Muhammad Azamuddin bin Zainal

2018200328
BA2421C

1. a) Section 3 of the intrepretations Act 1948 and 1967: means any procmation, rule,
regulation, order, notification, by-law or other instrument made under any Act, Enactment,
Ordinance or other lawful authority and having legislative effect. The term delegated
legislation is referred to the legislation created by the government agencies.

The advantages of Legislation is saves time for the Parliament, there are lots of
overwhelming activities that the government should be concerned about.In order to resolve
the complexity and volume that the legislature needs to deal with, the power needs to be
delegated to the executive branch. This is because of the lack of time or the capacity thereof
in making laws for regulation. Hence, the creation of delegated legislation should be
essential to avoid bogging down into the burden of details.

Enables Flexibility, Rigidity in administration has been created by statutes, but the
administrative legislation can be more adaptable to varying circumstances. Thus, it will be
useful in the branches of administration liable for occasional changes and where the
technical developments are happening on a day-to-day basis.

Done in Consultation with Affected Interests, In order to make legislation effective, it

is important to have prior consultation regarding interests that should be affected. This is
because drafting of rules might and oftentimes doesn’t allow a conference between vested
interests and the government. This can be affected and would result in the agreement bound
to voluntary compliance.

The Administrative Legislation Provides for Expert Legislation, The rules are being
drafted by the experts familiar with actual conditions in appropriate departments. With this
practice, they are able to work better compared to the lay members comprising the
legislature.

Disadvantages of Legislation is Undemocratic Procedures, Legislation comes as a

result to undemocratic processes and procedures. In terms of by-laws, it is arguable that
those are democratic considering they are created by elected bodies. Thus, they can only
make by-laws in so far as they have been given authority to do so based on an enabling Act
of the local government.

Problem of Sub-Delegation, The arousal of sub-delegation may come when the

responsible body for the creation of legislation has not been able to deal with it directly.
Thus, the creation of sub-delegation will give the job to other parties. As a result, this will
cause problems as the other parties should not be accountable at the same way as those who
created the legislation.
 Influence of the High Courts, In comparison to the primary legislation, the term
delegated legislation can be influenced by the High Court. Hence, they can quash the said
legislation as it has been made by people who aren’t directly elected. Thus, it could limit
the control of their power. Nevertheless, it can be dependent on the people making those
claims as they bring matters in consideration of the courts.

The time of the Parliament has been limited and the government will have a legislative
program that should keep the Parliament busy. Thus, the Parliament will have no time to
scrutinize the debate complex and regulations and technical rules. Perhaps the advantages
and disadvantages presented here can provide a clear understanding regarding the
significance or insignificance of delegated legislation. It may or may not be a significant
factor for some, but it should be a concern for everyone.

b) The supremacy of English Law remains in Malaysia even after independence. The
English Law is adopted so far as they were suitable to local conditions. Many of the local
laws especially those affecting trade, commerce and banking were patterned on English
Models (or in some instance other colonial laws) e.g. Section 3 and 5 of the Civil Law Act
1956 provide that English law relating to contract is applicable in Malaysia in relation to
areas not covered by our legislation or our case law. Our courts have also tended to look
towards the English Law to aid them in the interpretation of the Contract act. Based on
Section 3(1) of the Civil Law 1956, the application of the law of England throughout
Malaysia is subject to two limitations. First it is applied only in the absence of the local
statutes on the particular subjects. Local law takes precedence over English Law as the
latter is only meant to fill in the lacuna in the legal system in Malaysia. Secondly, only the
part of the English law that is suited to local circumstances will be applied. This application
shall be applied so far only as the circumstances of the states of Malaysia and their
respective inhabitants permit and subject to such qualifications as local circumstance render
necessary. The meaning of necessary hear means as the population in Malaysia comprises
diverse races practising a variety of customs and religions, most of which are totally
different from those of English.

