2.8 Assessment Questions

2.8 ASSESSMENT QUESTIONS

1. The word contract is defined under _______________

A. Section 2(a) of Contract Act 1950 B. Section 2(c) of Contract Act 1950 C. Section 2(e) of Contract Act 1950 D. Section 2(h) of Contract Act 1950

2. The main elements of contract include all the following EXCEPT

A. Acceptance B. Consideration C. Invitation to treat D. Capacity

3. Following statement shows a person who is competence to enter a contract

EXCEPT

A. Age of majority B. Sound of mind C. Insane D. Qualified by law

4. There are THREE (3) types of consideration EXCEPT

A. Executed B. Past consideration C. Accessory D. Executory

5. The leading case “Balfour v. Balfour” is related to ________________.

A. The intention to create legal relation B. The possibility of performance C. The lawful object D. The legal formality

6. Any modification of the offer is named as _____________ and it is a rejection of the original offer.

A. Acceptance B. Invitation to treat C. Counter offer D. Counter acceptance

7. John is 12 years old. His father passed away two years ago and his father left him a piece of land. John entered into a contract to sell the land to his aunt. Is there a valid contract in this case?

A. The contract is a voidable contract. B. It depends. If John wants to continue with the contract, he is able to do so. C. No. John cannot enter into the contract, he is a minor. D. The contract is a valid contract.

8. X applied for remedy from the court since Y could not complete the job as mentioned in the contract made between X and Y. What is the remedy available for X?

A. Damages B. Consideration C. Intention D. Ownership

9. A horse is put on auction by Ally, a licensed auctioneer. The reserved price has been fixed at RM45,000. Under the law of contract, Ally is making ________________.

A. an acceptance B. an offer C. an invitation to treat D. a counter-offer

10. A counter offer destroys the original offer based on the decided case of ____________.

A. Carlill v Carbolic Smoke Ball Co. Ltd [1893] B. Harrison v Nickerson [1873] C. Felthouse v Bindley [1862] D. Hyde v Wrench [1840]

11. Aaron Aziz is a high school senior; is 17 years old. He operates a business that runs printing and photostat. He made a contract with Kedai Buku Mesra Sdn Bhd to supply the paper. He later on did not pay for the paper provided by Kedai Buku Mesra Sdn Bhd. Decide whether Kedai Buku Mesra Sdn Bhd can take legal action on Aaron Aziz.

12. En. Kamal Adli owns Seri Mawar Florist Sdn Bhd in Kuantan. En. Kamal Adli intends to sell his firm to En. Fizo Omar and had entered into a contract of sale with him. Advise En. Kamal Adli as to the three remedies available to En. Fizo Omar in the event En. Kamal Adli breaches the contract of sale.

13. Cik Mya Husna had contracted to supply fifty pieces of puddings to Sweety Cake House on every Friday. On one Friday, Cik Mya Husna did not send any pudding to the cake house. The manager of the cake house called up Cik Mya Husna and was informed that she had left for her hometown on Thursday. The manager was furious as Cik Mya Husna left without informing him about it.

a) State the offence that has been committed by Cik Mya Husna.

b) The manager comes to you for advice. Advise him as to the possible remedy.

14. Madam Wong wants to give a piece of land to her daughter, Amelia, on her 21st birthday. Since Amelia will not be paying any money to her mother, Madam Wong is worried about the transfer of her land to Amelia, will be void under the virtue of Section 26 of the Contracts Act 1950.

Based on the situation given, you are required to:

a) Identify an issue arises on the situation.

b) Explain the relevant provision of the Contract Act 1950 on the issue.

c) Briefly discuss ONE (1) relevant case to support your answer.

d) Conclude the issue.

15. On 1st January 2017, Linda offered to sell her set of jewelleries to Preety for RM10,000. On 4th January 2017, in reply, Preety made a counter-proposal to purchase at RM9,000. However, on 14th January 2017, when Linda refused to accepts this offer, Preety wrote to Linda saying that she was prepared to pay the original sum demanded.

Based on the above situation, you are required to:

a) State an issue to the situation above.

b) Discuss the relevant provisions of the Contracts Act 1950.

c) Explain a relevant case to support your answer.

d) Conclude your answer.