Business Law – LAW 60104

UNDERGRADUATE DUAL AWARD

BUSINESS PROGRAMMES

TUTORIAL QUESTIONS
WEEK 2 - 14

LAW60104: BUSINESS LAW

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MODULE CALENDAR AUGUST 2020

SEMESTER sSSSEMESTER

WEEK DATES LECTURE TOPICS: TUTORIALS VIA ZOOM ASSESSMENT/

PRE-RECORDED OR TEAMS KEY DATES
LECTURES UPLOADED
ON TIMeS

1 24/8/2020 - Lecture 1 – Introduction to No Tutorial

28/8/2020 Malaysian Legal System

Tutorial 1 – Introduction to 31 August –

2 31/8/2020 – Lecture 2 – Sources of Law the Malaysian Legal System National Day
4/9/2020

3 7/9/2020 – Lecture 3 – Formation of Tutorial 2 – Sources of Law

11/9/2020 Contract (Offer and
Acceptance)
Tutorial 3 – 16 September –
4 14/9/2020 – Lecture 4 - Contract Law – Offer & Acceptance Malaysia Day
18/9/2020 (Consideration and
Capacity

5 21/9/2020 – Lecture 5 - Contractual Tutorial 4– Contractual

25/9/2020 Terms Capacity and Consideration

6 28/9/2020 – Lecture 6 – Vitiating Tutorial 5– Contractual

2/10/2020 Factors Terms (Exclusion Clause)

7 5/10/2020 – Lecture 7 – Contract Law – Tutorial 6 – Vitiating Factors

9/10/2020 Performance, Discharge &
Remedies
12/10/2020 –
8 16/10/2020 Lecture 8 – Introduction to Tutorial 7- Contract Law – ASSIGNMENT
Independent Business Structures: Discharge and Remedies SUBMISSION DUE
Learning Partnerships Law for Breach Contract ON 12th October
NO VIRTUAL TUTORIAL-
Week (ILW) 2020 by 10am
Submit answers into
Professional forum prepared on TIMeS.
Development
Week (PDW)
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9 19/10/2020 – Lecture 9 - Law of Tort Tutorial 8-

23/10/2020 Introduction to Business
Structures: Partnerships Law

29th October-
10 26/10/2020 – Lecture 10 – Employment Tutorial 9 – Law of Tort Maulidur Rasul
30/10/2020 Law

11 2/11/2020 – Lecture 11 – Law of Tutorial 1 0 –

6/11/2020 Agency E m p l o y m e n t Law

12 9/11/2020 – Lecture 12 – Company Law GROUP ORAL 14th November-

13/11/2020 PRESENTATION DURING Deepavali
TUTORIAL

13 16/11/2020 - Lecture 13 –Sale of Goods Tutorial 12 – Company Law

20/11/2020 Act

14 23/11/2020 - Tutorial 13: Revision

27/11/2020 Questions

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Tutorial 1: Introduction to Business Law & The Malaysian Legal System

Question 1

“Many of us in Malaysia, do not have sufficient understanding of each other’s cultural ways and
laws. For example, most non-Muslims in Malaysia either have little or no conceptualisation of
what Syariah law is, except for negative portrayals in the Western media”.

According to Malaysian jurist Zaitoon Othman, contrary to the perception of many, Malaysia is not
an Islamic country. The Federal Constitution of Malaysia provides that Islam is the religion of the
Federation; but other religions may be practised in peace and harmony in any part of the
Federation.

Discuss the above statement in light of the following questions:

a) Who is affected by (Syariah) Islamic law in Malaysia?

b) When does Syariah laws apply to Muslims?
c) What happens when there is a conflict between Syariah Courts and Civil Courts?

Short answer questions

1. In your own words explain what do you mean by ‘laws’?

2. Explain with examples what is meant when a law is legally wrong but not morally wrong,
morally wrong but not legally wrong and both morally and legally wrong.

3. What type of legal system has Malaysia?

4. What is meant by secular laws?

5. Do non-Muslims have to obey the syariah laws? Why?

6. If a person wants to claim an amount of RM70,000 which court are they to file the claim?

7. If a person who has lost his case in the court of appeal is not happy with the decision,
what can he do?

8. If a person who buys a product finds it to be faulty, where should he take his grievance to
and why?

9. In relation to the Malaysian legal system:

(a) Define ‘legislation’ and ‘delegated legislation’

(b) Explain the advantages and disadvantages of delegated legislation.

