CONFIDENTIAL LW/JAN 2013/LAW486/169

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE LAW OF CONTRACT II

COURSE CODE LAW486/169
EXAMINATION JANUARY 2013
TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of three (3) parts : PART A (5 Questions)

PART B (2 Questions)
PART C (1 Question)

2. Answer all questions in the Answer Booklet. Start each answer on a new page.

3. Candidates are allowed to bring in the following statutes (unannotated):

i) Contracts Act, 1950

ii) Specific Relief Act, 1950

4. Do not bring any material into the examination room unless permission is given by the
invigilator.

5. Please check to make sure that this examination pack consists of:

i) the Question Paper

ii) an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages

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CONFIDENTIAL 2 LW/JAN 2013/LAW486/169

PART A

QUESTION 1

Explain the meaning of 'fundamental breach' and its effect on an exemption clause.
(6 marks)

QUESTION 2

Alias agreed to transfer a Malay Reservation Land to Ramu for RM58,000. Ramu, a non-
Malay, paid RM20.000 as an advance and the balance was payable upon transfer of the
land. Ramu subsequently realised that the law prohibits the sale and transfer of such land.
He demanded the return of the RM20.000 paid, but Alias refuses to do so.

Advise Ramu whether he could recover his money.

(6 marks)

QUESTION 3

Explain the rule on self-induced frustration with reference to decided cases.

(6 marks)

QUESTION 4

Describe the application of section 91 and 92 of the Evidence Act 1950 in relation to contract
law in Malaysia.
(6 marks)

QUESTION 5

Kanna promised Shanty that he will transfer his bungalow house in Shah Alam to her
daughter, Suzy upon her marriage to his son, Jimmy. Jimmy, however, died in an accident
before the wedding ceremony. Can Suzy sue Kanna and insist that the said bungalow be
transferred to her?
(6 marks)

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CONFIDENTIAL 3 LW/JAN 2013/LAW486/169

PARTB

QUESTION 1

Nina who was getting married, went to Jowan, a popular fashion designer. He agreed to
design and deliver an elegant white baju kurung, studded with pearls and crystals for the
akad nikah ceremony and an ivory lace wedding gown 'ala Kate Middleton' for the reception
at the Royal Chulan Hotel. When she went for the fitting session, Nina discovered that the
baju kurung was plain with no pearls or crystals. The wedding gown was, however, too big
and the design was similar to Kim Kardashan's wedding dress. She refused to take delivery
of the clothes or pay for it and Jowan threatens to sue her.

Discuss Nina's and Jowan's legal positions under the law of contract.
(20 marks)

QUESTION 2

AXA Sunrise Sdn Bhd is a company that specializes in event management. On January
2011 the company had leased 2 bungalow houses at Bukit Pariaman, Selangor which
were owned by SAKTI Property Development for a 5 years period. The bungalows were
to be used for the staff and company's business activities. The rental cost was a total of
RM150,000 per annum payable on 15th January of the respective year. Unfortunately,
storm and floods in recent years had weakened the buildings' earth structure. On 1 s t
June 2012, the houses were destroyed when the hill slope behind them collapsed after
heavy rain. AXA Sunrise Sdn Bhd wants to find out whether it can recover the rental
payment paid to SAKTI Property for 2012 and whether it is still bound to pay for the
future rental sums.

Advise AXA Sunrise Sdn Bhd on its legal position.

(20 marks)

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CONFIDENTIAL 4 LW/JAN 2013/LAW486/169

PARTC

QUESTION 1

a) Raj entered into an employment agreement with ROTU Senang, a manufacturer of

rubber gloves in Penang as a marketing manager. He agreed that after leaving his
employment with the company, he will not compete against his former employer
either to work or own the same trade as the employer in Malaysia and the ASEAN
region for an immediate period of three years from the date of resignation. After
working for two years, Raj submitted his resignation and set up his own company
dealing in rubber byproducts. Raj has persuaded 3 of the managers to join his
company. ROTU Senang has now discovered that most of its clients have left and
gone over to Raj's company.

ROTU Senang seeks your advice on its rights to enforce the term against Raj.

Advise ROTU Senang.

(15 marks)

b) On 2nd May 2011, Dino Zee, a popular singer, signed a contract to perform a
"Secretaries Week " lunch function for 5 days at Hotel Sayang in Kuala Lumpur. He
received a 25% advance of RM25.000. It was agreed that he would attend rehearsal
for two days before the performance date on 12th May. Dino Zee however came
down with flu on 10th May 2011 and did not attend any rehearsals at all. The hotel
manager, Ms Suzi was unable to contact him as Dino Zee had switched off his
handphone. When he arrived at the hotel at 10am on 12th May, he was informed that
his contract has been terminated. Hetty Es, an Indonesian singer had been signed up
to replace him. He was asked to refund the RM25.000 that he had received earlier.
Dino Zee refused to do so. He claimed that he was ready to perform at the function.
He was, however, barred from entering the premises. The manager, Ms Suzi told him
that the management would initiate a legal action against him. Dino Zee retorted", "II
see you in court".

Dino Zee comes to you for legal advice. Advise Dino Zee on his legal position.
(15 marks)

END OF QUESTION PAPER

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