ABBL3203 Business & Trade Law – Tutorial 1: The Legal Framework
QUESTIONS:
1. Define law and how are laws classified? Briefly explain each classification.
2. Briefly explain the sources of law in Malaysia?
3. Describe the advantages and disadvantages of subsidiary legislation.
4. Explain how the judges make laws?
5. Describe the advantages and disadvantages of judicial precedent.
6. Describe the four methods judges use to interpret the law.
7. Describe the functions of the Legislature, Executive and Judiciary in the
government system and the doctrine of separation of powers.
8. Explain the Judiciary functions and Malaysian court structure.
9. Briefly explain on the courts with special jurisdiction.
10. Describe 2 courts established under the state law.
1
ABBL3203 Business & Trade Law – Tutorial 2: Offer and Acceptance
QUESTIONS:
1. State the elements that must be present to form a contract.
2. What is a proposal / offer?
3. Explain the types of offer.
4. What are the requirements of a proposal?
5. Explain what is an invitation to treat? Give the examples.
6. In contract law, what is acceptance?
7. State the rules of acceptance.
8. In his Facebook, Richard offered for sale his latest tablet for only RM1,500. Mervin
knew that this was a real bargain as the tablet is worth much more. Mervin replied
that he agrees to buy it for RM1,200. Richard answered, ‘No way’. Mervin then
stated that he will accept for RM1,500. Richard did not reply to Mervin. Advise
Mervin.
9. Ben email to his friend Zoe offering to sell his laptop for RM1000.00. In his email
he stated a condition that if he does not get Zoe’s reply in 3 days he considers it
sold. Zoe only read her email on the 4th day. Advise Ben.
10. When and how can a proposal be revoked?
1
ABBL3203 Business & Trade Law – Tutorial 3: ITCLR & Consideration
QUESTIONS:
1. Briefly explain the two (2) legal presumptions of intention to create legal relations in
respect of commercial and non-commercial agreements.
2. Briefly explain the 3 categories of consideration.
3. Briefly state THREE (3) situations where a contract can be valid without
consideration.
4. What is the meaning of “Consideration need not be adequate but must be of some
value”?
5. Does part payment/ pay lessor is good consideration?
6. Can consideration be provided by other persons instead of the promisor?
7. Samuel promised to help her sister, Rachel to pay for her college accommodation
fees during her studies. Samuel’s elder brother, upon being told of Samuel’s
promise to Rachel transferred 10% of his shares in his company to Samuel on
condition that Samuel must continue to support Rachel until she leaves the college.
Samuel has since failed to fulfill his promise for the last three months.
8. Papa Bear promise to give his son, BoyBoy RM1, 000. Papa Bear puts his promise
to BoyBoy into writing and signed on a piece of paper. Can the agreement be
made valid even there is no any consideration from BoyBoy?
Would it be different if BoyBoy is Papa Bear’s adopted son?
1
ABBL3203 Business & Trade Law – Tutorial 4: Capacity & Terms of Contract
QUESTIONS:
1. Which types of persons are presumed to have no capacity to enter into a contract?
2. Who is minor? Support your answer with case law and Section.
3. What are the exceptions that allows minor to make contracts.
4. William has scored 20As in SPM. Due to his excellent results, he was offered a
scholarship in University of Oxford and William entered into scholarship agreement
with Oxford. At the time he signed the agreement with University of Oxford, William
just celebrated his 16th birthday. Determine whether there is valid contract? And
would he be liable if he has breach the contract?
5. What kind of persons is categorized as of unsound mind and why a person of
unsound mind is incapable of contracting?
6. What are terms in a contract?
7. Explain the difference between term condition and warranty.
8. What is innominate terms?
9. What is an exemption/ exclusion clause? How an exemption/ exclusion clause can
be incorporated into a contract?
1
ABBL3203 Business & Trade Law – Tutorial 5: Vitiating factors (Void & Voidable contracts)
QUESTIONS:
1. Briefly explain the difference between a Void and Voidable contract?
2. What is meant by ‘free consent’?
3. Briefly define the Coercion, Fraud, Undue Influence and Misrepresentation.
4. Mistake is said to be of two types. Explain the difference.
5. Tom is the Chairman of Cheezy Berhad and he hold 55% of shares in the
company, which made him as the majority shareholder of Cheezy Berhad. Jerry
always wanted to be in control in the company. Jerry threaten Tom by placing a
knife on his neck to get him to sign the agreement of transfer of shares to Jerry.
