FACULTY OF BUSINESS & ACCOUNTANCY

TEST (15%)

COURSE : BUSINESS LAW (PLS 2313)

LECTURER : MS. FARAH ADIBAH BINTI ZULKIFLI
CLO 2 : Demonstrate the relevant principles of law and legislations relating to law of
Contract and Agency in the real business context.

Please fill in the following particulars:

NAME : NURALIA HUDA BINTI MOHD SAHARUDIN
MATRIC NO : 4203000721
GROUP : 1

QUESTION:

Susan and her family made a plan to go to Pulau Langkawi for holiday. As they need a car to go to
the interesting places in Pulau Langkawi, she booked a Honda City car through carrental.com website.
In her booking confirmation, it stated that the rental company will provide her with a 2019-model
Honda City car from 30th January 2021 until 2nd February 2021 in exchange of RM400.00 as rental
fee. In order to confirm her booking, Susan had paid deposit amounting to RM100.00 which was duly
received by the rental company.

When they arrived at Pulau Langkawi on 30th January 2021, Susan was dismayed when she was
informed by the representative of the rental company that Honda City car was not available. Instead,
they provided her with a 2019-model Perodua Myvi. She refused to accept the car because it was too
small and cannot fit all their family members with their luggage. She wanted to rescind the contract
and demanded the company to return her deposit. The company refused to do so, stating that the
deposit was non-refundable. Advise Susan on the followings:-
 (a) Whether there is a valid contract between Susan and the car rental company
(12 marks)
Undue influence. Unnecessary impact. Section 16 of the agreement act 1950. An agreement is said
to incorporate yet unjustifiable impact where the relationship that exists between the gatherings is one
of the gatherings is in a situation to overwhelm the desire of the other party and utilize that situation to
acquire an uncalled for advantage. This issue should be visible where the rental organization will give
him a 2019 model Honda City vehicle from January 30, 2021 to February 2, 2021 in return for
RM400.00 as rental installment. In any case, the organization wouldn't do as such, it was non-
refundable to express that the store.

Mistake. Section 21 of the contract Act 1950 were both the gatherings to an understanding under a
mix-up with regards to a self evident reality crucial for understanding , the understanding void. Section
22 of the Contract Act 1950 an agreement isn't voidable on the grounds that it was brought about by a
misstep with regards to any regulation in force in Malaysia yet botch as a regulation not force in
Malaysia has a similar impact as a slip-up of reality. Section 23 of the Contract Act 1950. An
agreement isn't voidable simply on the grounds that it was made by one of the gatherings it being
under a slip-up regarding a self evident truth. She booked a Honda City vehicle through carrental.com
site. In her booking affirmation, it expressed that the rental organization will furnish her with a 2019-
model Honda City vehicle from 30th January 2021 until second February 2021 in return of RM400.00
as rental expense. To affirm her booking, Susan had paid store adding up to RM100.00 which was
appropriately gotten by the rental organization. At the point when they showed up at Pulau Langkawi
on 30th January 2021, Susan was terrified when she was educated by the delegate regarding the
rental organization that Honda City vehicle was not accessible. All things considered, they furnished
her with a 2019-model Perodua Myvi. She wouldn't acknowledge the vehicle since it was excessively
little and can't fit all their relatives with their baggage. She needed to repeal the agreement and
requested the organization to return her store. The organization wouldn't do as such, it was non-
refundable to express that the store.

Misrepresentation. Section 18 of the Contract Act 1950 the positive assertation in a way not justified
NY the data of the individual making it, of what which isn't correct, however she/he trusts it to be valid.
The fundamental different among mispresentation and extortion is the individual making the portrayal
doesn't himself trust in its reality anything on the off chance that distortion he might trust the portrayal
to be valid.

Fraud. Section 17 of Contract act 1950. Extortion incorporates any of the accompanying
demonstrations committed by involved with an agreement or with his intrigue or by his representative
with goal to hoodwink another party

In conclusion, Susan can get her deposit back because the contract is voidable. The company should
be punished and refund Susan's money
 (b) Whether the act of the company providing a different car to Susan constitute a breach of condition
which allows Susan to rescind the contract
(3 marks)
Yes, It is a breach of terms that allows Susan to cancel the contract. This is because in the
confirmation of his reservation, he states that the rental company will give him a 2019 Honda City car
from January 30, 2021 to February 2, 2021. This is a real fraud where what you order, other things
you get.