BAAF 501

COMMERCIAL LAW

LESSON PLAN

PREPARED BY Miss Yap Pek Jiuan

 Contents
CONTENTS PAGES
INTRODUCTION 2
HOW TO USE THE LESSON PLAN 2
ASSESSMENT 2
ASSIGNMENT 3
TEST AND QUIZZES 4
FINAL EXAMINATION 5
GRADING SYSTEM 6
ATTENDANCE POLICY 6
TEACHING DURATION 6
TEACHING METHODOLOGY 6
SUBJECT WEEKLY PLAN 6 - 12
REFERENCE MATERIALS 12

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 INTRODUCTION

Of all the branches of private law, the law of Contract is perhaps the most important for the
average individual because it encompasses all sorts of commercial and non-commercial
transactions. The Law of Contract is found mainly in case law and in several statutes. The
principal statute dealing with contracts is the Contracts Act 1950 which is a re-enactment of the
Contracts Ordinance 1950 previously applicable throughout Malaysia.

This subject aims to achieve the following objectives upon completion:

• To provide students with a precise introduction to the concept and sources of law
emphasising more on the various aspects of contract law.

• To expose students to the legal limitations and possibilities of business transactions

• To familiarise the students with the important principles in Contract Law regarding the
requirement of consideration, the meaning of terms of the contract, the legal effect of an
exclusion clause and the legal limitation surrunding the use of exclusion clause, the concepts
of void and voidable contracts and discharge of contract.

• To expose the students to the significance of the Sale of Goods Act 1957 as a piece of
consumer protection legislation based on the basic principles of contract law.

HOW TO USE THE LESSON PLAN?

Lesson Plan is a learning tool to guide students about this module. It contains basic information
regarding:

• Assessment
• Attendance Policy
• Teaching duration

i. It provides the following information on weekly basis:

ii. Topics to be covered
iii. Learning objectives
iv. Assignments Given/Due
• References

Use this lesson plan to plan and prepare yourself for lectures, tutorials, assignments and
examinations.

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 ASSESSMENT

Students’ Assessments in this course are based on the following:

1. Continuous Assessment
Lecturer - marked Assignment 1
Lecturer - marked Assignment 2
Lecturer - marked Assignment 3 40%
Lecturer – marked Assignment 4

2. Mid Term Exam 10%

3. Final Exam 50%
Total 100%

Results for the assignments, quizzes (if relevant) and mid term examination will be made
available to the students before or on week 13.

ASSIGNMENTS

You will have various individual assignments and group assignments during the semester.
Assignments will be given between week 1 & week 13. Assessment of your assignments will
take into account:

• relevance of your answer to the question or task set

• clarity of expression
• supporting documentation for arguments
• proper acknowledgment of documentation and use of a bibliographic convention
• logical planning and sequence
• use of inclusive language
• overall presentation, including correct grammar, spelling and punctuation
• Comprehensive coverage reflecting engagement with set readings, text(s) and other relevant
materials.
Penalties for late submission

Late submission of assignments will incur penalty of 10% deduction in marks per week.

Extensions

Extensions will only be granted in special circumstances such as extended illness. Requests
must be made to the lecturer before the due date with suitable supporting written evidence.

Remarking

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If a student requests and is granted a remark of their assignment, the remark, even if less than the
original mark, replaces the original mark.

Resubmission
Students will not be able to resubmit assignments. Therefore it is important to read the
information available and discuss any queries or problems with your tutor before the assignment
is due.

Plagiarism and referencing

Plagiarism is regarded as a serious issue within the university system with severe consequences
for students who have been found to have plagiarised, often the minimum penalty being zero for
the assignment. Students must ensure that any work submitted for assessment is genuinely their
own and is not plagiarised. Plagiarism is using others' ideas and words without clearly
acknowledging the source of that information.
Academic Misconduct
BE WARNED: Academic misconduct as defined below is a serious issue within the university
college system with severe consequences for students who have been discovered to have been
involved, often the minimum penalty being zero for the assignment.
(i) Submitting another student’s work in whole or in part, where such
assistance is not expressly permitted in the course information booklet;

(ii) providing assistance to a student in the presentation of individual work,

where such assistance is not expressly permitted in the course information booklet.