2. a) Revocation of offer refers to offer remain open until it lapses or is withdrawn by the
offer. Revocation of offer can be in several ways such as revocation by communication of
notice of revocation. Section 6 (a) of the act states that a proposal is revoked by the
communication of notice of revocation by the offeror. Referring to the above section, an
offer may be revoked by ‘communicating’ a notice of revocation of offer. In order to
revoke, the offer must communicate or notify the offer by any mean about his intention to
revoke the offer. The notice of revocation of offer is complete only when the notice had
come to the actual knowledge of the offer.

Next, revocation of offer can be made by lapse of time. Section 6 (b) states that a
proposal is revoked by the lapse of time prescribed in the proposal for its acceptance or by
th elapse of reasonable time without communication of the acceptance. This section
provides that an offer may expire by lapse of time in 2 situations namely when the
acceptance has not been made within the time prescribed by the offer or if no time is
prescribed the acceptance has not been made within a reasonable time.

Lastly, method of revocation of offer is revocation by failure of the offer to fulfill

condition precedent to the acceptance. Section 6 (c) of the act states that a proposal is
revoked by the failure of the acceptor to fulfill a condition precedent to acceptance. If the
offee put a condition to be fulfill by the offer before making an acceptance, the offer must
fulfill that condition if not the offer is automatically revoked.

b) Whether there is a breach of contract due to inadequacy of consideration by Ally.

According to Section 26, an agreement to which the consent of the promisor is freely given
is not void merely because the consideration is inadequate. A contract is not void merely
because of the consideration is not adequate, even though the consideration is not sufficient,
the contract is valid and binding. For instances, Phang Swee Kim v Beh I Hock the
respondent agreed to transfer to the appellant a parcel of land on payment of 500 although
the land was worth much more. The respondent later refused to perform the contract
claiming that the promise was unenforceable because of ineadequacy of consideration.
Court held the inadequacy of consideration is not important. The contract was binding.
Based on the situation, even though Ally refuses to sell the phone to Baba because of
inadequacy of consideration, the contract between Ally and Baba is binding. In conclusion,
Baba may sue Ally for breach of contract.

Second issue that can be pointed out is whether the consideration need to be adequate.
Based on Section 26 of The Contract Act 1950, an agreement to which the consent of the
promisor is freely given is not void merely because the consideration is inadequate, but the
adequacy of the consideration may be taken into account by the court in determining the
question whether the consent of the promisor was freely given. There is a case that can
proved the consideration need not to be adequate which is Phang Swee v Beh I Hock’s
case. In this case the trial court judge held that the agreement was void due to inadequacy
of consideration, but upon the appeal to federal court, the decision was reversed. The seller
had to agreed to transfer the land fo $500.

To relate with the situation between Ally and Baba, as we can see this situation has the
similarity with the case stated above. Ally at first agreed to sell his handphone RM 500 to
Baba and suddenly Ally refuse to sell it on the ground that the price is not adequate. Ally
did the same thing as the Defendant in Phang Swee v Beh I Hock’s case did. And the court
was held that consideration need not to be adequate.

To conclude, the consideration not need to be adequate.

3. An agent’s authority can be terminated at any time. If the trust between the agent and
the principal has broken down, it is not reasonable to allow the principal to remain at risk
in any transactions that the agent might conclude during a period of notice. Agency can be
terminated by following ways.

First by agreement. On the basis that agency relationship is created by agreement

between the principal and the agent, such a relationship can also be brought to an end by
mutual agreement between the parties, either in writing or orally. Termination by
agreement may also occur if the agency relationship is terminated pursuant to the provisions
of the agreement itself. The following situations may arise in this context if the agreement
provides for the appointment of the agent for a specified period of time, the agency will
come to an end automatically when that period of time expires. If the agreement provides
for the agency to terminate upon the occurrence of a specified event, the agency will come
to an end upon the happening of the specified event. Renunciation by agent. An agent is
entitled to renounce his power by refusing to act or by notifying the principal that he will
not act for the principal. Unilateral termination of the agency by the agent before he has
fulfilled the obligations to the principal under the agency agreement will render the agent
liable to the principal for the breach of the agency agreement such as payment of damages
for the loss suffered by the principal.

