PART A:

QUESTION 1
Rahul “is part time student of Unity College.” “Since he is working on full time basis in a private
company, he promised to pay his wife”, Anjali RM900 “if she prepared and typed his assignment”.
Rahul “later refused to pay” Anjali “on the said amount and claimed that he was no serious in making
the offer”.

Is there any enforceable agreement between Rahul and Anjali? State your reason and support with
relevant cases.

(15 marks)
“The issue in this case study is under Law applicable Contract Act 1950, under section 2(h)
contract is an agreement enforceable by law”

In order for an agreement to be legally enforceable, the parties should have an intention either
express or implied from the circumstances.

2 situations:

Commercial/ Bss agreement

Social/domestic & family agreement

Presumption of law

the law presume that the parties has an intention to create legal intention

“Rahul was part time student of Unity College”. “He had promised to pay his wife rm 900 if she
prepared and typed his assignment”. His “wife and unable to follow the him in Sri Lanka
because of her poor health, later Rahul failed to keep his promise and therefore the wife sued
Rahul for breach of contract”.

Conclusion;
 - “In conclusion, Anjali could not sue her husband Rahul because their agreement was a
domestic agreement where the law presumed that the parties has no intention to create legal
relation. Therefore, the agreement was unenforceable.”

QUESTION 2
Allen offered to sell a bungalow worth RM1 million to Rashida for RM500, 000-00 only. He promised
to transfer the title to Rashida upon settlement of the full amount. A week later when Rashida was
about to pay the price, Allen informed her that he would not proceed with the offer because the
consideration was inadequate. Rashida wishes to sue Allen for a breach of contract.

(10 marks)
Advise Rashida.
Issue;
- “The issue in the case study is consideration need not be adequate.”

Introduction;
- “The law applicable are Contract Act 1950 and English law”
- “According to section 2(h) of Contract Act 1950, an agreement enforceable by law is a
contract.”
- “The parties in this case study are Allen (Offeror) and Rashida (Offered).”

Explanation Principles of law;

- Definition of consideration:-

“Section 26 of Contract Act 1950 explain section 26 contract act 1950.” “An agreement
to which the consent of the promisor is freely given is not valid merely because the
consideration is inadequate.” “It might be void if the parties to the contract can show that
the consent given was caused by coercion.”
 Case: Thomas v Thomas (1842).
- “John Thomas, shortly before dying, orally expressed a desire for his wife to
have either the house used as their residence and its contents or RM100 in
addition to the other provisions made for her in his will.” “After his death the
executors of his estate (Samuel Thomas, his brother, and Benjamin Thomas)
entered into an agreement with Eleanor (his wife) “in consideration of John's
desires” whereby Eleanor would take possession of the house and in return
maintain the house and pay RM1/year for the "ground rent".

- “The respondent remained in the house for some time; however after the death
of Samuel, the appellant refused to complete the conveyance, claiming that
consideration was lacking.” “The lower court found for Eleanor and Benjamin
appealed.”

Application of law;
- “In the case study, Allen offered to sell a bungalow worth 1 million to Rashida for RM
500,000.00 only.” “However a week later when Rashida was to pay the price, Allen inform
her that she would not proceed with the offer because the consideration was in adequate
since Allen offered to sell her bungalow worth 1 million freely to Rashida for RM
500,000.00 only, this should be adequate.”

- “According to section 26 an agreement made without reply is void.” “It means an

agreement where the consent of the pledge is freely given is not merely the solicitation of
the inadequacy, but the absence of such consideration may be taken into consideration by
the court in determining the question of whether the consent of the undertaking is freely
given”. “The nature of a contract is not necessarily adequate given, but it should have a
value in the eyes of the law. If the agreement is reached independently, the adequacy of the
price is not important to the existence of a binding contract.”

Conclusion;
 - “I would advise Rashida that she would be able to sue Allen because consideration need
not be adequate”

QUESTION 3
Discuss with reference to relevant provisions and cases.

On 1 February, Mona offered Darlisa second hand car for RM60, 000 payable once. In accepting
the offer, Darlisa suggested to pay the price in three instalments in six months. Mona did not
agree to her suggestion. Later, Darlisa told Mona that she agreed to pay the price in a single
payment. On 5 February, Mona sold the car to Arif for RM 50, 000. Knowing this, Darlisa was
upset. She seeks your advice whether she can sue Mona for a breach of contract.

Advise Darlisa.

(15 marks)

Advise Darlisa.
Issue;
- “Counter offer”
- “Section 7(a); acceptance must be absolute an unqualified”

Introduction;
- “The Law applicable: Contract Act 1950”
- “English Law”
- “Definition of Contract Act 1950 Section 2(a)”
- “The parties in this case study are Mona (Proposer) and Darlisa (Acceptor)”

Explanation of Principles of Law;

- “Definition of proposal”:-
“Section 2(a) Contract Act 1950: when one person signifies to another his willingness to
do or abstain from doing anything, with a view to obtaining the assent of that other to act
or abstinence, he is said to make a proposal.”

- “Proposal must be distinguish from a counter offer. Counter proposal is a situation

whereby after a proposal has been made, suddenly either one of the party make a new
proposal”. “If any changes have been made to the proposal, this is also a counter
proposal, a counter proposal is treated as a rejection of the original proposal.”

“Case: HYDE v WRENCH (1840).”

- “The defendant offered to sell a farm to the P for RM 1000. The Plaintiff said
that he would give RM 950 for the farm”. “The defendant refused and later the
plaintiff wrote again and agreed with RM 1000”. “The D refused to maintain
his original offer and the plaintiff tried to obtain specific performance for the
alleged breach of contract”. “It was held that the Plaintiff response to the offer
 was a counter offer which rejected the original offer”. “Therefore there was no
contract created.”

“Application of law;”
“Mona offered to sell her car to Darlisa for Rm 60,000 payable once, but Darlisa suggested to
Mona to buy the car in three installments in six months”. “Here Darlisa has made a counter offer
which rejected the original offer”.” Her acceptance was not absolute and unqualified as required
under section 7(a) because she has change the original price”. “When Mona refused to accept
the counter offer, Darlisa wrote again that she was prepared to pay the original sum demanded
but the new offer was not accepted by Mona.”

