Briefly explain the maxim delegatus non potest delegare and its exception.

An agent ordinarily and without express authority, has no power to employ a sub-agent to do the
busisness, without the knowledge or consent of his principal. The maxim is, a personal trust and
confidence which cannot be delegated for the principal employs the agent form the opinion which he
has of his personal skill and integrity ,and the latter has no right to turn his principal over to another ,
of whom he knows nothing.

The exception

Delegated authority cannot be re-delegated unless there is exception.In the following cases the
agent may delegate the work to another if:

1. . Where the principal approves the delegation. The principal may expressly allow his agent to
appoint a sub-agent. His consent may also be implied from the conduct of the parties. The
principal may ratify his agent’s unauthorized delegation.
2. ii. Where it is presumed from the conduct of the parties that the agent would have power to
delegate.
3. iii. Where the custom of trade permit delegation. a sub-agent may be appointed and the
work delegated to him if there is ordinary custom of trade to that effect. Thus architects
generally appoint surveyors.
4. iv. Where it is necessary to complete the business. Nature of Work .Sometimes the very
nature of work makes it necessary for the agent to appoint a sub-agent.
5. v. In case of necessity or emergency.
6. vi. Where the act to be done is purely ministerial or clerical. An agent cannot, of course,
delegate acts which he has expressly or impliedly undertaken to perform personally, e.g. acts
requiring personal or professional skill. But the agent may delegate acts which are purely
ministerial in nature. e.g., authority to sign.
Q2. EXPLAIN THE REMEDIES AVAILABLE TO AN UNPAID SELLER UNDER THE SALE OF GOODS ACT
1957 FOR THE BREACH OF CONTRACT OF SALE OF GOODS.

The seller of goods is deemed to be an “unpaid seller” within the meaning of this Act

(a) when the whole of the price has not been paid or tendered.
(b) When a bill of exchange or other negotiable instrument has been received as conditional
payment, and the condition on which it was received has not been fulfilled by reason of the
dishonour of the instrument or otherwise.

2. the term seller includes any person who is in the position of a seller, as for instance an agent of the
seller to whom the bill of lading has been indorsed , or a consignor or agent who has himself paid, or
is directly responsible for the price.

UNPAID SELLERS RIGHTS

1. Subject to this Act and of any law for the time being in force, notwhithstanding that the
property in the goods may have passed to the buyer , the unpaid seller of goods as such has
by implication of law:

(a) A lien on the goods for the price while he is in possession of them.
(b) In case of the insolvency of the buyer a right of stopping the goods in transit after he has
parted with the possession of them
(c) A right of resale as limited by this Act.

2. Where the property in goods has not passed to the buyer , the unpaid seller has, in addition
to his other remedies , a right of withholding delivery similar to and co-intensive with his
rights of lien and stoppage in transit where the property has passed to the buyer.
Q3.EXPLAIN ANY 5 FORMALITIES OF A VALID HIRE PURCHASE AGREEMENT AS PROVIDED UNDER THE
HIRE PURCHASE ACT 1967.

1. Before any hire-purchase agreement is entered into in respect of any goods:

- In a case where negotiations leading to the making of the hire-purchase agreement is carried
out by any person who would be the owner under the hire-purchase agreeement to be
entered into, or or by any person, other than the dealer acting on his behalf such person
shall serve on the intending hirer a written statement duly completed and signed by him in
accordance with the form set out in part one of the second schedule.

- In a case where negotiations leading to the making of the hire-purchase agreement is carried
out by a dealer . such dealer shall

I- Serve on the inteding hirer a written statement duly completed and signed by him
inaccordance with the form set out in part one of the second schedule
II- At any time after the service of the written statement reffered to in subparagraph (i)
but before the hire-purchase agreement is entered into, serve on the intending hirer
a written statement duly completed and signed both by him and the prospective
owner in accordance with the form set out in part two of the second schedule .

2. The written statements refferred to in subsection (1) shall be served by delivering it in person
to the intending hirer or his agent who shall acknowledge receipt of the same by signing
under his hand at the appropriate column contained therein.
3. Any person who has been served with the written statement or statements reffered to in
subsection (1) shall not be under any obligation to enter into any hire-purchase agreeement
and no payment mentor or other consideration shall be required from him in respect of the
preparation or service of such statement or statements as the case may be.
4. A hire-purchase agreement entered into in contarvention of subsection (1) shall be void.
5. An owner who enters into a hire-puerchase agreement and a dealer who carries out
negotiations leading to the making of a hire-puerchase agreement that does not comply with
subsection (1) , irresespective of whether such hire-purchase agreement is void or
otherwise , shall be guilty of an offence under this Act.
6. Where a person upon whom a written statement or statements reffered to in subsection (1)
have been served is subject to any obligation to enter into any hire-purchase agreement to
which such written statement or statements relate or is required to make any payment or
other consideration in respect of the preparation or person who imposed such obligation or
requirement shall be guilty of an offer under this Act.
7. The minister may, by order, amend, vary,delete form, or add to part one and part two of the
second schedule.
-
Q4 BRIEFLY EXPLAIN THE REQUIREMENT OF NOTICE OF TERMINATION IN ACCORDANCE WITH THE
EMPLOYMENT ACT 1955.