Tom was too frighten and he signed the agreement. Determine whether the
agreement is valid?
6. Mrs Teo wish to purchase another car as her daughter has been using her car to
travel to work. So, Mrs Teo approach Mr Tee Pu Kuat, a car dealer, to purchase a
car. After 2 weeks, Mr Tee called Mrs Teo and asked her to sign the purchase of
car agreement. However, the agreement that Mrs Teo signed was actually to sell
her old car. Mrs Teo was shock and she would like to sue Mr Tee. Advise Mrs Teo
whether she can sue Mr Tee.
7. What is the effect to the contract if the consideration was illegal/unlawful?
8. What is the consequence of void and voidable contracts?
1
ABBL3203 Business & Trade Law – Chapter 6: Discharge of Contracts and Remedies
QUESTIONS:
1. What is the meaning of discharge of contracts and what are the methods to
discharge a contract?
2. State the ways in which a contract may be discharged and briefly explain each of
them.
3. Under Section 57, with reference to case law, explain the following circumstances/
instances that would render the contract discharge by frustration and the
consequences to the contract.
a) Outbreak of War
b) Destruction of subject matter
c) Non-occurrence of particular event
d) Death or incapacity for personal services
e) Supervening illegality / Statutory prohibition
4. What are the remedies available to the innocent party in a breach of contract?
Explain each of the remedies.
5. What is the meaning of ‘Mitigation of Loss’? Discuss.
6. Is specific performance a compulsory remedy and if so, when will the court award
such remedy? Discuss briefly.
7. In what situations will the court refuse to grant specific performance?
8. Alex entered into a contract with Nick to purchase Nick’s car, Toyota Vios for
RM82,000. Unfortunately the car had been stolen a few hours after they entered
into the contract. Alex have not paid or collect the car from Nick. Explain whether
there is still a contract between Alex and Nick.
1
ABBL3203 Business & Trade Law – Tutorial 7: Law of Agency
QUESTIONS:
1) Who is agent and principal?
2) Briefly explain 5 ways in which an agency may be created.
3) Discuss how an agency by estoppel may established and support your answer with
relevant case law.
4) Explain, using case law if any, how an agency by necessity may arise.
5) List the duties of the agent towards his principal.
6) An agent’s authority may be either actual or apparent. Briefly describe the
difference between actual authority and apparent authority, with case law if any.
7) Briefly state the various ways in which an agency can be terminated.
8) P appoints A as her agent, instructing A to buy a lady's watch on her behalf costing
not more than RM5,000. A saw a RM10,000 ladies watch which P had always
wanted, on sale for RM6,000 and bought the watch on behalf of P costing RM6k. P
is very upset and refuses to pay for the watch. Advise A as to whether P can refuse
to pay for the watch.
1
ABBL3203 Business & Trade Law – Chapter 8: Sale of Goods Act 1957 (Part 1)
QUESTIONS:
1) What is a Contract of Sale of goods?
2) Explain the difference between a sale and an agreement to sell?
3) Joyce want to sell her Business Law textbook to Judy for RM10. However, Judy
does not has any money to pay Joyce. So, Judy offer to exchange her necklace for
the textbook instead. Discuss whether Joyce and Judy have entered into a contract
of sale of goods under SOGA?
4) Explain the meaning of the following goods:
a) Existing goods
b) Specific goods
c) Ascertained Goods
d) Unascertained Goods
e) Future Goods
5) Explain the following implied terms under the Sale of Goods Act 1957.
a) Stipulation as to time
b) Implied condition as to Title
c) Implied warranty as to Quiet Possession
d) Implied warranty that goods are free from encumbrances
e) Implied condition as to quality or fitness
6) Michael owns a television and electronics store and sells different types of
television sets. Mary went to Michael’s store and her order stated “One Toshiba
Pioneer Series 3” television set. However, Michael did not have that particular
model in his shop and delivered to Mary a “Toshiba Pioneer Series 2” television set
which was quite similar to the one Mary ordered. Advise Mary on whether she can
refuse to accept the “Toshiba Pioneer Series 2” television set.
1
ABBL3203 Business & Trade Law – Chapter 9&10: Sale of Goods Act 1957 (Part 2)
QUESTIONS:
1) Differentiate between ownership/ title and possession.