Conclusion;
“Darlisa could not sue Mona for breach of contract because Darlisa had made counter offer
which rejected the original offer”

QUESTION 4

Contracts with a minor are void but in certain circumstances such contracts are valid and binding.
Discuss your answer with authorities and cases.

Contract of Agency.
- “Section 137 of Malaysian Contract Act, 1950 deals with any person including a minor
may become an agent.”

- “As between the principal and third person, any person may become an agent, but no person
who is not of the age of majority and of sound mind can become an agent, so as to be
responsible to his principal according to the provisions in that behalf here in contained.”
 - “Definition of Contract Section 2 (h).”

- “An agreement enforceable by law is a contract.”

- “According to section 2 (h) contract is an agreement enforceable by law.”

Under Age of majority Act 1971.

- “Section 4 (a), a breach of promise of marriage is actionable in Malaysia, thus a minor
may sue or be sued for such breach.”

“CASE: Rajeswary & Anor V Balakrishnan & Ors (1958).”

- “A promise of marriage entered into by minor”

- HELD: The contract was valid.

- “Under Contract Act 1950”

i. “Contract of Necessaries”

ii. “Contract of Scholarship”

iii. “Contract of Insurance”

iv. “Contract of Service or Apprenticeship”

i. “Contract of Necessaries -A minor is bound a contract if the contract is for his

necessaries”. “Necessaries mean minor’s actual needs and his station in life (clothes,
food, education etc..). “

- “The test of whether the goods or service are ‘necessaries’ would depend on”
a) “The nature of the goods / service supplied”

b) “The minor’s actual need”

 c) “The minor’s condition of life”

- “Therefore, ‘necessaries’ may vary according to the facts and circumstances of each
case.”

- “Section 69 Contract Act 1950 - Contract with a minor is a valid contract provided
that:”

a) “The necessities must have been supplied to a minor”

b) “The minor’s liability includes necessities supplied to anyone whom he is

lagally bound to support such as wife and child”

c) “The supplier of necessities may claim only a reasonable price which may
not the same as the contract price.”

d) “Minor will only pay if he has the property to do so.”

“CASE: Nash v Inman (1908).”

- “The D was a minor. He ordered certain clothes from the P including 11 fancy
waistcoats.” “The P sued the D to recover the cost of the clothes supplied.
According to the evidence given by the minor’s father, the minor’s already had
adequate supply of clothes suitable and necessaries for his condition in life.”

- “HELD: The clothes supplied to the D were not necessaries. Therefore, the D
was not bound by the contract.”

ii. “Contract of Scholarship.”

- “Scholarship agreement includes any scholarship, award, loan, sponsorship or
 appointment to a course of study or any others facility for the purpose of educating or
learning.”

- “Section 4(a) Contract (Amendment) Act 1976 No Scholarship agreement should be

invalidated on the ground that the person entering the contract is a minor.”

iii. “Contract of Insurance.”

- “INSURANCE ACT 1963 (Revised 1972)”

- “A minor over the age of 10 may enter into a contract of insurance. If under 16 with
the consent of the parent or guardian.”

iv. “Contract of Service or Apprenticeship.”

- “A minor is bound by a contract which he obtains education or training for a trade or
profession or beneficial experience in a trade or profession.”

- “THE EMPLOYMENT ACT 1955 & THE CHILDREN AND YOUNG PERSON
ACT 1966”

- “Enable a minor to enter into a contract of service or apprenticeship”

PART B:
TOTAL: 50 Marks (30%)

QUESTION 1
a) Discuss the requirements that a buyer must satisfied before he is entitled to claim his rights
as provided in the Sale of Goods Act 1957.
(10 marks)
b) Aaron wanted to buy Jamil's car for RM 5,000.00. He threatened to smash the car with a
hammer if Jamil refused to sell it at that price. Jamil reluctantly agreed to the proposition.
However, Jamil now wishes to take legal action against Aaron. Advise Jamil.
(5 marks)

QUESTION 2
Briefly discuss the principle of Nemo Dat Quat Non Habet in the Sale of Goods contract. Support your
answer with decided cases.
(10 marks)

QUESTION 3
An agency may be terminated in the following manners.
a) By the act of parties
b) By operation of law

(10 marks)
QUESTION 4

a) David forms a contract for the following transactions with Sam:

i) The purchase of a bungalow at Taman Kayangan for RM700,000.00

ii) The purchase of 30 pieces of ancient coins for RM80, 000.00
iii) The purchase of a pair of branded shoes for RM200.00
 Discuss whether any of the transactions are governed by the Sale of Goods Act 1957.

(10 marks)

b) Explain the remedies available to a buyer in the event of breaches of a sale of goods
agreement.
(5 marks

Answers Part B
QUESTION 1
a) Discuss the requirements that a buyer must satisfied before he is entitled to claim his rights
as provided in the Sale of Goods Act 1957.
Introduction;
- “The Sale of Good Act 1957 (SOGA in this forward) was asked for in 1957 and the statue
was apropos to offer of things in peninsular Malaysia (East Malaysia), despite the
conditions of Penang and Malacca”. “The Act was later modified in 1990 and it wires both
states1”. “The conditions of Sabah and Sarawak (West Malaysia) are not addressed by this
display rather they are addressed by district 5(2) of the Civil Law Act of 1956, which gives,
among others, that the law to be managed in England in the like case at the journalist day
and age”. “The English statue related is the sale of goods act 1979, which is an invigorate
of the sales of goods act 1893”. “As an outcome Sabah and Sarawak are bound by statute
to keep applying models of english law identifying with the offer of stock”. “The partition
between the laws West and East Malaysia can raise interesting good 'ol fashioned issues,
despite how English statue is the standard wellspring of law for the two sections of
Malaysia (Pheng, 1997; Beatrix and Wu, 1991). “

- “The Act contains definitions or elucidations which clear up what the wording utilized as
a bit of it proposes and the uncommon condition. The going with are a touch of the
ramifications of key terms in the SOGA.”

- “Buyer a man who purchases or consents to purchase things.”

- “Seller a man who offers or consents to offer things.”

 - “Goods recommends every sort of flexible property other than essential cases and cash;
and joins stock and offers, making things, grass and things appended to or encompassing
some piece of the land which are consented to be isolates before deal or under the
comprehension of offer”.

