2009

respectively. In January 2010, Rizal was able to pay RM500 to Han
Seng Electrical Sdn Bhd. He did not state anything about how
 the payment should be apportioned among the three goods.”

 What is the legal consequence of the above senario according

to the Hire Purchase Act 1967?

Select one:
 a. Rizal may pay the amount of RM500 and the payment
should be divided into equal sum for the television, washing
 machine and CD Player.

b. Rizal breached his duty as hirer. Han Seng Electrical Sdn

 Bhd may start the process to repossess the goods from Rizal.

c. Rizal may pay the amount of RM500 and the payment

 should be made towards the satisfaction of amount of
instalment of the television, the washing machine and the
 CD Player in the order in which the agreement was made.
 Correct. According to S.10 of the Hire Purchase Act 1967, if
 a hirer purchases two or more goods by hire purchase from
the same owner, he is entitled to request payment for such
goods to be distributed according to his ability. If the hirer is
unable to make the total payment, he may require the
owner to appropriate the sum paid by him for one of the
goods, or for any two or more goods as the owner thinks fit. If
the hirer fails to make any such appropriation, the payment
shall be appropriated towards the satisfaction of the sums
due under the respective hire purchase agreements in the
order in which the agreements were entered into. Refer Sub
Topic 7.5.

Your answer is correct.

The correct answer is: Rizal may pay the amount of RM500 and
the payment should be made towards the satisfaction of
amount of instalment of the television, the washing machine
and the CD Player in the order in which the agreement was
made.

Question 9 “The insurer is entitled to enforce any remedy against any third
Correct party who caused the loss to occur”.
Mark 1.00 out
of 1.00 What is the term referred to by the above statement? 

Select one:
a. Material facts

b. Subrogation  Correct. Subrogation refers to a

situation where an insurer is entitled to enforce any remedy
against any third party who caused the loss to occur. Refer
to sub Topic 8.2.

c. Insurable interest

Your answer is correct.

The correct answer is: Subrogation

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Question 10 “Rina receives a bill of exchange which states as follows:

Incorrect
Pay Aida RM1,000 if you are satisfied  with the clothes that you
Mark 0.00 out
received, on 1st March 2010.
of 1.00
 Signed (Azmah)
18/2/2010”. 

In the above case, what is the status of the bill? 

Select one:
 a. Not valid

b. Voidable  Incorrect. According to S3(1) of the Bills of


Exchange Act 1949, a bill of exchange is an unconditional
order in writing, addressed to another, signed by the person
 giving it, requiring the person to whom it is addressed to pay
on demand or at a fixed or determinable future time a sum
 certain in money to, or to the order of, a specified person, or
to bearer. Refer Sub topic 9.1. Voidable means that the party
 may rescind or continue with the contract, however in this
case, there no such options available to the parties as the
 bill does not fulfil one of the characteristics of the valid bill
and therefore the bill is not a valid bill.
 c. Illegal 

Your answer is incorrect.

The correct answer is: Not valid

Question 11 “Intan entered into a contract of sale for computers with Ain
Correct where Ain agreed to provide 10 computers within one week from
Mark 1.00 out the date of the contract for a price of RM1,500 each. After one
of 1.00 week, Ain was only able to provide five computers. Intan
discovered that Ain was acting as agent for Naina Computer
Sdn Bhd.”

What is Intan’s right?

Select one:
a. Intan has no right in this situation as the period of one
week had already expired.

b. Intan may either sue Intan or Naina Computers Sdn Bhd

or both for the failure to provide the computers.  Correct.
According to Illustration of S186 of the Contracts Act 1950, in
the case where the agent did not disclose the existence or
identity of his principal, and act as if he is the principal at the
time he contracted with the third party, the third party is
entitled to take action against the agent, or the principal or
both. Refer Sub Topic 5.6. Therefore, in the above case, Intan
may sue Ain, or Naina Computer Sdn Bhd or both of them for
the failure to provide the computers.

c. Intan may only sue Naina Sdn Bhd for failure to provide
the computers.

Your answer is correct.

The correct answer is: Intan may either sue Intan or Naina
Computers Sdn Bhd or both for the failure to provide the
computers.

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12/6/2019 BBUN2103 - SELF TEST FINAL

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