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10. Indicate whether the following statements are TRUE or FALSE

a. Law is defined as “the body of rules (enacted or customary) recognised by a

community as binding.

b. The Malaysian legal system is a civil law system.

c. Constitutional law lays down the rights of individuals in the state.

d. Criminal law codifies the various offences committed by individuals against the
State.

e. State constitution is the supreme law of the land

11. Which of the following is NOT true of Statute law and/or case law?

a. Case law is dependent on the public engaging in litigation

b. in the event of a conflict between the two, case law will prevail

c. case law is the body of principles of law developed by the courts

d. when first created, a case law rule will only apply to the parties to the case.

12. Fill in the blanks with the following:

a) is the supreme law of the land.

b) are laws made by Parliament.

c) One example of customary law is .

d) and allows the use of English common law and equity if it is suitable for local
circumstances.

e) The English common and equitable principles are applicable in Malaysia by virtue of
(name the legislation).

f) are only applicable to the Muslims.

g) Delegated legislation is also known as the .

h) Written laws can take the form of _, ,

and .

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Tutorial 2: Sources of Law/The Law Making Process

Question 1

The Federal Constitution is said to entrench certain fundamental rights for the protection of the
individual.

Discuss briefly the nature and effect of any five of those rights.

Question 2

Neptune is happily married to Mercury and they are blessed with two children. A few years later
their relationship dispersed into separate ways. Neptune wants to file for a divorce and seek
custody of his children. While on his way to see a lawyer, he met with an accident and was
severely injured. State in which court (also state the civil jurisdiction of the respective courts)
would he

a. file for the divorce?

b. claim custody of his children?

c. claim for his injuries?

Question 3

Discuss the law-making process in Malaysia.

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Tutorial 3: Offer and Acceptance

Question 1

a) Explain the difference between invitation to treat and offer.

b) What do you understand by the term intention to create legal relations?

c) Discuss the principle of law established in the case of Balfour v Balfour and Merritt v Merritt

d) What was held in the case of Carlill v Carbolic Smokeball?

.

e) Discuss the requirements of an offer.

f) How do you terminate an offer?

Question 2

Kennedy advertised his car for sale for RM30,000 in a local newspaper on 3.7.2015. The next
day, 4.7.2015, Bob inspected the car and later wrote to Kennedy enclosing a cheque for
RM27,000 and saying that he would assume the car was his if he did not hear anything from
Kennedy within 3 days.

On 5.7.2015, Trump came to inspect the car and asked whether Kennedy would sell to him for
RM 28,000. Kennedy said he was willing to sell at the price of RM28,500 provided Trump paid
the full amount by cash. Kennedy added that Trump can have till the 8.7.2015 to decide and raise
the money. Trump said ok and that he will be back with the money by then.

On the 6.7.2015, Marcus came with RM28,000 in cash to tell Kennedy that he wanted to buy the
car. Kennedy accepted the money from Marcus and allowed Marcus to drive away the car.
Kennedy then called Trump to inform him that the car is no longer available for sale. Trump was
furious and said that Kennedy had given him till the 8.7.2015 to decide. In fact Trump said he
already has RM28,500 cash to pay Kennedy immediately and demanded that the car be sold to
him. Kennedy said it was too late as the car has already been paid for and taken by Marcus.
Trump threatened to sue for breach of contract.

Please advise Kennedy whether he has a legally enforceable contract in each of the scenarios
and whether he is liable for breach of contract with any of the parties above.

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Question 3

Kaya had promised his wife, Maya, that he would buy her a diamond bracelet for her birthday,
which was on 1 April 2010. However, Kaya did not keep his promise. When Maya reminded Kaya
about his promise, he replied that he had changed his mind about buying her the bracelet.

Maya is disappointed with Kaya and wishes to sue him for breach of contract.

Required:

Advise Maya on her chances of success.

Question 4

On 1st August, Peter wrote to Malik offering his durian plantation to Malik for the price of
RM10,000.00. On 2nd August, Malik wrote back to Peter offering to buy the durian plantation for
RM8,000.00, When Peter refused to accept Malik’s proposal, Malik, on 5th August, wrote to
Peter to accept to buy the durian plantation for RM10,000.00. Now, Peter refuses to sell the
durian plantation to Malik.

Can Malik seek a court order to force Peter to sell the plantation to him for RM10,000?