- “Specific things proposes stock perceived and settled upon at the time a comprehension of
offer is made; and any clarification utilized however not depicted in this Act which is
portrayed in the Contracts Act 1950 (Act 136), might have the centrality doled out to it in
that act”.

- “Future stock deduces things to be produce or made or grabbed by the trader after the
making of the assention of offer”.

- “Sale of goods act 1957 is an Act identifying with the offer of things. Right when asked
for it was germane in Federal Territory, Johore, Kedah, Kelantan, Negeri Sembilan,
Pahang, Perak, Perlis, Selangor and Terengganu - 23 April 1957. The statutory was later
stretched out to Malacca and Penang - 23 February 1990”.

- “Price recommends the cash thought for an offer of things”.

- “Document of title to things, joins a bill of filling, dock warrant, stockroom escort's
introduction, wharfinger's affirmation, railroad receipt, warrant or interest for transport of
stock and some other record utilized as a bit of the essential course of business as
confirmation of the proprietorship or control of stock, or supporting or appearing to
support, either by ensuring or by development, the holder of the response to exchange or
get things thusly tended to”.

“Explanation Contract Of Sale Of Goods”

- “Section 7 - under the offer of things law section 7 if the stock before a set contract isolated
or go under so much underhandedness the huge never again twists up completely fit for its
proposed reason without the information of the dealer”.

- “Section 9(1) - Under the inspiration driving expense is an area 9(1) the cost might be set
in like course by the gratefulness, might be set under concurred conditions or might be set
relating to the dealings between both the purchaser and the shipper”.

- “Section 10 (1) - When managing a consent to offer under valuation as indicated by portion
10 (1) if the respect which had been consented to be encouraged by an outcast, if that
untouchable neglects to present such an exhibit the awareness is pushes toward inducing
the opportunity to be voided”. “In the event that however the things perceive how to be
passed on the purchaser is subjected to pay a sensible cost”

- “Section 12 of the sale of things act talks withdraws between a condition and an
accreditation. A condition is essential for the present of the assention and it not being met
gives ideal for cancelation”. “However an accreditation is a stipulation and a statement not
being met associates with one to confirm for harms yet not wipe out or deny the assention”.

- “Section 13 the purchaser is met all necessities for see a condition as a burst of affirmation”.
“We can see this in light of Associated Metal Smelters Ltd V Tham Cheow Toh”.” Here
the attacked party obtained a radiator from the respondent. It was passed on in the assention
this could fulfill a temperature of around 2600 F however theirs showed unfit”. “So they
sued for harms”. “It was held that they were permitted to see the split of conditions as a
break of affirmation as sue for harms”.

- “Section 14 of the SOGA is separated into three sections. The essential portion gives that
a proposed condition concerning the trader, that, in light of a strategy, he has preference to
offer the stock, and that by decency of an agree to offer, he will have leverage to offer the
 things when the property is to pass”. “This in short translates that it is a proposed condition
to the seller to ensure that the buyer will regard the proprietorship furthermore possession
and use of the stock, delicacy to do in that point of confinement gives the buyer the
preferred standpoint to expel the understanding as the issue constitutes an amassed
condition (Razman and Shukor, 2001)”. “The running with part grants that there is a
reasoned certification that the buyer may perceive quit commitment in regards to stock,
and if the merchant fails to concur, the buyer is had all the fundamental qualities for state
for hurts since the issue is being constituted as a proposed ensure”. “Entry c, the last bit of
Section 14 of SOGA, states that there is a recommended ensure that the stock ought to be
free from any charge or encumbrance for any untouchable not verbalized or known to the
buyer before or when the perception is made”. “If the merchant fails to concur, the buyer
is met all necessities for ensure for hurts since the issue is being constituted as a determined
assurance”.

- “Section 19 (1) passes on that the property of stock is traded to the buyer at the time the
assention drawn up imagines that for it will do everything considered”. “In perspective of
Re Anchor Line (Henderson Brothers) Ltd an electric crane was gotten from Ocean SS Co
Ltd. Yearly portions where to be made and Anchor was to have full responsibility by then”.
“Bits were made routinely yet it went into liquidation. It was held that the property was
still under Ocean since each and every one of the parts had not been made”.

- “Section 20 where there is an unequivocal al contract open to be obtained of good property

goes to the buyer when the assention is made”. “In reference to Mohamed Mydin v Ramiaj
(1965), a lorry was sold to the buyer however a vehicle repairer had taken improvement
for the advantage of the buyer”. “Notwithstanding the way that the enrollment of the lorry
was not passed it isn't the report of title so it was held that the vehicle was fittingly passed
on to the exasperates party”.

- “Section 24 of the Sale of Goods act unless a substitute point emits an impression of being
unless an other target shows up when a better than typical is passed on than a buyer on
 embracing the property of the broad passes on to the buyer if this is authenticated in any
way”.
 “Section 24 (a) shows the property is passed if understands his attestation of the
noteworthy or does any show to exhibit his supporting. A confirmation is seen
as a show of trade”. “We can see here with Kirkham v Attenborough case
(1895) When Kirkham sold diamonds to Winter reduced or return Shortly after
Winter swore the things with Attenborough”. “It was held that paying little
personality to the way that Kirkham endeavored to recuperate the jewels it was
denied their specific limit was a claim to ruler from Winter”.

 “Section 24 (b), the buyer holds property if he holds the stock however does not
give his notice of rejection and returns the things inside a sensible time”. “The
time designation would then be an issue of reality. We can see here with the
Pole v Smith's vehicle Sales (Balham) Ltd An auto was sold to smith put
isolated down or returned and it was pondered that it should have been returned
by the 10 of November”. “Since they didn't reestablish the auto until the point
that the whole of November it was held that the property was taken in
fundamental had passed”.

- “Section 26, where the stock are passed on by blame of either the purchaser or the vendor
the things are at the danger of the get-together in blame as respects any hardship which
won't not have happened for such blame”. “When we research the Demby Hamilton and
Co Ltd v Barden case (1949) where the shippers should pass on the 30 tons of pulverized
apple by February 1946 yet they were made a request to hold it in December 1945”. “So
they passed on in January and April however after that the purchaser would see no mo
more”. “By November the straggling stays of the juice had turned sour. It was held that the
charge stayed for the purchaser for the vehicle was yielded as a result of him”.