Next, by notice. If the agency agreement provides that the agency may be terminated
upon either party serving on the other written notice of a specified duration. However, if
the agency agreement does not contain any termination provision, the general rule is that
reasonable notice has to be given to the other party to terminate the agency.

Lastly, agency may be terminated by following manner which is by operation of law.

Firstly under operation of law, agency can be terminated by the performance of the contract
of agency. Under section 154, an agency is terminated by the business of agency being
completed. Secondly, by the expiration of the period fixed or implied in the contract of
agency. Once the agency is expired, the agency is terminated even though the business has
been completed. Thirdly, by the death of the principal or the agent. Under section 154, an
agency is terminated by either principal or agent dying. Fourth, by the subsequent insanity
of either the principal or agent. Under section 154 an agency is terminated by either the
principal or agent becoming unsound mind. For instances, Yonge v Toynbee. The agent is
liable to the 3rd party because he acted without the authority due to the fact that the
principal become insane. Fifth, by the bankruptcy or insolvency.
4. Unpaid seller according to section 45 (1) refers to when the whole of the price has not
been paid or when a bill of exchange or other negotiable instrument, which has been
received by the seller as conditional payment, is dishonored. Unpaid seller has two kinds
of rights or remedies namely rights in personam and rights in rem.

Rights in personam are the common remedies available for the unpaid seller against the
buyer. Under this kind of remedies the unpaid seller has the right to sue the buyer for the
price (section 55) or to sue the buyer for damages for non-acceptance (section 56).

Rights in rem are a kind of remedies for the unpaid seller in respect of goods
themselves. These remedies are provided under section 46 and the remedies are right of
lien, right of stoppage in transit and right of resell. Right of lien refers the unpaid seller
who is in possession of the goods is entitled to retain possession until payment or tender of
the price. This right exists even where the property in goods has passed to the buyer, but
delivery has not been made. If property in goods has not passed to the buyer, the seller may
withhold delivery in addition to his other remedies. The seller may exercise his right of lien
in the situation where the goods have been sold without any stipulation as to credit, where
the goods have been sold on credit but the term of credit has expired or when the buyer has
become insolvent.

Next, right of stoppage in transit referrers to right of an unpaid seller to stop the goods
in transit to resume possession of the goods as long as they are in the course of transit for
example the goods are still with the carier. The seller may retain the goods until payment
of the price. The seller may exercise the right of stoppage in transit only when the buyer
become insolvent or the goods are in control of a carrier.

Lastly, rights of resell gives right to the unpaid seller in following situation where the
goods are a perishable nature section 54(2), where the unpaid seller who had exercised his
right of lien or stoppage in transit and has given notice to the buyer of his intention to resell,
but buyer fails to pay for the price within a reasonable time after receiving such notice
section 54 (2). Besides the right of resale, the seller may also recover from the original
buyer, damages for any loss due to his breach of contract. The buyer should not be entitled
for profit, which come from the resale. However, if the seller failed to notice, the seller
shout not be entitled for damages and the buyer shall be entitled to the profit of the resale.

Another circumstances is where the seller expressly in the contact, reserves a right of
resale in case the buyer failed to pay for the price section 54(4). The implications of the
resale is the original contract with such default buyer will be terminated. Therefore the
original buyer is no longer required to pay for the price and the seller is entitled to keep any
profit out of that resale. However if the seller is still entitled for damages from the original
buyer for breach of contract and any loss suffered by the seller out of that breach section
54(4)
5. The first issue is whether Bronze Motors may repossess the car from Sapphire. Section
16(1) states that the owner may repossess the goods from the hirer only if the hirer defaulted
to pay 2 successive instalments or the total payment of instalments paid by the hirer
amounts to not more than 75% of the total cash price of the goods as in the hire purchase
agreement. Section 16(1C), as for deceased hirer, the owner shall not repossess the goods
unless there is a default to pay 4 successive instalments. Applying the law to the issue,
Rocky, Sapphire’s husband, acquired a car from Bronze Motors through a hire purchase
agreement. On 16 February 2016, Rocky passed away after a spell of illness. During his
illness, Rocky had defaulted on one instalment of the car. So, the car cannot be repossess
because of two reason which are before Rocky passed away he only defaulted on one
instalment only and it also in the cases of deceased hirer. In conclusion, Bronze Motors
cannot repossess the car from sapphire.

