FACULTY OF BUSINESS MANAGEMENT

BMLW5103
BUSINESS LAW

ASSIGNMENT
SEPTEMBER 2014 Trimester

Date Assigned: 20 September 2014

Due Date:

30 October 2014

Lecturer:

Fayyaz Shathir

Weighting:

60%

ANSWER GUIDE
1.

This is an individual assignment.

2.

The assignment will be evaluated based on accurate explanations

which fulfilled the requirements of the questions and supported
by credible points.

3.

You are required to undertake some degree of research through

scholarly articles and other materials such as newspaper articles
available to support your analysis and evaluation.

4.

References in APA style must be included and taken from reliable

sources such as books and journals.
Refer to: http://www.emich.edu/halle/style_guides.htmlto view
the details and samples of APA style.

5.

Plagiarism, copying and cheating will NOT be awarded any

mark, and disciplinary actions will be taken instead.

6.

The cover of the assignment should include details as required.

7.

Completed assignment must be placed on the Assignment Drop

Box located in reception before 6:00pm of 30 October 2014
and upload a softcopy to Rose Student Portal by 11:59pm of
due date.

8.

This assignment contributes 60%of the total marks for the

course.

9.

If Extensions on Assessment is granted, the approved assignment

extension form should be submitted along with the Assessment.

OUM BUSINESS SCHOOL

ASSIGNMENT SUBMISSION AND ASSESSMENT
_________________________________________________________________________
BMLW5103
BUSINESS LAW
SEPTEMBER 2014
_________________________________________________________________________
INSTRUCTIONS TO STUDENTS
1. This assignment contains question that is set in English.
2. Answer in English only.
3. Your assignment should be typed using 12 point Times New Roman font and 1.5 line spacing.

4. Your assignment should be prepared individually. You should not copy another persons assignment.
You should also not plagiarise another persons work as your own.
EVALUATION
This assignment accounts for 60% of the total marks for the course.

ASSIGNMENT QUESTION

PURPOSE
To evaluate students understanding on the elements which effect free consent in a contract
and the formation and dissolution of a partnership.
REQUIREMENT
Students have to answer ALL QUESTIONS and justify their answers with correct provisions
under respective statutes, relevant precedents and case laws which connote to the correct
answers.
QUESTION 1

a)

In simple language, a misrepresentation is a representation that is untrue. It is a false

statement made by one party to the contract to the other, before, or at the time of
contracting, on which that other party relied on in contracting.
Per Abdul Malik Ishak J. in Travelsight (M) Sdn Bhd & Anor v Atlas Corp Sdn Bhd [2003]
6 MLJ 658.
With reference to the Contracts Act 1950 and relevant cases, discuss the circumstances
and elements of misrepresentations which cause a contract to be voidable.
[15 marks]

b)

On 4 March 2014, Ahmad, an antique collector, entered 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
RM 50 000 and promised to pay the balance within one week. On 6 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 got its independence, i.e. on 31 August 1957. Ahmad was very
disappointed with what Yatt told him and immediately sent an e-mail 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 RM 10 000 of deposit which he has already paid to Farisham.
Advise Farisham.

[15 marks]
[TOTAL: 30 MARKS]

QUESTION 2

Raju and Kamala set up a consultancy firm under the name of Expert Consultancy in June 2000.
The partnership agreement clearly stated that the partnership shall remain for a ten year
period. In December 2010, Kamala took a personal loan amounting to RM100,000 from Bank
Business but failed to pay three installments. Kamala later assigned her interest in the firm to
Bank Business. Raju was not happy with the assignment and gave a notice to Kamala for
dissolution of the firm. Raju decided that if Kamala refused to accept the notice, he would
apply for dissolution by a court order.

Discuss:
a)

The right of Kamala to assign her interest in Expert Consultancy to Bank Business.
(10 marks)

b)

Discuss the ways for dissolution of a partnership. What are the grounds that Raju could
use to apply for dissolution of partnership by way of courts order?
(20 marks)
[TOTAL: 30 MARKS]

[TOTAL: 60 MARKS]