- “Section 27 of the offer of things act we can see that when a generally engaging is sold by
a man who isn't the proprietor without the master of the proprietor the purchaser fulfills no
best title over the proprietor unless proprietor is kept from denying the merchant pro to do
 everything considered”. “In the event that we take a gander at Heap V Motorists Advisory
Agency Ltd We can see here Heap was begun to give North an auto to show to a false
customer who wound up utilizing to for fourteen days by then sold it to the respondent”.
“Their activity winning in light of how they were dissuaded from denying North Authority
to offer”. “All together for the title to have the Negligence most likely proposed a
carelessness in his responsibilities”.

- “Section 30(1) when a man having sold things proceeds or is in charge of those stock
pitches those stock to purchaser who got the things in consistence with basic goodness will
finish property is if that individual has full assistance from the proprietor of those stock”.
“Looking Pacific Motor Auctions Pty Ltd v Motor Credits Hire Finance Ltd Motor Credits
gained unmistakable autos from Motordom which carried on business as auto shippers, to
let out contract buy assentions to Motordom's Customers. Motordom's Obtained Possession
of the autos as bailess with Authority to offer, the purchaser denied their vitality to see yet
they had decisively sold them to Pacific Motor who had gotten them in consistence with
conventional decency”. “The purchasers started continuing insisting their entry and harms
for concealment”. “This however tumbled in light of the way that Pacific Motors had
wound up being uncommon title under s (30) (1) since Motordom proceeded in Possession
of the vehicles”. “Any private exchanges between the standard shipper and purchaser were
immaterial”.
- “Section 30 (2), when a man consents to purchase things and expands them with the assent
of the vender, duty concerning stock the progression by that individual of the stock under
any game plan and without notice or right of the main dealer should have affect. Passing
by the Forsythe International (UK) Ltd v Silver Shipping Co Ltd and Petro globe
International Ltd : The Saetta”. “Forsythe offered oil to Silver who diagrammed the vessel
from Petroglobe who were her proprietor under a charter party”. “Petroglobe enlivened the
oil board without see from Forsythe”. “Certainly when Forsythe brought a change against
Petro globe it was given to help them the vehicle of stock to Petroglobe was not intentional
since it was seen before the whole of the certification party not the think about headway of
Silver”.
Conclusion;
- “All the condition above must be fulfilled all together for the buyer 2 ensure his rights.
Cases, Giant Malaysia stock trade, inside 7 days with unprecedented box and receipt”. “The
7 days isn't made in "Beast's Terms and Conditions".

(10 marks)

b) Aaron wanted to buy Jamil's car for RM 5,000.00. He threatened to smash the car with a
hammer if Jamil refused to sell it at that price. Jamil reluctantly agreed to the proposition.
However, Jamil now wishes to take legal action against Aaron. Advise Jamil.
(5 marks)

Identify issue;
- “Aaron was interested in Jamil's car and ordered Jamil to sell his car for RM 5,000”. “If
Jamil does not agree with the offer, he will threaten Jamil by destroying a car with a
hammer”.

Introduction;
- “Coercion/ Duress - Section 15, “Coercion” is the committing, or threatening to commit
any act forbidden by the Penal Code, or the unlawful detaining or threatening to detain,
any property, to the prejudice of any person whatever, with the intention of causing any
person to enter into an agreement”.

- “A contract is only valid shall it is entered into freely and voluntarily without any

force from other party”. “Duress has been defined as a threat of harm made to compel a
person to do something against his/her will or judgment; especially, a wrongful threat made
by one person to compel a manifestation of seeming assent by another person to a
transaction without real volition”.
 - “Coercion, section 15 of the Contract Act defines 'coercion' as coercion is”

i. “Committing or threatening to commit any act forbidden by the Penal Code or”

ii. “The unlawful detaining or threatening to detain any property, to the prejudice
of any person with the intention of causing any person to enter into an
agreement”.

“Coercion is limited to acts that are forbidden under the penal code which is the criminal
law of the country or the detention of the property of another”.

Principal of law;
- “The effect of a contract containing the element of coercion is that the contract may be
revoked on the choice or requirement of the party being forced to enter the contract. In
accordance with section 19 of the contracts act 1950, "In the event of a compulsion to an
agreement, the agreement shall be canceled upon the forced choice". “Therefore, the
element of coercion may exist in a contract in which one party has been forced to enter into
an agreement without an independent consent”. “The party is forced to be legally required
to apply to the court to cancel the contract entered into by reason of the coercion, and the
contract is invalid and void”.

Application of law;
- “Aaron wanted to buy a Jamil car for RM 5,000 but Jamil disagreed with Aaron suggestion
and refused to sell his car to Aaron”. “If Jamil does not agree to sell to Aaron, he threatens
Jamil by destroying the car with a hammer”. “Jamil's advice is that Jamil may take legal
action under section 15 of the 1950 contract deed alleging that compulsion is "to do any
act or threaten to commit any act prohibited by the penal code, to abstain illegally or
threaten to detain, any property, harming anyone, with the intention of causing a person to
make a treaty ".

Conclusion;
 - “In conclusion, the threat of arresting property, If a person illegally detains or threatens to
detain others' property to compel him to sign an agreement, the agreement may be canceled
on the choice of the injured party”. “In the meantime, the imposition of force-section 19,
when the consent of the parties to an agreement is obtained by coercion, the contract may
be revoked at the option of the party, whose consent is so obtained”. “The burden of
proving that the consent is obtained through coercion is to the party wishing to waive the
contract at the request of the contract”.

QUESTION 2
Briefly discuss the principle of Nemo Dat Quat Non Habet in the Sale of Goods contract. Support
your answer with decided cases.
(10 marks)

Introduction;
- General represent, "If items were obtained from a man who isn't the proprietor and who
sold them without the proprietor' pro , the buyer does not get any title".

- “Maxim Nemo Dat Quat Non Habet (no one trade an unrivaled title than he has himself)”.

- “Rationale is for the confirmation of the obligation regarding to be held”.

- “In a comparative time to guarantee the energy of honest to goodness proprietor for the
circumstance stock are stolen”.