Acoording to section 12 EMPLOYMENT ACTS,

Notice of termination of contract 12. (1) Either party to a contract of service may at any time give to
the other party notice of his intention to terminate such contract of service.

(2) The length of such notice shall be the same for both employer and employee and shall be
determined by a provision made in writing for such notice in the terms of the contract of service, or,
in the absence of such provision in writing, shall not be less than—

(a) four weeks’ notice if the employee has been so employed for less than two years on the date on
which the notice is given;

(b) six weeks’ notice if he has been so employed for two years or more but less than five years on
such date;

(c) eight weeks’ notice if he has been so employed for five years or more on such date:

Provided that this section shall not be taken to prevent either party from waiving his right to a notice
under this subsection.

(3) Notwithstanding anything contained in subsection (2), where the termination of service of the
employee is attributable wholly or mainly to the fact that—

(a) the employer has ceased, or intends to cease to carry on the business for the purposes of which
the employee was employed;

(b) the employer has ceased or intends to cease to carry on the business in the place at which the
employee was contracted to work; Employment 25

(c) the requirements of that business for the employee to carry out work of a particular kind have
ceased or diminished or are expected to cease or diminish;

(d) the requirements of that business for the employee to carry out work of a particular kind in the
place at which he was contracted to work have ceased or diminished or are expected to cease or
diminish;

(e) the employee has refused to accept his transfer to any other place of employment, unless his
contract of service requires him to accept such transfer; or

(f) a change has occurred in the ownership of the business for the purpose of which an employee is
employed or of a part of such business, regardless of whether the change occurs by virtue of a sale or
other disposition or by operation of law,

the employee shall be entitled to, and the employer shall give to the employee, notice of
termination of service, and the length of such notice shall be not less than that provided under
paragraph (2)(a), (b) or (c), as the case may be, regardless of anything to the contrary contained in
the contract of service.

(4) Such notice shall be written and may be given at any time, and the day on which the notice is
given shall be included in the period of the notice.
Q5. IN RELATION TO THE APPLICATION OF CHEQUES , DISCUSS BRIEFLY THE PROTECTION OF THE
PAYING BANK.

Paying banker is the bank where a customer draws a cheque on it.

Risks: If the paying bank pays the amount of the cheque to the wrong person, the bank must bear the
lost because of:

i. non-compliance with the customer’s mandate

ii. conversion to the true owner of the cheque

Protection under the Act:

i. S.59: Payment in due course

If payment is made in good faith at or after the maturity of the bill to a holder and without notice
that his title to the cheque is defective, the bank would not be liable even if payment is made to the
wrong person.

ii. S.60: Forged or unauthorized indorsement

The bank is protected if it pays a cheque in good faith and in the ordinary course of business to the
bearer who forged the cheque.

iii. S.82: No indorsement or irregular indorsement

The protection is given to a paying banker where the banker pays a cheque which is not indorsed or
irregularly indorsed in good faith and in the ordinary course of business.

iv. S.80: Crossed cheques

The paying banker is protected if he pays the cheque in good faith without negligence and according
to the crossing.
Q6. DISCUSS BRIEFLY THE CHARACTERISTICS OF ISLAMIC BANKING AND CONVENTIONAL BANKING.
PART C QUESTION 1.

ISSUE Whether Shasha is bound to contract made by

the two company for her learning purposes?
PRINCIPAL OF LAW S.10 CA: “All agreements are contracts if they
are made by the free consent of parties
competent to contract, for a lawful
consideration and with a lawful object, and are
not hereby expressly declared to be void.”

S.11 CA: “Every person is competent to contract

who is of the age of majority according to the
law to which he is subject, and who is of sound
mind, and is not disqualified from contracting
by any law to which he is subject”

Age of Majority Act 1971: age of majority is 18

years.
• Under 18: minor.
• Contract by Minors; Legal Effect: Void.
All the contract enter by a minor are
void they lack of judgement in such
matter

Although a contract entered into by minor is

void, nevertheless, there are five exceptions to
this general rule when the contract is still valid
and enforceable

Contract of necessaries
• Necessaries can be in form of goods or
services. Education also was considered
as necessaries.

Government Of Malaysia V Gurcharan Singh

Held: Food and clothes are necessaries to the
student. Education is also necessary.

APPLICATION OF LAW
CONCLUSION
b)