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Tutorial 4: Contractual Capacity and Consideration

Question 1

a) Julio promised to give his wife Juliet condominium located at Sri Hartamas for her 30th
birthday. However, later he gave it to his secretary Julia. Advise Julia on whether she can
enforce the promise.

b) Ali contracted with Ashley, aged 16, to sell him a vase for RM15,000. Ashley has
refused to honour the contract, stating that it is void. Explain whether the contract is
void.

Question 2

Explain whether Ali is required by the law of contract to fulfil his promises in the following
situations and explain the reasons for your answer.

(a) Ali promises to sell an expensive car to Rafiq for RM1000.

(5 marks)

(b) Ali returns home and finds that Jack had cleaned his house and he promises to pay
RM50 for his work.
(5 marks)
(c) Ali promises to release Frank from a debt of RM400 if Frank pays him RM350.
(10 marks)

Question 3

Ali entered into the following contracts with Syarikat Buildwell & Co, a firm dealing in realty and
construction:

(a) A contract to purchase a piece of land from Buildwell at a price of RM10,000, a price very
much below the market price.

(b) A contract for the lease of an office building at a price of RM1,500 per month, a price which
reflects the current market rate. The term of the lease is stated as ‘for as long as the lessee
wishes’.

Buildwell now refuses to complete the contract for the sale of the land on the ground that the price
is too low. Further it refuses to proceed with the grant of the lease claiming that the contract is not
valid.

Required:

Advise Ali on the legal position in respect of the aforementioned contracts, (a) and (b).

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Question 4

Five years ago, Jamie, an orphan then aged 16, wanted to pursue a degree course in music. Her
uncle, Charles, who had looked after her since her parents passed away when she was 14,
offered to pay for her studies on condition that upon her graduation she would work in his music
studio for a minimum period of two years or alternatively, reimburse him a fixed sum of
RM100,000. She agreed and a formal contract was signed between them.

She has now completed her studies and has been offered a lucrative job with an international
college of music.

She does not wish to work for her uncle nor reimburse him the sum of RM100,000 and seeks your
legal advice as to the validity of the contract.

Required: Advise Jamie.

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Tutorial 5: Contractual Terms

Question 1

Distinguish between term and representation.

Question 2

What is the difference between condition and warranty?

Question 3

What is contra proferentum rule?

Question 4
What is an exclusion clause?

Question 5

Darshini left her best white silk dress to be dry-cleaned. There was a sign in the dry-cleaning shop
which said: “All care taken but no responsibility accepted. ‟Darshini wasn’t certain what this
meant. She took a docket from the cleaner and returned three days later to find that the dress
was marked with brown stains. The dry-cleaner claims that the sign and a detailed exclusion
clause on the back of the docket protect him from liability. Advise Darshini what rights she may
have and whether she is likely to be successful.

Question 6

Tom often travels to Malaysia using the bus service offered by Comfy Tours Sdn Bhd (‘Comfy’).
The following is the sequence of events preceding the issuing of the bus ticket to Tom at
Comfy’s office:

(1) Tom informs Comfy’s ticketing officer, Jane, of his intended destination;

(2) Jane quotes Tom the fare;

(3) Tom pays cash;

(4) Jane issues Tom a machine printed ticket.

There are notices, containing identical terms of carriage, posted at Comfy’s office and on the
back of the printed ticket. Amongst the terms, there was an exclusion clause in red font and bold
print which reads: ‘You agree that Comfy shall not be liable to you for any injury suffered by you
as a passenger, arising from any acts or omissions of Comfy or their employees, whether those
acts or omissions were negligent or otherwise.’

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It turned out that Tom suffered a broken arm when the bus crashed. The accident was caused
by the bus driver’s negligence.

Advise Tom whether the exclusion clause is effective to exclude Comfy’s liability should Tom
sue Comfy for his injury.

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Tutorial 6: Vitiating Factors

Question 1

1. contracts are valid contracts that can be made void at the option of
party who claimed that he has been forced to enter into the contract without free
consent. (Voidable)

2. Section 10- all agreements are contracts if they are made by the of
parties competent to contract, for a lawful consideration and with a lawful object, it’s not
declared as void. (consent)

3. Causing any type of criminal force is known as _.(coercion)

4. involves moral and/or mental pressure. (Undue influence)

5. What are the three elements that you must establish to succeed in a claim for undue
influence?

6. A contract made under fraud is contract. (voidable)

7. it is a false statement made by the representor and which such false representation
induces the other party to enter into a contract. (Misrepresentation)

8. Explain the two elements in misrepresentation.

9. What is the difference between fraud and misrepresentation?

Question 2

(a) Kiki persuaded Rita to buy her business that was running at a loss but which she
represented as a profit making entity. The business failed two months after Rita bought
the business. You are required to advise Rita as to whether she has any rights against
Kiki.