- “Nemo Dat Rule; Section 27 - If items acquired from a man who isn't a proprietor and who
sold them without the proprietor's energy, the buyer got no title”. “On a very basic level,
Section 27 illuminated or grasped nemo dat decide that is only a man with title can trade
awesome title to another”. “A man with title could be the proprietor or the endorsed
master”. “Simply bargain b those individuals can trade extraordinary title to another”.
 “Objective is to guarantee right of proprietorship. Outline, if the stock were stolen and sold
to another social event”.

Content;
- “Exceptions to Nemo Dat Quat Non Habet, Estoppel portion 27”. “Estoppel develops when
the proprietor because of his lead is prohibited/ stopped by the law from denying the
merchant's energy to offer”. “The arrangement made by the dealer can overlook
extraordinary title the buyer if buyer buys as per some fundamental genuineness and for
regard. Genuine Purchaser with Value. In this situation, extraordinary title is go to the
buyer”.

- “Sale by business pro section 27”. “If the arrangement is made in terms of professional
career administrator (no title and no master to offer the stock), can neglect awesome title
the items to another social occasion if, the pro had the items or file of title with the
proprietor's consent”. “The buyer buys the stock in consistence with basic conventionality,
the buyer must pick between restricted alternatives that the administrator has no master to
offer “

Conclusion;
- “Buyer improves title than the shipper had or toward the day's end you can't pass a
prevalent title than what you have”. “For instance in the event that you have stolen things
and exchange that stock to a guiltless purchaser, he doesn't get a not all that awful title to
stock”. “He in like way get the debased title of stolen things. ( insinuate contract law)”.

Examples cases and for support my answer;

- “One game plan suggested in Abu v Ali is for designation of hardship between the
proprietor and the purchaser”. “In any case, this would be troublesome where stock have
experienced a couple of hands”. “A choice, and possibly more workable, course of action
is to supplant the current Nemo Dat run and its exceptional cases with a rule of
conventionality”. “This would empower the courts to settle face off regarding relating to
 proprietorship with reference to this standard which could be maintained by statutory
tenets.” “The court would then have the ability to enable title to the person who in its eyes
it was more unbiased to do accordingly and could think about variables, for instance,
general business goodness, the reasonable course of danger, the open entryway for the get-
togethers to affirm the accreditations of the false party, the business or private breaking
point of the get-togethers, the ability to ensure, and the bona fides of the social occasions”.
A vitality of dispersion could moreover be give.

QUESTION 3
An agency may be terminated in the following manners.
a) By the act of parties
b) By operation of law

Introduction;
- “Section 158 of Malaysian Contract Act, deals with compensation for revocation by
principal or renunciation by agent. Section 159 of Malaysian Contract Act, deals with
notice of revocation or renunciation”.

- “Section 158 of the contracts Act 1950 stipulates, where there is an express or implied
contract that the agency should be continued for any period of time, the principal must
make compensation to the agent, or the agent to the principal, as the case may be, for any
previous revocation or renunciation of the agency without sufficient cause. Notice of
revocation or renunciation”.
- “Section 159 of the contracts Act 1950 states, reasonable notice must be given of such
revocation or renunciation; otherwise the damage thereby resulting to the principal or the
agent, as the case may be, must be made good to the one by the one”. “Termination of
agency, an agent's authority can be terminated at any time agreed by both party If the trust
between the agent and 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”. “Section 158, 159 of the Contract Act 1950. An agency can be terminated by the
act of the parties in any one of the following ways”

i. Mutual Agreement – “The agency may be terminated at any time and at any
stage by the mutual agreement between the principal and his agent”. “Therefore,
the authority of an agent terminates, when the principal and the agent agree to
terminate it”. “Example A appointed B, as his agent in order to collect the loan
lent to C and D. B collected the loan lent to C”. “Subsequently, A and B agreed
to put an end to the agency relationship between them. Here the agency is
terminated”.

ii. “Revocation of the Agent’s Authority by the Principal - The principal may
revoke the authority of his agent before it has been exercised by the agent so as
to bind the principal”. “Example, a appointed D, as his agent to purchase certain
goods”. “Any time before, he purchases the goods, A may revoke D’s
authority”. “However, the revocation of agent’s authority is subject to the
following conditions”

 “If the agent has exercised his authority partly, the principal may revoke the
agency for future acts only”.

 “If the agency is created for a fixed term and if there is some sufficient
cause, the principal may revoke it before the expiry of the said term”.
  “If the agency is created for a fixed period or continuous, the principal must
give a reasonable notice of revocation of agency to the agent”.

 “If the agent has some interest in the subject-matter, the agency can be
revoked only when there is an express contract permitting the termination”.

iii. “Revocation by the Agent - Agent, after giving a reasonable notice to the
principal, may renounce the business of agency”. “If the contract of agency is
entered into for a fixed period, agent should pay compensation to the principal
for the earlier renunciation of the business of agency”. “Termination of Agency
by Operation of Law”. “An agency can be terminated by operation of law in
any of the following cases”

 “Performance of the Contract” – “when the agency is for a particular

object, the agency terminates when the object is fulfilled”.

 Expiry of Time – “when an agency is created for a particular period of

time, it comes to an end on the expiry of that period even if the work is not
completed”.

 Death or Insanity of Either Party – “the agency is terminated when the

agent or principal dies or becomes insane”. “On the death of either the agent
or the principal, the agency is automatically terminated because a person
cannot act on behalf of non-existent person”. “Thus, where a client dies, his
pleader’s authority also terminates”. “Similarly, the relationship between
agent and principal comes to an end when principal or agent becomes
insane, for a person of unsound mind cannot contract”.

 Insolvency of the Principal – “when the principal is declared as insolvent,

the agency is terminated”. “This is because the insolvent is disqualified
from entering into contract in respect of his property”.
  Destruction of Subject-Matter – “when the subject-matter in respect of
which agency was created has been destroyed, the agency is terminated.
Thus, if an agent is asked to sell a house, and the house is destroyed by fire,
there is a cessation of the agency”.

 Principal becoming an Alien Enemy – “when the war breaks out between
the countries of the principal and the agent, the contract of agency is
terminated”.

 Dissolution of a Company – “when a company, whether it is of principal’s

or agent’s dissolved, the contract of agency between them comes to an end”.

 Termination of Sub-Agent’s Authority – “the sub-agents authority is

terminated automatically, as and when the authority of the agent is
terminated”.

