MHB4033CommercialLaw S22010/2011GroupPresentation

TOPICS FOR GROUP PRESENTATION

1. On 31 July 2008, Izzah entered into a written agreement to borrow RM30, 000
from Naily to start her own bakery business. Izzah promised to pay back the sum
after one (1) year. Six months later, Izzah’s business is not making any profit
and Naily seeing Izzah’s business facing financial difficulty, informs Izzah that
she only needs to pay her (Naily) RM15 000 as full settlement of the debt. Izzah’s
father pays Naily the RM15, 000. One year later, Izzah’s business is doing well
and Naily is demanding payment of the balance amount of RM15, 000. Naily
claims that one year has passed and her debt is due.
Advise Izzah on the position under Malaysian law and English law.

2. Hafiz, a 17 year old student who scored 12As in SPM is offered a scholarship by
the State government of Selangor to further his study in United Kingdom. Before
giving his decision, he comes to you for advice. Advise him on the status of the
contract.

3. SIC contracts with Petronas for the supply of 10 000 litres of unleaded petrol at
RM2 per litre to be used in a space mission programme of SIC for its shuttle
ONE. Petronas knew that the petrol must be unleaded for the space mission. The
shuttle was to repair the SIC space station and to conduct special tests for
Malaysian government. There was a clause in the contract that in case of breach
by either party, the innocent party shall be entitled to claim for RM500 000 in
damages. Petronas failed to supply the agreed quantity of petrol to SIC and the
space mission was in danger of cancellation. The Malaysian government sent a
notice to SIC threatening to sue SIC for breach of agreement because it had
made all payments to SIC for conducting the tests. SIC arranged 10 000 litres of
leaded petrol from Shell at RM5 per litre and also had to unlead it itself which
cost them another RM10 000. The space shuttle was then sent to space
successfully. SIC intends to sue Petronas for the breach of contract. Advise SIC.
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4. Arif had entered into a hire purchase agreement with MyBank for the purchase of
his new car on 10 September 2009 for the period of 9 years. Recently, he faced
some financial difficulties and failed to make installment due on August and
September 2010. On 12 November 2010 he received a notice in Fourth Schedule
from the bank giving him 21 days to pay for the arrears failure which the bank will
repossess the car. However on 19 November 2010, 3 men came to his house
and alleged that they had been instructed by the bank to repossess the car from
him. He had no choice but to surrender the car to the 3 men. He was worried
over his position and came to you for advice.
Advise Arif.

5. Puan Rohana is partner in a firm. Last month she drew a cheque for $200
payable to bearer to be given to one of the firm’s clients. The sum was stated in
figures but not in words. Brian, his employee misappropriated the cheque and
altered the figures to read $1200 and wrote in the appropriate words before
cashing the cheque at the bank. Last week she found out about the
misappropriation and had consulted the bank about the matter and wanted to
recover the money which had been paid to Brian. Brian had since disappeared.
Advise the bank.

6. On 2 December 2010, Kamal appointed Aini as his agent to sell his (Kamal’s) land
in Bangi. On 25 December 2010 Aini entered into a written contract, as Kamal’s
agent, to sell the land to Nora. However, Aini and Nora did not know that Kamal
had died on 23 December 2010. They found out about Kamal’s death 2 weeks
later after been informed by Kamal’s widow.
Advise the parties.

7. Seri had entered into a contract of life insurance with Prudential on 1 April 2010
through an agent, Lim. She had submitted the proposal form and paid the first
premium on the same day. A receipt was issued acknowledging the payment but
there was a condition on the receipt to the effect that the contract of insurance
MHB4033CommercialLaw S22010/2011GroupPresentation

shall not take effect unless and until a policy was issued to the insured. On 6 April
2010 Seri had involved in a traffic accident and died due to serious head injury.
Her father had applied to the insurance company for the insurance benefits but the
application was rejected on the ground that there was no contract of insurance
between Seri and the company since a policy has not been issued to her on the
day she died.
Advise Seri’s father.

8. Puan Sharifah is the owner of Kedai Runcit Kami. She had entered into an
agreement with Sedap Sdn Bhd for the supply of 3000 packs of muffins on the
following terms:
1. The muffins are to be packed in boxes of 10 each.
2. The muffins are chocolate and vanilla flavours.
3. Delivery is to be made in three monthly instalments, not later than the 4 th of
each month.
4. Price, which is to be determined from time to time, is payable after each
delivery.
The first delivery was made without any problems. However, in respect of the
second delivery, there was a delay of a few days. Besides that, the packaging of
the goods was not in accordance with the contract. Some of the boxes contained
only 9 muffins. Despite all these, Puan Sharifah accepted the delivery because
there was a great demand from the customers for the products especially for Hari
Raya Aidiladha. The third delivery was made within time but the goods were mixed
with muffins of orange and pandan flavours. Puan Sharifah did not realize this until
a month later when she received the last instalment delivery. As for this last
consignment the parties were not in agreement as to the price of the goods, and
although the consignment had been accepted, the price still remains unpaid.
Discuss the rights and liabilities of Puan Sharifah and Sedap Sdn Bhd.

9. Kaya Raya Berhad is the name of a company that runs a financial business. Its
Chief Executive Officer (CEO), Mr. Henry wants to register the company as a
MHB4033CommercialLaw S22010/2011GroupPresentation

bank. He consults you as to the statutory requirements of a bank in Malaysia

under Islamic Banking Act 1983, Banking and Financial Institutions Act 1989 and
Central Bank of Malaysia Act 2009. Advise him accordingly.

10. Pak Mat wants to give his land to his daughter, Lina for her 22nd birthday. As Lina
will not be paying any money to her father, her father is worried that since there is
no consideration for the transfer of his land to Lina, the transfer may be void by
virtue of section 26 of the Contract Act, 1950. Advise Pak Mat.

GROUP PRESENTATION

Students are required to adhere strictly to the following instructions.

1. Each group shall consist of six (6) students only.
2. Each group must choose one topic for the presentation.
3. Students are required to present the topic on the date to be determined later
(during tutorial).
4. The time allotted for presentation is 15 minutes plus 5 minutes for question and
answer session.
5. This group presentation carries 10 marks.

Prepared by:
SURIANOM MISKAM
Jan 2011