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(b) Kong signed a contract to sell his shares in his business to Hui. He does so after being
threatened by Hui over his safety. Discuss Kong’s rights in this situation.

Question 3

On 4th March 2014, Ahmad, an antique collector, entered into 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 RM50,000 and promised to
pay the balance within one week. On 6th 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 go its independence i.e. 31st August 1957. Ahmad was
very disappointed with what Yatt told him and immediately sent an email to Farisham which stated
that he intended to terminate the contract which he entered with Farisham on the ground that
there was a misrepresentation of fact. Ahmad also wanted to claim back the RM10,000 of deposit
which he has already paid to Farisham.

Advise Farisham.

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Tutorial 7: Discharge of Contract and Remedies

Question 1

A valid contract can be discharged in several ways. Explain the ways.

Question 2

Identify TWO (2) situations where a contract may be frustrated.

Question 3

On 21 September 2011, Arnold bought a large and draughty house, which had a greenhouse in
the garden. He engaged Greenlite Sdn Bhd to fit double glazing to each of the 60 windows in the
house, at a price of RM500 per window. The total price of RM300,000 was to be payable on
completion of the contract. He also engaged Tom a local glazier, to fit new glass, 5mm thick, to
the greenhouse, at a price of RM3,000, again payable on completion of the work.

On 30 October 2011, Greenlite Sdn Bhd informed Arnold that its work had been completed, but,
upon inspecting it later the same day, Arnold discovered that one of the windows had not been
double glazed at all, and that 30 of them still let in draughts. At the same time, Arnold noticed that
Tom had completed work on the greenhouse, but found, on inspecting some spare panes of glass,
that they were only 4mm thick.

Greenlite Sdn Bhd, while agreeing that further work needs to be done, is insisting on a payment
of RM14,500 in relation to the 29 windows that are satisfactory before doing any further work.
Arnold is insisting that all of the work must be completed in accordance with the contract before
he makes any payment.

Advise Arnold as to his rights under his contracts with Greenlite Sdn Bhd and Tom.

Question 4

Maggie is a Professor at the Barossa University who lectures in Cookery and Food Nutrition.
However, she is way too busy with her cookery book and TV cooking show to mark the exams for
her subjects. She engages Simon, a tutor at the University, to mark the exams. For Cookery,
Simon agrees to mark all 100 papers for RM800. This is the standard rate for exam marking. It
is a term of the contract that Simon tallies the marks for all exam questions and writes the total
on the front of each paper.

For Food Nutrition, Simon agrees to mark all 100 papers for RM1,000. The increased rate is due
to the fact that Simon has to mark the papers within three days of receiving them because the
grades need to be finalised in order to award a scholarship being offered by Health Digest for the

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top student in the subject. Again, it is a term of the contract that Simon tallies the marks and writes
the total on the front of each paper.

First, Maggie gives Simon the Food Nutrition exam papers. Simon marks the exams in three days
and hands them back to Maggie. Unfortunately, he has been in such a rush that he has forgotten
to tally the marks on the front of each paper.

The next day, after reviewing the Food Nutrition papers, Maggie gives Simon the Cookery exam
papers. Maggie does not mention the failure to tally the grades on the cover. One week later,
Maggie storms into Simon’s room demanding to know where the Cookery exam papers are.
Simon has marked 95% of the exam papers for Cookery. Maggie yells at him for taking too long
to mark the papers and says that both contracts are finished and she is not paying Simon anything
because he took too long and didn’t do what he was required to do under the contracts.

Advise Simon.

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Tutorial 8: Partnership Law

Question 1

Buttercup, Blossoms and Bubbles formed an academy to train young girls in ballroom dancing.
All of them contributed RM100,000 each and they agreed to share any profits or losses arising
from this venture equally. They agree that Blossoms and Bubbles will be the dance instructors
while Buttercup will control and manage the academy. Unknown to the other two girls, Blossoms
invited several students from the academy to her house for personal training. She charges the
students RM50 per hour for such training.