 Subsequent event Rendering the Agency Unlawful – “it maybe that an

act is lawful when the agency was created but if it is declared by law to be
unlawful subsequently, agency cannot continue, as that would be unlawful.
An agency that is lawful may become unlawful due to declaration of war
when the principal or agent is deemed an alien enemy”.

- “Termination of Sub-agency and Substituted Agency, the authority of sub-agent will be

terminated as and when the main agency is terminated”. “However, the substituted agency
will not be terminated automatically if the authority of the main agent is terminated”.

Contents;
- “Compensation for revocation by principal or renunciation by agent”. “Section 158 - where
there is an express or implied contract that the agency should be continued for any period
of time, the principal must make compensation to the agent, or the agent to the principal,
 as the case may be, for any previous revocation or renunciation of the agency without
sufficient cause”.

- “Notice of revocation or renunciation. Section 159 - reasonable notice must be given of

such revocation or renunciation; otherwise the damage thereby resulting to the principal or
the agent, as the case may be, must be made good to the one by the other”.

Conclusion;
- “Placing emphasis on the words “continued for any period of time”, the majority
concluded section 158 was to be read as having reference only to fixed term agency
contracts”. “ The majority then read section 159 as being dependent on section 158,
not independent of it. The relevant passages appear at page 59 of the report, and
the same is quoted below”:

 “We are unable to find any indication that the contract is meant to be for any
fixed period of time, be it for one year or whatever”. “The only indication,
perhaps, is that the schedule of commissions is to be signed annually”

 “In the circumstances, we are of the view that the agency contract is not “for
any period of time”, meaning a fixed or definite period of time. “Therefore, the
provision of section 158 is not applicable”. “Therefore, it was not revoked or
renounced “previous” to the expiry of the period, as the period does not exist”.
“Therefore the issue whether there was sufficient cause or not did not a rise. We
now come to section 159”.

- “In brief, section 159 says that reasonable notice must be given for such revocation or
renunciation, otherwise the damage to the principal or agent must be made good”.
“The question is whether section 159 is independent of section 158 meaning that in all
cases of revocations and renunciations, reasonable notice must be given otherwise the
damage resulting thereby must be made good”
 - “Again, we prefer to look at the section and interpret it. We are of the view that
the words “such revocation and renunciation” only refer to a revocation or renunciation
under section 158”. “First, this section follows immediately after section 158. Secondly,
there is no reason for the word “such” to be used if it is only meant to refer to
the revocation and renunciation mentioned in section 158”. “Thirdly, section 159 uses
the very same words used in section 158 i.e. “revocation and renunciation.”

QUESTION 4

a) David forms a contract for the following transactions with Sam:

ii) The purchase of a bungalow at Taman Kayangan for RM700,000.00

ii) The purchase of 30 pieces of ancient coins for RM80, 000.00
iii) The purchase of a pair of branded shoes for RM200.00

Discuss whether any of the transactions are governed by the Sale of Goods Act 1957.

(10 marks)

b) Explain the remedies available to a buyer in the event of breaches of a sale of goods
agreement (5 marks

Issue;
- “The scope @ tremendousness of good under Section 2 of the offer of good Act 1957.
Space 2 of the Sale of Goods Act 1957, 'immovable trade of proprietorship from 1
individual to another'. Sorts of transport true blue advancement (giving over of stock sold)
or basic course (giving over keys to auto/report of title watching out for the things)”.

- Section 2 SOGA – “stock join each kind of flexible property other than significant cases
and money and breaker stocks and offers, influencing harvests, to grass and things related
with or molding bit of the land which are agreed to be separated before bargain or under
contract of offer”. “Along these lines, in setting of the above, arrive is avoided”.
Introduction;
- Law relevant is offer of good Act 1957.

- “Definition under Section 4 (1) SOGA 1957”. “An agreement of offer of good is an
agreement whereby the dealer exchanges or consents to move the property in products
at a cost”.

- CONTRACT OF SALE –“ an understanding whereby the merchant trades or agrees to

move the property in items (the ownership) to the buyer at a cost (a money
consideration)section 4(1) of SOGA 1957”. There must be:-

i. Goods

ii. Transfer of property.

iii. Money consideration (price)

Principle of law;
- “Section 2 SOGA 1957 stock to join all from of moveable property, stock and offers,
affecting things, to grass and things related with areas or things circling bit of the grounds”
(consented to be isolated before deal or under a comprehension of offer).

- “Goods prohibits arrive, key cases (rights to sue another for commitment), and leasehold.
Every sort of direct property other than dire cases and cash; and circuits stock and offers,
impacting yields, to grass and things joined to or encompassing piece of the land which are
consented to be disengaged before deal or under the comprehension of offer” - allot, SOGA
1957 . It limits:-
i. Land.

ii. “Things joined to arrive (be that as it may it incorporates timber and creating
yields which are to be assembled before bargain or under the understanding
of offer)”.
 iii. “Chooses, all things considered, or rights, e.g. commitments, far from being
obviously true instruments and licenses”.

iv. “Services, for instance, work and work, or repair”.

- “Goods which plot the subject of an assention of offer may either be existing stock or future
things appropriate of SOGA 1957”.

- Existing stock – “Goods perhaps attested or controlled by the dealer, and might be either
picked or settled upon at the time an assention of offer is made”.

- Specific stock – “Goods saw and settled upon at the time a valuation for offer is made”.

- Ascertained stock – “Goods which, in a gratefulness for the offer of unascertained things,
have wound up being seen and settled upon by the get-togethers”.

- Unascertained stock – “Those irrefutable by plot as is ordinarily said”.

- Future stock – “Goods to be made or made or secured by the shipper after the making of
the energy about offer: zone 2 of SOGA 1957”.

Application of law;
- In understanding with segment 4 (1) contract of offer of things 1957 stock trades may be
directed by the showing up of offer of things if an assention relating to the shipper trades
or agrees to trade the rights to a thing - to the buyer at a particular cost and the consent to
offer will be the game-plan when the predetermined time has passed or the conditions have
been taken after.