TESTS/QUIZZES

Short tests and quizzes will be given during the duration of the course and are designed to
evaluate the students’ knowledge and understanding of issues on topics which the students have
learned during the lectures.
FINAL EXAMINATION

Final Exam format is as follows:

• Section A – Short Essays (15 questions @ 4 marks) Total: 60 marks

• Section B – Long Essays/Case Studies (2 out of 3 questions) Total: 40 Marks

Grand Total : 100 Marks

GRADING SYSTEM

Marks Grade Grade Points Description

90 - 100 A+ 4.00 PASS With
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85 - 89 A 3.67 DISTINCTION
80 - 84 A- 3.55

75 - 79 B+ 3.33 PASS With

70 - 74 B 3.00 CREDIT
65 - 69 B- 2.67

60 – 64 C+ 2.55 SATISFACTORY
55 – 59 C 2.33 PASS
50 – 54 C- 2.00

47 – 49 D+ 1.67 PASS
43 – 46 D 1.33
40 – 42 D- 1.00

Below 40 NC 0.00 NOT COMPLETE

ATTENDANCE POLICY

Attendance is mandatory. Lecturers are required to keep attendance records and report absences.
Because of the interactive nature of this course attendance is an essential part of the educational
experience. KLMUC/CCOT expects students to exercise good judgment regarding attendance.
Students accept full responsibility for ensuring that personal learning does not suffer from
absence. All students are expected to attend every scheduled meeting of each class on time.
Exceptions may be made for work related activities, illness or valid emergency situation.

If a student’s attendance is less than 70% he/she may not be allowed to sit for the final
examination. Punctuality is important. The lecturer may not allow student(s) to enter the
classroom if he/she is a habitual latecomer.

TEACHING DURATION

Duration of module is 14 weeks with 3 hours of lecture per week.

TEACHING METHODOLOGY

The primary teaching techniques used are:

1. Lecture (supported by textbooks and references)

2. Discussion methods such as tutorial, oral presentation (to stimulate the students’ interests
and to assist better learning.)
3. Grouping (to place students of the same achievement level together)
4. Tutoring outside class hours (to assist referral or weak students.)

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Semester: 24 Jan 2011 to 22 May 2011 (Final Exam: 16 – 22 May 2011 (wk 15))

SUBJECT WEEKLY PLAN

BAAF 501 Commercial Law

WEEKLY PLAN

This schedule will help you to plan your study over the semester:

Week Chapter Topics to be Details Seminars/Submission of

covered Group – cum presentation
and Individual assignments
1 1 Introduction to the 1. Understand the
Concept and meaning of law
Sources of Law 2. Understand the
classification of law
1. Adversarial into Private and Public
System Law
2. Public and 3. Understand the
Private Law difference between civil
3. Civil Law and law and criminal law
Criminal Law 4. Understand the sources
of Malaysian law,
4. Written Law
namely the Federal and
and Unwritten
State Constitution and
Law
unwritten law in the
5. Courts forms of courts
Hierarchy decisions, customs,
6. Courts’ Islamic Law and the
jurisdiction English Law.
5. Understand the
Principle of Binding
Precedents in judicial
law making.

6. Understand the
meaning of ratio
decidendi and obiter
dicta
2 Offer and 1. Understand the 1st class assignment – submit
31 Jan– Acceptance concepts of Offer and on 29 June 2010 in class. Due
19 June 1. Distinguished Invitation To Treat. on 6th July 2010 in class.
2010 from Invitation 2. To understand settled
to treat examples of invitation
2. Communication to treat.

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 of the offer. 3. Understand the concept
3. Communication of Acceptance and its
of the importance.
acceptance
4. Exceptions to 4. Understand the Postal
the need for Rule of Acceptance
communication
of the 5. Understand the legal
acceptance. effect of a counter-offer
5. Method of
acceptance
6. The end of an
unaccepted
offer.

3 Consideration 1. Understand the

21 – 26 requirement of
June 1. Definition of consideration
2010 Consideration 2. Understand the types
2. The Rationale of of considerations such
consideration as Executory,Executed
and Past Consideration
3. Exception to General
Rule
4. Understand the rule
regarding adequacy
and sufficientcy of
Consideration.
4 Other Formative 1. Understand and
28 June requirements: describe the principle
– 3 July intention, certainty regarding Intention to
2010 and completeness. create legal relations
1. Intention to 2. Understand the legal
create legal capacity of minors and
relations. persons of unsound
2. Capacity to mind
contract. 3. Understand the
3. Certainty of enforceability of
terms and contracts with minors
vagueness 4. Understand the
4. Privity of requirement of
Contract certainty of contract
5. Understand the
principle of Privity of
Contract.