The second issue whether Bronze Motors has the right to serve the Fourth Schedule
notice to Sapphire. Section 16(1), in order to repossess, the owner must first serve the fourth
schedule notice on the hirer. In this fourth schedule notice, the hirer would be informed that
the owner would repossess the goods after the expiration of the period of 21 days from the
date of the service of this notice, unless the hirer pays the arrears of instalments and interest
due within that 21 days period. The period fixed must not be less than 21 days, otherwise
the notice is not valid. In Pang Brothers Motors sdn bhd & Lee Aik Seng (1978), the date
specified in the notice of repossession was bad in law as it was 2 days short of the statutory
minimum of 21 days. Answering to Sapphire’s situation, Sapphire approached Bronze
Motors and requested for time to settle the arrears. She also informed the owner that she
wanted to continue with the agreement. The request was rejected and no reason was given
for the rejection. On 30 March 2016, Bronze Motors issued a Fourth Schedule Notice to
Sapphire. In this case, Sapphire need to settle the arrears as she requested before and interest
based on the fourth schedule notice due within 21 days from 30 March 2016. In conclusion,
Bronze Motors can issued the Fourth Schedule Notice but it can be not valid if Sapphire
can settle the arrears plus interest within 21 days.

The third issue is whether hire purchase agreement between Rocky and Bronze Motors
is completed or not. Section 4B(2) states that hire purchase agreement must be duly
completed before the intending hirer or his agent is required to sign it. Signing blank forms
by the hirer shall be invalid. Thus, the owner shall not deliver to any dealer or his agent, a
hire purchase agreement which has not been completed, section 4B(2A). Relevant to the
issue above would be also under section 4B(2) HPA, ‘no owner, dealer, agent or person
acting on behalf of the owner shall require or cause any intending hirer or his agent to sign
a hire purchase agreement or any other form or document relating to hire purchase
agreement unless such hire purchased agreement, form or document has been duly
completed. Applying the law to the issue, Rocky acquired a car from Bronze Motors
through a hire purchase agreement. On 16 February 2016, Rocky passed away after a spell
of illness. During his illness, Rocky had defaulted on one instalment of the car which means
that he did not settle all the instalment for the car. In conclusion, the hire purchase
agreement shall be void because it has not been completed.
 The fourth issue is whether Sapphire can use the right of operation of law. Section 13,
if the hirer is dead, the hirer’s right, title and interest under the hire purchase agreement
will pass to his personal representative of the hirer. This happen when the hirer died or
made bankrupt. According to this case, Rocky, Sapphire’s husband, acquired a car from
Bronze Motors through a hire purchase agreement. On 16 February 2016, Rocky passed
away after a spell of illness. So, Sapphire as his wife can be representative for him to
continue with the agreement. In conclusion, Sapphire has right as an heir according to the
operation of law.

Lastly, the issue is whether Sapphire has right to early completion of the agreement
with Bronze Motors. Section 14, the hirer has the right to complete the purchase of the
goods earlier than the actual term of the hire purchase agreement by paying to the owner
the net balance due under the agreement. This may be done after giving a written notice to
the owner about the hirer’s intention to do so and pay to the owner the balance due under
the agreement (section 14(1)). According to this case, Sapphire approached Bronze Motors
and requested for time to settle the arrears. She also informed the owner that she wanted to
continue with the agreement. The request was rejected and no reason was given for the
rejection. So, sapphire has the authority to settle the areas and Bronze Motors has no reason
for the rejection. In conclusion, Sapphire can use the statutory rights of hirer to settle the
instalments to Bronze Motors.