Conclusion;
- “When Sam agrees to exchange his shoes for David' branded shoe, is it an OK? Here,
section 2 sale of goods act, 1957 related in light of the way that both shoes and clothes is a
versatile property”. “Regardless, section 4(1) sale of things act, 1957 does not satisfied in
light of the way that arrangement understanding exchange something without respect, that
 is exchange the shoes and clothes without cost”. “Along these lines, sale of goods act,
1957cannot apply”.
b) Explain the remedies available to a buyer in the event of breaches of a sale of goods
agreement.

- “Sections 57, 58 and 59 law down the remedies available to the buyer against the seller in
the event the latter breaches the contract”. “The buyer can seek damages for non-delivery
of goods, damages for breach of warranty or specific performance of the contract”.

Section 57 Damages for non delivery of goods.

Introduction;
- “Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer
may sue the seller for damages for non-delivery”. “When the property in the goods has
passed, the buyer, provided that he is entitled to the immediate possession, has all the
remedies of an owner against those that deal with the goods in a manner inconsistent with
his rights”. “If, therefore, the seller wrongfully re-sells them, he may sue the seller in trover,
and also against the second buyer, though as against him the rights may be cut down by the
provisions in sections 30 and 54”. “In the case of non-delivery, the true measure of damages
will be the difference between the contract price and the market price at the time of the
breach”. “The market value of the goods means “the value in the market, independently of
any circumstances peculiar to the plaintiff (the buyer)”. “Where he, the seller, is guilty of
breach of an agreement to sell, the following remedies may be available to the buyer”:
i. “The buyer may sue for damages for non-delivery under section 57 of the
Sale of Goods Act”.
ii. “In case the price has been paid by the buyer, he may recover it in a suit for
money had and received for a consideration which has totally failed”.

- “Where however the buyer has failed to prove the alleged damages caused due to short
supply of goods by seller and has also not served to seller a notice under section 55 of the
Indian Contracts Act, the buyer cannot claim damages”. “In the case of pre-payment, the
date for ascertaining the measure of damages must be the date of the breach, though it
 might be said in such a case, the buyer has not got the money in his hands and cannot
therefore go into the market and buy and in conformity with this idea it has been ruled at
nisi prius that the date of the trial may be taken”. “However a more rational view is that
even in this case the date of breach should be taken to calculate the difference between the
contract price and the sale price, and the buyer can recover this amount, along with an
interest”.

- “In a case where the seller failed to deliver Finnish timber, and the nearest substitute which
the buyer could obtain was english timber which involved more expenditure, in cutting and
also more wastage, it was held that the buyer was entitled to claim the extra cost since the
buyer had acted reasonably in mitigating his claim”. “Where the seller failed to deliver
timber, the market price of the timber, on the due date for delivery was taken as the basis
for assessing damages”. “The Privy Council observed that “had the seller supplied the
timber, the buyers would have made their profits and would have still had the other timber
to sell upon which they were entitled to make such profits as they could.” “In order that the
buyer may recover as damages an amount in excess of that which represents the difference
between the market price and the contract price, it is necessary to prove facts which will
bring the case within the second branch of Section 73 of the Contract Act”.

Contents;
- “Where the seller wrongfully neglects or refuses to deliver the goods to the buyer, the buyer
may sue the seller for damages for non-delivery”. “Duty of Mitigation: losses to be
calculated on the day of the breach”.

Section 58 Specific performance.

Introduction;
- “Subject to the provisions of the Specific Relief Act, 1877, in any suit for breach of contract
to deliver specific or ascertained goods, the court, may, if it deems fit, on the application
 of the plaintiff, by its decree direct that the contract shall be performed specifically, without
giving the defendant the option of retaining the goods on the payment of damages”. “The
decree may be unconditional, or upon such terms and conditions as to damages, payment
of the price, or otherwise, as the Court may deem just, and the application of the plaintiff
may be made at any time before the decree”.

- “This section may best be explained by an illustration; there was a contract to sell a ship to
a German ship owner”. “The ship was an old ship but her engines and boilers were new,
so as to satisfy the German regulations, and the buyer could have her registered
immediately in Germany”. “In view of these facts and the price, the ship was of peculiar
value to the buyer, and there was only one other ship on the market that would suit his
requirements”. “The court granted specific performance of the contract”. “Originally, the
provisions relating to sale of goods were part of the Indian Contract Act, 1872 which as
such did not provide for the equitable remedy of specific performance”. “Subsequently, a
separate Act namely Specific Relief Act, 1877, was enacted to provide for equitable
remedies including the remedy of specific performance”. “The section provides a remedy
to the buyer, and gives no correlative right to the seller”. “It is therefore only on application
of the buyer when suing as plaintiff, that the contract of sale can be enforced specifically
and the section only applies when the contract is to deliver specific or ascertained goods”.
“It has been held that a seller is not entitled to enforce specific performance of the contract
under s. 58 because it deals with the case of a buyer of specific goods in respect of a contract
to deliver specific or ascertained goods. ‘Specific’ here has the meaning which is given in
section 2(14) while ‘ascertained’ means ‘identified in accordance with the agreement after
a contract of sale is made”.

Contents;
- Section 58, as noted above, reproduces with some suitable changes section 52 of the
English Act. Before passing of the Sale of Goods Act, 1930, there existed Specific Relief
Act 1877, Chapter II of which dealt with specific performance of an existing contract. This
is also why section 58 of the Sale of Goods Act, 1930 begins with the words “subject to
the provisions of Chapter II of the Specific Relief Act, 1877”. “The court has wide
 discretion to impose conditions. In one case, specific performance of agreement to transfer
shares was granted subject to a lien to protect the transferor against non-payment of the
price of the shares”. “In another case, the House of Lords while ordering the specific
performance of a contract to sell shares put a condition that the buyer should pay interest
on the purchase price which he had been entitled to retain pending the order”.

Law of torts.
Introduction;
- “Laws of Tort also gives remedies to buyer (for wrongful interference) conversion with the
goods where the property in goods has passed to the buyer and where his entitlement for
delivery is being withheld”.

- “A tort is a civil wrong of which a person who sustains injury or damages can institute civil
proceedings against the person who commits the tortious act. Liability in tort arises when
a person does something that is not allowed, or does not do something that is required, by
the law. Plaintiff “- “a person who suffers injury Tortfeasor / defendant – A person who
commits or responsible for the injury.”

