BMLW5103/USTY/MAY16/A-KK

OUM BUSINESS SCHOOL

ASSIGNMENT SUBMISSION AND ASSESSMENT

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BMLW5103
BUSINESS LAW
MAY 2016
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INSTRUCTIONS TO STUDENTS

1. This assignment contains question that is set in English.

2. Answer in English only.

3. Your assignment should be typed using 12 point Times New Roman font and 1.5 line spacing.

4. You must submit your hardcopy assignment to your Facilitator according to the due date.

5. Your assignment should be prepared individually. You should not copy another person’s
assignment. You should also not plagiarise another person’s work as your own.

EVALUATION
This assignment accounts for 60% of the total marks for the course.
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ASSIGNMENT QUESTION

PURPOSE
To evaluate students’ understanding on the elements which effect free consent in a contract
and the formation and dissolution of a partnership.

REQUIREMENT
Students have to answer ALL QUESTIONS and justify their answers with correct provisions
under respective statutes, relevant precedents and case laws which connote to the correct
answers.

QUESTION 1

a) “In simple language, a misrepresentation is a representation that is untrue. It is a

false statement made by one party to the contract to the other, before, or at the
time of contracting, on which that other party relied on in contracting.”

Per Abdul Malik Ishak J. in Travelsight (M) Sdn Bhd & Anor v Atlas Corp Sdn Bhd
[2003] 6 MLJ 658.

With reference to the Contracts Act 1950 and relevant cases, discuss the
circumstances and elements of misrepresentations which cause a contract to be
voidable.
[15 marks]

b) On 4 March 2014, Ahmad, an antique collector, entered a contract for the purchase
of an antique watch, which was described in good faith, by Farisham, the seller, as
more than 100 years of age. Ahmad paid the deposit of RM10 000 out of the total
price of RM 50 000 and promised to pay the balance within one week. On 6 March
2014, while attending an auction for antiques, Ahmad met Yatt, who told him that
she was the person who sold the antique watch which she inherited from her father,
to Farisham. Yatt told Ahmad that the watch is not very old as her father bought the
watch on the day that Malaysia got its independence, i.e. on 31 August 1957.
Ahmad was very disappointed with what Yatt told him and immediately sent an e-
mail to Farisham which stated that he intended to terminate the contract which he
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entered with Farisham on the ground that there was a misrepresentation of fact.
Ahmad also wanted to claim back the RM 10 000 of deposit which he has already
paid to Farisham.

Advise Farisham.
[15 marks]

[TOTAL: 30 MARKS]

QUESTION 2

Raju and Kamala set up a consultancy firm under the name of Expert Consultancy in June
2000. The partnership agreement clearly stated that the partnership shall remain for a ten
year period. In December 2010, Kamala took a personal loan amounting to RM100,000 from
Bank Business but failed to pay three installments. Kamala later assigned her interest in the
firm to Bank Business. Raju was not happy with the assignment and gave a notice to Kamala
for dissolution of the firm. Raju decided that if Kamala refused to accept the notice, he
would apply for dissolution by a court order.

Discuss:
a) The right of Kamala to assign her interest in Expert Consultancy to Bank Business.
(10 marks)
b) Discuss the ways for dissolution of a partnership. What are the grounds that Raju
could use to apply for dissolution of partnership by way of court’s order?
(20 marks)
[TOTAL: 30 MARKS]

[TOTAL: 60 MARKS]