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 5 Terms of Contract 1. Understand the 2nd class assignment – submit
5 - 10 1. Terms and difference between on 6 July 2010 in class. Due
July Representations express and implied on 13th July 2010 in class
2. Terms of a terms.
Contract 2. Be able to distinguish
3. Express Terms between a condition
4. Implied Terms and a warranty
5. Conditions and 3. Be able to understand
Warranties the manner in which the
6. Exclusion courts and the
parliament imply terms.
Clause and
4. Describe and define
Rules of
exclusion clause
Incorporation
6 Voidable and 1. Understand the
12 - 17 Void Contracts meaning of voidable
July 1. Voidable contract.
2010 contract 2. Understand the various
2. Factors causing factors which can
a contract to be cause a contract to be
voidable voidable.
3. Void contract 3. Be able to distinguish
4. Factors causing a voidable contract
a contract to be from a void contract.
void 4. Understand the
meaning of void
contract
5. Understand the various
factors which can
cause a contract to be
void.
7 Discharge and 1. Understand how a
19 – 24 Remedies: contract can be
July 1. The ending of a discharged by
2010 contract by agreement.
performance and 2. Understand how a
breach contract is discharged
2. Remedies due to performance.
following a 3. Understand how a
breach of contract can be
contract. discharged by
3. The ending of a impossibility.
contract by 4. Understand how a
performance and contract is discharged
breach due to a breach on one
4. The ending of a party.
contract by
impossibility
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 8 Discharge and 1. Understand the
26 – 30 Remedies: purpose of the remedy
July of damages to
2010 Remedies following compensate the
a breach of contract. claimant following a
breach of contract.
2. Understand the rules
pertaining to proving
loss following a breach
of contract
3. Understand the
discretionary nature of
the equitable remedies
such as specific
performance and
injunction.
4. Understand the
guidelines regarding the
exercise of the court’s
discreion in granting
specific performance
and injunction.
9 Sale of Goods Act 1. Be able to define
2–7 1957 goods
Aug 1. Definition of 2. Be able to
2010 Sales of Goods differentiate between
Contract a sale and an
2. Formation of the agreement to sell
Contract of Sale 3. Understand the
3. Implied Terms difference between a
under the SOGA condition and a
1957. warranty
4. Transfer of 4. Understand the legal
Ownership from significance of the
Seller to Buyer implied conditions
5. Transfer of Title and implied
by Non-Owner warranties under the
6. The Transfer of SOGA 1957.
Risk 5. Describe and
understand the
importance of the rule
on transfer of
ownership and
transfer of risk in
goods.

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 10 Sale of Goods Act 1. Be able to understand
9 – 14 1957 the buyer’s duty to
Aug accept goods and the
2010 1. Performance of right to rejects goods
the Contract which are supplied in
2. Duties of the breach of seller’s duties
Buyer under the SOGA 1957.
3. Duties of the
Seller 2. Be able to understand
4. Meaning of when acceptance of the
delivery goods take place under
the SOGA 1957.

3. Be able to understand
the seller’s duties under
the SOGA 1957
pertaining to delivery
of goods.

4. Be able to understand
the implication of S. 62
of the SOGA 1957 in
allowing the seller to
exclude liability for
breach of a contract of
sale of goods on his
part.
11 Sale of Goods Act 1. Understand the scope of
16 – 21 1957 the buyer’s right to
Aug 1. Buyer’s examine the goods
2010 Remedies for before and after
Breach of the acceptance of the
Contract of goods.
Sale of Goods 2. Understand the scope of
2. The Seller’s the buyer’s right to
Remedies reject the goods before
and after acceptance of
3. Privity of the goods.
Contract 3. Understand the
importance of the
remedies of lien and
stoppage in transit for
an unpaid seller.
4. Understand the
importance of damages
and the right of resale
to the seller when
confronted with a

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 defaulting buyer under
the contract of sale of
goods.
5. Understand the
applicability of the rule
of privity of contract
regarding enforceability
of a contract of sale of
goods.
12 Partnership Law 1. Definition and
nature of
Partnership
2. Formation and
Duration of
Partnership
3. Liability of Partners
4. Relations Between
Partners to One
another
5. Partnership Property
6.Dissolution of
Partnership
13 Revision and Revision and consultation
consultation
14 Revision and Revision and consultation
Consultation
15 Final Exam

REFERENCE MATERIALS

Main reference supporting the course

• Lee Mei Pheng & Ivan Jeron Detta, Business Law, 2009, Oxford University Press Sdn Bhd.
ISBN 978 983 45050 3 5

Other additional reference

• Contracts Act 1950

• Sale of Goods Act 1957
• Partnership Act 1961

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