- Plaintiff need to prove that he suffered damage or harm before the defendant is held
liable;
“damage may be in the form of, damage to reputation or economic loss. A person who
suffers injury is entitled to sue for damages”.” Damages means the monetary compensation
that the defendant is ordered to pay to the plaintiff”. “Damages fall into 2 broad categories”
i. “Liquidated damages refers to specific damage that the plaintiff has
suffered, for instance loss of earnings and medical bills”.

ii. “Unliquidated damages refers to unjustifiable damage which includes

general damages for pain and suffering”.

Contents;
- “The application of tort law in Malaysia is a very interesting thing to look at and examine.
Unlike most other laws in Malaysia that use statute law as a major source, the principle
tort law can be seen in the "general law" of the UK and the court's decision or "judicial
 precedent". “Branches in law this continues to evolve with courts in this country that has
attempted to adjust the use of common law on the situation in our country that is slightly
different from the home country of this general law”. “The tort law basically aims to
provide remedies to those who are accidents or loss due to the actions of others. In many
cases, this tort law is overlapping with criminal law”. “For example in the case of a car
collision, offenders will be punished under the relevant”. “Act based on the type of offense
committed”. “Offenders may be liable to imprisonment, imprisonment or suspension until
death if the victim dies and the prosecutor can prove that the offender is guilty of a
particular section”. “However, these penalties cannot help the victims in terms of
recovering from the losses suffered”. “In other words, criminal law cannot help the victim
recover from the loss suffered”.

Section 59 Remedy for breach of warranty.

Introduction;
- “Where there is a breach of warranty by the seller, or where the buyer elects or is compelled
to treat any breach of a condition on the part of the seller as a breach of warranty, the buyer
is not by reason only of such breach of warranty entitled to reject the goods; but he may”-

i. “Set up against the seller the Brach of warranty in diminution or extinction

of the price; or”

ii. “Sue the seller for damages for breach of warranty”.

- “The fact that a buyer has set up a breach of warranty in diminution or extinction of the
price does not prevent him from suing for the same breach of warranty if he has suffered
further damage”. “A breach of warranty does not entitle the buyer to reject the goods and
his only remedy would be those provided in section 59 namely, to set up against the seller
the breach of warranty in diminution or extinction of the price or to sue the seller for
damages for breach of warranty”. “From the definition of warranty given in section 12(3)
it is clear that a breach of it gives rise to a claim for damages only on the part of the buyer”.
“It is also laid down by section13 that, even in the case of a breach of condition, if the
buyer has accepted the goods, or, in the case of entire contracts, part of them, either
voluntarily, or by acting in such a way as to preclude himself from exercising his right to
reject them, he must fall back upon his claim for damages as if the breach of the condition
was a breach of warranty”. “This section declares the methods by which a buyer who has
a claim for damages in either case may avail himself of it”. “It does not deal with the cases
of fraudulent misrepresentation, which may enable the buyer to set aside the contract nor
with cases where, by the express terms of the contract the buyer may return the goods in
case of a breach of warranty”. “Also, in cases where the buyer has lawfully rejected he
goods, he must proceed not under this section, but under section 57, and if necessary under
section 61, to recover the purchase price and interest”.

- “It must be noted here that in such cases, damages are assessed in accordance with the
contained in section 73 of Indian Contract Act, 1872”. “This was also observed by a
division bench of the Bombay High Court in City And Industrial Development Corporation
of Maharashtra ltd., Bombay v Nagpur steel and alloys, Nagpur; “Remedies under section
59 are not absolute and cannot be resorted to at any point or strategically point suitable to
the buyer”. “He is duty bound to give notice of his intention”. “Its proper time, form and
manner will, of course, depend upon the facts and circumstances of each case”. “To hold
otherwise, would amount to placing the seller in an awkward and indefinite position - not
warranted either by law or by equity.” “In the case of a warranty of quality, the presumption
is that the measure of damages is the difference between what the goods are worth at the
time of delivery, and what they would have been worth according to the contract which
this must be ascertained by reference to the market price at the time”.
 - “In a majority of cases it is found that the warranty in question is not a warranty as defined
in section 12(2), but a condition which falls under section 13(2) to be treated as a warranty”.
“Very often it is the condition that the goods should correspond with the description by
which they were sold, or should be fit for a particular purpose. It is necessary that the buyer
should rely on the warranty, and act reasonably, that is to say, he should take reasonable
steps to minimize the damages”. “Where there is a breach of the warranty that the goods
should be fit for a particular purpose, the rule again is that the damages should be such, as
may naturally flow from the breach”. “This was seen in a case where the plaintiff’s wife
died from the effects of eating tinned Salmon which the plaintiff bought from the
defendant, the plaintiff was held entitled to recover, as damages for the breach of the
warranty, that the salmon would be fit for human consumption”. “Compensation was
awarded for medical expenses, funeral costs, and the loss of her life”. “There may also be
breaches of other conditions which can be treated as breaches of warranty, such as the
warranty of title”. “In such a case also, the buyer may be involved in difficulties with sub-
buyers, for instance, he may buy a motor car from one who has no right to sell it and may
resell it to a third person, from whom the true owner may recover it, or its value”.

Contents;
- “If there is a breach of warranty by the seller, or if the buyer elects, or is compelled, to treat
any breach of a condition on the part of the seller as a breach of warranty, the buyer is not
merely because of the breach of warranty entitled to reject the goods, but the buyer may”
-

i. “Set up against the seller the breach of warranty in diminution or extinction

of the price or”

ii. “Maintain an action against the seller for damages for the breach of warranty”

- “The measure of damages for breach of warranty is the estimated loss directly and naturally
resulting, in the ordinary course of events, from the breach of warranty”. “In the case of
 breach of warranty of quality, the loss is, unless there is evidence to the contrary, the
difference between the value of the goods at the time of delivery to the buyer and the value
they would have had if they had answered to the warranty”. “The fact that the buyer has
set up the breach of warranty in diminution or extinction of the price does not prevent the
buyer from maintaining an action for the same breach of warranty if the buyer has suffered
further damage”.

Conclusion;
- “Remedies for breach of sales contracts. When the buyer breaches a contract for the sale
of goods, the seller may stop or withhold delivery of the goods, or recover damages or the
purchase price of the goods”. “When the seller breaches a sales contract, the buyer may
reject the goods, recover damages, obtain specific performance, or cover and obtain from
the seller the extra cost of the cover”.