Business Law



OBJECTIVE: To evaluate the students understanding in principles related to formation of contract (proposal and acceptance), formation of partnership contract and rights of hirer under the Hire Purchase Act 1967. INSTRUCTIONS: Students have to discuss all the questions and justify their answer with correct provisions under respective statutes and relevant precedents. Question 1 On 25th April 2013, Curry Sdn Bhd sent a fax to sell 2000 kilograms of curry powder to Food Sdn Bhd at RM5 per kilogram. The fax clearly stated “Please telephone or fax an acceptance before 2nd May 2013”. Food Sdn Bhd faxed a letter accepting Curry Sdn Bhd’s proposal at 11 p.m on 30th April 2013. The fax’s report clearly stated that the letter has been sent to Curry Sdn. Bhd. As it was a public holiday on 1st May 2013, the office of Curry Sdn Bhd was closed and nobody knows about the acceptance of Food Sdn Bhd. It was only on the 2nd May 2013 that a staff of Curry Sdn Bhd read the fax. i.) Discuss whether the acceptance made by Food Sdn Bhd is valid. [15 marks]


What would be your answer if Curry Sdn. Bhd sent a fax to withdraw the offer on 1st May 2013? [15 marks]

Question 2 Healthy Sdn Bhd is a company which sells pharmaceutical products in Johor. In July 2013, Healthy Sdn Bhd received an offer from Good Care Sdn Bhd to become its partner in selling pharmaceutical products which Good Care Sdn Bhd manufactured. Mr.Ramu, who is the General Manager of Healthy Sdn Bhd seeks your advice on formation of a partnership in particular between two companies. With reference to the Partnerships Act 1961 and relevant case law, advise Mr.Ramu. [15 marks] 1


Question 3 Suka Jual Sdn Bhd sells sewing machines on both cash terms and on hire-purchase. Tina, a fashion designer student at Good College bought a new sewing machine from Suka Jual Sdn Bhd on hire purchase. However, after she...