Last two months, Bubbles was involved in a serious car accident and because of that accident,
she becomes permanently paralysed from the waist down and has to rely on a wheelchair to move
about.

a) Discuss whether Buttercup, Blossoms and Bubbles are partners or not under the definition
of Partnership Act 1961.

b) Assuming that there exist a partnership among Buttercup, Blossoms and Bubbles, has
Blossoms done anything wrong when she invited the students home for personal training? Why?
Support your answer with cases and legal principles under partnership law.

c) Did Blossoms have the authority to conduct class in her home?

d) Bubbles, Blossom and Buttercup were being sued by driver of the other car in the accident for
damage to the car. Blossom and Buttercup refuse to pay saying it was Bubbles’s fault and not
theirs.

e) Finally, after much arguing, they decide that they do not want to go on with this business. They
seek your advice.

Question 2

Kath and Kim want to commence a billboard business. They decided to enter into a partnership
arrangement and formed "BillyBored", a business that provided billboards and related services to
advertising agencies. They agreed to share all profits and losses equally. BillyBored won a
lucrative account to supply and construct a billboard on the corner of Jalan Sultan Ismail and
Jalan Bukit Bintang. Unfortunately, the billboard installed by Kim is not secured and falls down,
injuring Kel who was waiting at the adjacent bus stop. The incident occurred before Kath and Kim
had had the opportunity to arrange public liability insurance. Kim has owns no assets of objective
value.

Advise Kel whether she has any rights against the partnership and/or Kath and Kim?

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Tutorial 9: Law of Tort

Question 1

Ivan went to Pulau Langkawi during his vacation with his friend and it was his first time checking
into Ballibest Hotel. While hanging his clothes into the wardrobe, one of the loose shelf from the
top of the wardrobe crashed onto Ivan’s forehead leaving a deep scar that requires 6 inches
stiches at a private hospital. Apparently, the hotel did not repair the shelf despite complaints from
guests for the past two months.

Despite the injury, Ivan could not go to work for two weeks and his condition worsened because
he did not clean the wound regularly. He was hospitalized subsequently and now the doctor
advices him to go for a plastic surgery to get rid of the scar.

Advise Ivan on his rights under the law of tort.

Question 2

Scott a farmer, hired out his farm to Ringo’s Carnival Sdn Bhd, to hold a funfair. Among many
rides and other attractions, Ringo’s Carnival Sdn Bhd set up a roller coaster. Angela came to the
funfair. She wanted to go on the roller coaster. She paid for a ride on the roller coaster. There
was a sign at the payment counter that read “all patrons must fasten their seat belts immediately
upon sitting down”.

Everyone on the roller coaster fasten their seat belts except for Angela. Once the roller coaster
started, Angela lost her balance when it started moving up and fell on the ground injuring herself.

Advise Angela if she is to legal actions against Scot or Ringo’s Carnival Sdn Bhd or both for
negligence and if they have any defences for her claims.

Question 3

Christy has been feeling rather lethargic and unfit so she signed up with the gym in her
neighbourhood called Gorgeous Shape & Fitness Centre (GSFC). She was attracted by claims
made in the brochure that the gym is equipped with state of the art facilities and has highly
qualified gym instructors.

Christy arranged for her first training session. She went first thing in the morning when the gym
opened at 8am. Being the first session for her, the usual practice for the gym was to assign an
instructor to personally provide a one hour training as well as teaching her how to use all different
facilities in the gym.

She was asked to wait while they assign a personal trainer to her. After waiting for about ten
minutes and being a little restless, Christy decided to try one of the machines on her own as she
did not think it would be that difficult to use the equipment. Dexter was the last user of the

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equipment the night before. He had adjusted the height of the seat but had not fastened the seat
back properly. When Christy sat on it, the seat which was loose, fell off. She sprained her right
arm when she tried to break her fall. She got up rather angrily and was walking towards the
counter to complain, when she slipped on the wet floor which was just mopped by GSFC’s
employee, Elmo. Christy suffered from a head concussion from the second fall. She had to be
hospitalized for 1 week as a result of her injuries.

Advise Christy on her cause of action under the Tort of Negligence and the relevant party/ies to
sue. Give your assessment on whether Christy can successfully claim for compensation for the
injury suffered and discuss the practical obstacles faced by her in the law suit. Support your
answer with the relevant case authorities.

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Tutorial 10: Employment Law

Question 1

State the definition of contract for service provided in the Employment Act 1955.

Question 2

List THREE implied duties of employers with regards to Employment Law

Question 3

List TWO (2) reasons why it is important to determine whether a person performing work is doing
so as an employee or an independent contractor.