2) Discuss the following rules on passing of property:
a) Section 18 – Goods must be ascertained
b) Section 19 – Property passes when intended to pass
c) Section 20 – Applies to specific goods already in a deliverable state
d) Section 21 – Specific goods yet to be put into deliverable state
e) Section 22 – Specific goods in deliverable state when seller has to do
something to ascertain price
f) Section 23 – Sale of unascertained goods & appropriation (future goods)
g) Section 24 – Goods sent to buyer on approval or ‘on sale or return’
3) What is passing of risk?
4) Briefly explain the maxim ‘nemo dat quod non habet’. What are the exceptions to
this rule?
5) What is delivery of goods and acceptance of good?
6) Briefly explain the remedies available to the buyer.
7) Who is an unpaid seller and what are the rights of an unpaid seller?
8) Simon, an art collector, bought 10 Picasso paintings from Joe after spending hours
selecting the suitable paintings. Each painting was valued at RM10,000. All the
paintings cost RM100,000. First payment of RM50,000 was paid by Simon before
he left the painting boutique. Payment was agreed to be made in nine instalments
of RM50,000. The paintings were delivered to his art studio. The following day a
crane crashed over the building and all the paintings were crushed under the crane.
Explain with reference to the relevant sections in the Sales of Goods Act 1957
when property will pass to the buyer and name the party who should bear the loss.
1
ABBL3203 Business & Trade Law - Chapter 11: International Sales
QUESTIONS:
1) Describe the nature of an international trade agreement.
2) Discuss the essential clauses that must include in an international trade
contract.
3) Explain the meaning of the two terms under INCOTERMS:
a) Cost, Insurance and Freight (CIF);
b) Cost and Freight (CFR);
c) Free Alongside Ship (FAS);
d) Free on Board (FOB)
4) Compare and contrast the following:
a) The seller’s obligations and responsibilities under INCOTERMS ‘CIF’
with that under ‘FOB’.
b) The buyer’s obligations and responsibilities under INCOTERMS ‘CIF’
with that under ‘FOB’.
5) How does the time for the passing of risk differ between INCOTERMS ‘FOB’
and ‘FAS’?
6) Paul contracted to sell 10 tonnes of mangoes to Jack based on INCOTERMS
2000 ‘CIF’, shipment to be made by sea from Malaysia to China.
On the agreed day of shipment, Paul’s workers unloaded the cargo at the
harbour but the ship was unavailable. Because of the delay, the durians had to
be stored at a cargo complex. The ship finally arrived two days later and as a
result of the delay, 2 tonnes of the mangoes rotted. While the rest of the cargo
was being loaded, 3 tonnes fell into the sea and could not be recovered. The
rest were safely loaded onto the ship. During the journey, the ship encountered
difficulties and sank.
No insurance was taken out over the goods. Jack contacted Paul but Paul
denied responsibility for all the losses, damage and storage charges.
Advise Jack on his legal position and the remedies that he may pursue against
Paul.
1
ABBL3203 Business & Trade Law – Chapter 12 & 13: Law of Insurance
QUESTIONS:
1) Define the term ‘contract of insurance’.
2) Briefly explain the classification of insurance business.
3) Describe the elements that must be present to make a valid claim under an
insurance policy.
4) Briefly explain the principles governing “insurable interest”.
5) Why is a contract of insurance described as one of uberrimae fidei?
6) List the requirements for a claimant to make a successful claim under a contract of
insurance.
7) Briefly explain the nature of a contract of insurance.
8) Jessie insured her house against fire risk for RM 300,000 with Sure Claim Berhad,
an insurance company. Three years later, the house burned down completely. At
that time, the house was worth RM 250,000. Jessie made a claim for RM 300,000
and insisted that Sure Claim Berhad pays her that sum. Advise Jessie.
1
ABBL3203 Business & Trade Law -Chapter 14: Law Relating to Negotiable Instruments
QUESTIONS:
1) State and explain the types of negotiable instruments.
2) Describe the characteristics of the following:
a) A bill of exchange
b) A cheque
c) A promissory note
3) Explain the time for payment under a bill of exchange:
a) ‘payable on demand’;
b) ‘payable at a determinable future time’.
4) Who are the parties involved where payment is made by cheque?
5) State the material alterations in a cheque.
6) Explain the rights, duties and liabilities of a banker when dealing with cheques.
7) In what circumstances is the bank’s obligation to pay on a cheque is
terminated?
