ALD 2013-final-May08 - Confident

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					CONFIDENTIAL                                                           ALD 2013 / JANUARY – MAY 2008

1. Which of the statements is NOT TRUE?
   A. Frustration terminates a contract
   B. There are two types of injunction- perpetual and temporary
   C. In Carlill v Carbolic Smoke Ball, the offer was made to one person
   D. Consideration need not come from the promise

2. Which of the following is NOT an element of a contract?
   A. consideration
   B. ratification
   C. intention to create legal relations
   D. capacity

3. When there is a breach of contract the innocent party may claim any of the following
   remedies EXCEPT
   A. ratification
   B. injunctions
   C. specific performance
   D. damages

4. Adams agrees to sell James two hundred tones of oil. However, the type of oil is not
   specifically mentioned .In such a case, the agreement is void for
   A. fraud                                  C. capacity
   B. uncertainty                            D. misunderstanding

5. Maizura was engaged to sing at the Seasons Hotel for two weeks. One day before she was
  due to perform, she met with an accident and was hospitalized for a month.
  What is the effect of the above event on the contract made between the two parties?
   A. void                                   C. valid
   B. voidable                               D. acceptance

CONFIDENTIAL                                                              ALD 2013 / JANUARY – MAY 2008

6. Carlsberg who is 30 years old, was fully drunk when he agreed to sell his new Proton Wira
  to James for RM500.00. Carlsberg can rescind the contract because
   A. he is a minor
   B. terms of the contract are uncertain
   C. there is confusion.
   D. he was of unsound mind

7. The law on negotiable instruments in Malaysia is covered by the
   A. Companies Act 1965
   B. Civil Law Act 1956
   C. Employment Act 1955
   D. Bills of Exchange Act 1949

8. Jack agreed to sell his new car to Gangster after Gangster threatened to injure him. Jack
may rescind the contract later if he wishes to do so. This contract is voidable on the ground of
   A. mistake                                 C. coercion
   B. fraud                                   D. undue influence

9. Simple sold her ring worth RM4000.00 to Cunning for RM550.00. There is a contract
  between them. This is an issue under:
   A. certainty of terms                      C. capacity of contract
   B. inadequacy of consideration             D. free consent

10. A house is put on auction by Ahmad a licensed auctioneer. The reserve price has been
fixed at RM25, 000. Under the law of contract, Ahmad is making
   A. an acceptance                           C. an invitation to treat
   B. an offer                                D. a counter-offer

11. An agency can be created in these ways EXCEPT-
   A. By express appointment                  C. By implied appointment
   B. By termination                          D. By ratification

CONFIDENTIAL                                                         ALD 2013 / JANUARY – MAY 2008

12. The purpose of crossing a cheque is
    A. to give a cheque more value
    B. to signify to the bank that it is a special cheque
    C. to prevent fraud
    D. to make a cheque valid

13. The parties involved in a contract of agency are the
   A. Agent, Principal and Third Party
   B. Agent, Principal and Owner
   C. Agent, Principal and Seller
   D. Agent, Buyer and Seller

14. A cheque that has been in circulation for ten months is deemed to be
   A. An overdue chequ                          C. A bearer cheque
   B. An order cheque                           D. A dead cheque

15. The effect of incorporation of a company is;
    A. it limits the liability of its members
    B. the amount of capital will be reduced
    C. details of the company’s finances can be kept secret
    D. details of the company’s finances cannot be kept secret

16. Under the Hire Purchase Act 1967, the owner can repossess the goods if the hirer
    A. default in two successive payments
    B. default in three successive payments
    C. default in five successive payments
    D. default in ten successive payments

17. Jack offered to sell his car to James for RM 20,000. James however agreed to buy the car
at RM15, 000. James is making
   A. an invitation to treat                    C. a cross offer
   B. an acceptance                             D. a counter offer

CONFIDENTIAL                                                            ALD 2013 / JANUARY – MAY 2008

18. Which of the following is NOT a characteristic of a partnership?
    A. partners agree to carry on a business in common
    B. the sole purpose of a partnership is to gain profit
    C. the firm is treated as a separate legal entity
    D. the firm can only continue for ten years

19. Balfour v Balfour (1919) 2 KB 571 illustrates the general principle that
   A. there is no intention to create legal relations between spouses
   B. husband and wife may agree on a contract if they agree amicably
   C. a husband is entitled to leave his wife to earn a better salary
   D. a husband can marry another wife.

20. Ahmad went to Tesco Supermarket. He wanted to buy a watch at the price of RM400
displayed in the supermarket. He brought it to the cashier’s counter and paid the said price.
The seller in the above situation is making
   A. an invitation to treat and acceptance
   B. an acceptance
   C. an offer
   D. an invitation to treat

CONFIDENTIAL                                                          ALD 2013 / JANUARY – MAY 2008

Section B: Essay (80 marks) Answer Any TWO questions.

1. Article 66 of the Federal Constitution states that the power of Parliament to make laws
shall be exercised by Bills passed by both Houses and assented to by the Yang di-Pertuan
Agong. Explain the process of law making by Parliament.                              (40 marks)

2. The Consumer Protection Act 1999 was passed by Parliament to protect consumers from
unethical business practices by making it a criminal offence for anyone to make false
representations or misleading claims. Recently Ahmad bought a new washing machine for
RM2000.00 from Budget Electrical Shop. After 1 week it is no longer working. . Ahmad
goes to the shop and makes a complaint to have it repaired or replaced. The Budget Electrical
Shop refuses to do anything about Ahmad’s problem and blames Ahmad for damaging it.
What would you advise Ahmad to do?                                                   (40 marks)

3. Free consent is the basis of a contractual relationship and section 10 of the Contracts Act
states that “all agreements are contracts if they are made by the free consent of the parties”
Discuss this statement with reference to cases and the Contracts Act 1950.            (40 marks)

4. Section 11 of the Contracts Act states that “every person is competent to contract who is of
the age of majority and who is of sound mind”. Aminah is a brilliant 17 years old student
received Petronas Berhad scholarship to pursue her studies in petroleum engineering. As
stated in the contract between Aminah and Petronas Berhad, she must serve Petronas Berhad
for a term of 6 years after completing her studies. Aminah’s uncle who owned a petroleum
company proposed to appoint her as one of his managers in his company as soon as she
finishes her studies. Aminah is in a dilemma. Is there a contract between Aminah and
Petronas Berhad?                                                                      (40 marks)

5.   The Hire Purchase Act 1967 was passed by Parliament to confer rights and impose
obligations on both hirers and owners under the hire purchase agreement Edwin bought a car
under a Hire Purchase Agreement from Night Finance Company. Edwin has not paid three
monthly instalments due to financial problems. Explain the procedure to be followed for
repossession of Edwin’s car by the owner.                                            (40 marks)
                                  END OF QUESTION PAPER


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