Question 4

Samad worked Techtronic Sdn Bhd, an electronic company in Shah Alam. He is known among
his colleagues to be quite notorious. One day he assaulted Aziz, his co-worker, accusing him of
hitting on his girlfriend. Aziz reported this incident to the management who investigated the matter
and suspended Samad for one month. Samad was furious, claiming this was unfair.

Ferhad, who works in the same company, is a heavy smoker. He smokes at the workplace despite
a sign prohibiting smoking at the office premises. Recently he was summoned to the manager’s
office and given a termination letter for ‘misconduct’.

Both Ferhad and Samad wish to pursue this matter.

Advise Techtronic Sdn Bhd if they have anything to be concerned about.

Question 5

Ali is employed as a supervisor by ABC Sdn Bhd which is a construction company. He is paid a
salary of RM1,200 per month. His main function is to supervise and oversee other employees
engaged in manual labour at the construction site. His working hours are from 8am to 7pm.
However, his contract of employment does not provide for the following:

a. Paid public holidays

b. Annual leave

c. Sick leave

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Ali sees his employer about this but when told that he is only entitled to what is stated in the
contract of employment, Ali storms out of the office yelling foul words at his employer who yells
back at Ali not to return to work anymore.

Ali seeks your advice on the following:

a) Whether the contract of employment and working condition has breached any provisions
under the Employment Act.

b) What actions can the employer take against Ali for yelling foul words at his employer?
Explain the procedure that ABC Sdn Bhd should take to initiate an action against Ali.

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Tutorial 11: Law of Agency

1. Describe the relationship of a principal and agent?

2. Can an employee be an agent and why?

3. Is a sole distributor an agent and why?

4. In what circumstances can a person be an agent of ‘necessity’?

5. What is meant by an agency created ‘expressly’ and one created ‘impliedly’.

6. What are the consequences if an agent fails in his duties to the principal?

7. What can an agent do if he is not paid by the principal?

8. Explain what is ‘ratification’ in the law of agency and why would a principal want to ratify
the unauthorised acts of an agent.

9. What is meant by agency by ‘estoppel’?

Question 10

Amitabh has been in the business of “indian spices” which is successfully established in
Chennai for the past 25 years. He now intends to market these spices in Malaysia and has
advertised for agents who may be keen in this business. Muthu, a young entrepreneur wants
to take up the challenge but unsure on the laws relating to creation of agency. He seeks your
advice on the types of agency relationships available before making a decision.

Advise Muthu.

Question 11

Alexis, a courier, was to deliver a pet python to Percy. However, on arriving at Percy’s house,
she found the place deserted and a note on the front door stating that Percy had been called
overseas on urgent business. Alexis took the python to a pet hotel and paid for its care until
Percy returned. For her efforts, is Alexis protected under the law of agency?

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Tutorial 12: Company Law

Question 1

In January 2011, Salman who owned a vacant bungalow lot, agreed to sell it to Maryam for
RM300,000. The transfer of the lot was to be completed by the end of March 2011. Salman
discovered that other lots in the vicinity were being sold for higher prices. He changed his mind
about selling his lot to Maryam.

He proceeded to set up a company, Tatipu Sdn

Bhd of which he was the majority shareholder and managing director. His wife was the other
director. He transferred his land to the company.

He informed Maryam he did not want to sell his land as it was sold to a 3rd party i.e. the
company. Maryam wishes to sue Salman and Tatipu Sdn Bhd for breach of contract and claim
for specific performance. Advise her.

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Tutorial 13: Sale of Goods

1. With reference to the Sale of Goods Act 1957 and decided cases, explain the following:

(i) Implied condition as to quality or fitness.

(ii) Implied conditions in a sale by sample.

2. Explain the meaning of a ‘condition’ and a ‘warranty’.

3. Merry Flour Mills received an order for the delivery of 50 kg of ‘Blue Fine’ flour to Sunshine
Bakery. What was delivered was only 10kg of ‘Smooth Silk’ flour. Sunshine was not satisfied.
With reference to the Sale of Goods Act 1957 advice Sunshine.

4. When does a buyer become the owner of the goods he has bought?

5. What is the meaning of ‘nemo dat quod non habet’?

6. Explain the exceptions to the maxim ‘nemo dat quod non habet’.

7. What are the conditions for there to be ‘performance’?

8. What remedies does a buyer have if the seller breaches the contract of sale?

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