LAW101

LAW101
Midterm Revision

Question 1 - MLS
• Explain any SIX (6) sources of law in Malaysia.

(30 marks)

Answer
Constitution
 Legislation
 Subsidiary legislation
 Case law
 Custom
 English law
 Islamic law


Question 2 - MLS
• In your opinion, which is the more important source of

law? Give reasons for your answer
(20 marks)

Answer
• Constitution is the most important source of law
• All of the most important laws can be found in the

constitution
• It is the most important source of law because it consist of those laws which are made by Parliament which is the highest law making body in Malaysia.
• The Constitution is part of written law which according to
Article 4(1) Federal Constitution is the supreme law of the country • Furthermore, there is extra protection given to the
Constitution. To make any changes to the constitution, a
2/3 majority is required in Parliament

Question 3 - MLS
• Explain the difference between the Constitution and

legislation.
(20 marks)

Answer
• Both are laws made by Parliament
• Constitution consist of the most important laws in the

country
• Legislation are normal laws made by Parliament
• A 2/3 majority in Parliament is required to change the constitution whereas a simple majority is required to make or amend a legislation

Question 4 - MLS
• What is subsidiary legislation?

(10 marks)

Answer
• Subsidiary legislations are laws which are made by

someone or somebody whom Parliament has given power to make such laws

Question 5 - MLS
• Why is subsidiary legislation important?

(20 marks)

Answer
• It is important because: • Legislation by Parliament and the State Legislatures is insufficient to provide laws required to govern everyday matters
• Subsidiary legislation deals with the details about which legislature has neither the time nor the technical knowledge to enact laws
• Legislature merely lays down the basic and main laws, leaving the details to persons or bodies to whom they delegate their legislative powers Question 1 – MLS II
• What is criminal law?

(10 marks)

Answer
• Criminal law concerns with offences against the state
• The purpose is to preserve order in the community by

punishing offenders & deterring others
• The main law is the Penal Code

Question 2 – MLS II
• Explain the differences between civil and criminal law.

(30 marks)

Answer
Concerns

Purpose of the action

Criminal Law

Civil Law

Offences against the

Disputes between

state

private individuals

To preserve order in the To remedy the wrong community by punishing which has been offenders & deterring

suffered

others
The parties

A prosecutor

A plaintiff sues a

prosecutes a defendant defendant

Question 3 – MLS II
• Explain any THREE (3) alternative methods of dispute

resolution.
(30 marks)

Answer
• There are about 3 alternative methods available to solve a

legal dispute, namely arbitration, mediation/conciliation and negotiation
• Arbitration is a method to solve a legal dispute where the parties must agree to allow an independent person
(arbitrator) to make a binding decision for them
• Mediation/conciliation is a process in which a neutral party informally brings together the parties to exchange their views in order to reach a settlement
• Negotiation is a process in which agreements are sought by offering and seeking compromise

Question 4 – MLS II
• Explain any FIVE (5) advantages of alternative methods

of dispute resolution.
(30 marks)

Answer
• Privacy - proceedings are private as opposed to litigation

•

•

•
•

proceedings where the final hearing is in an open court. Thus private & confidential matters are not revealed to members of the public; Expertise / Experience - generally the arbitrator will be selected for his skill and experience in the area disputed. This is not the case of open court;
Timing of hearing - the date of the hearing is fixed to suit the parties as opposed to court hearing dates which are fitted into the court lists and may not be convenient to the parties;
Costs - in theory the costs are less expensive than litigation although this is not necessarily always so;
Informality - the procedural rules are generally less cumbersome than in the courts;

Question 5 – MLS II
• What are the differences between mediation and

arbitration?
(20 marks)

Answer
• Arbitration
• Is a method to solve a legal dispute where the parties must agree to allow an independent person (arbitrator) to make a binding decision for them
• The decision (award) made by the arbitrator must be followed by both disputing parties
• Expensive option
• Mediation
• Is a process in which a neutral party informally brings together the

parties to exchange their views in order to reach a settlement
• The mediator will not be making any decisions. Instead he will be trying to convince both parties to settle their disputes
• Cheaper option

Question 1 – Proposal & Acceptance
• Explain any FIVE (5) elements of a valid contract.

(30 marks)

Answer
• Offer/Proposal
• Acceptance
• Consideration
• Capacity
• Intention to create legal relations
• Certainty
• Free consent
• Legality
• Formality

Question 2 – Proposal & Acceptance
• T advertised his speed-boat in a newspaper for RM4,000.

S wrote back offering to buy the speed-boat for RM3,500.
T replied by return of post stating that he would accept
RM3,750. Having received no reply from S, T wrote again saying he would accept his offer at RM3,500. Advise T.

Answer
• Issue
• Is there a contract between T and S?
• Law & application
• When T advertised his speed-boat in a newspaper for RM4,000, this is an invitation to treat
•
•
•
•
•
•
•
•
•

(Majunder v Attorney).
An invitation to treat is an invitation to people to make offers
When S wrote back offering to buy the speed-boat for RM3,500, this is an offer/proposal
Offer/proposal is defined in s2(a) CA 1950 as …
When T replied by return of post stating that he would accept RM3,750, this is not acceptance
Acceptance is defined in s2(b) CA 1950 as …
Acceptance must be absolute and unqualified (s7(a) CA 1950)
T’s acceptance is not absolute and is qualified
This is actually a counter offer (s6(c) CA 1950) and a counter offer will revoke the original offer
(Hyde v Wrench)
When T wrote again saying he would accept his offer at RM3,500, this is not acceptance but a new offer/proposal since the original one was revoked by his counter offer. This is a new offer

• Conclusion
• There is no contract here

Question 3 – Proposal & Acceptance
• Sony writes to Ron and offers to sell his trumpet for

RM800. One week later, Ron writes to Sony accepting the offer despite knowing that Sony had died in a tragic car accident. Explain whether a contract exists between
Sony and Ron.
(30 marks)

Answer
• Issue
• Is there a valid contract between Sony and Ron?
• Law and application
• When Sony wrote to Ron offering to sell his trumpet to him, this is an offer
• Offer is defined in s2(a) Contracts Act 1950 (CA 1950) as “…”
• When Ron wrote to Sony accepting his offer despite knowing that Sony has passed

away, this is not acceptance
• Acceptance is defined in s2(b) CA 1950 as “…”
• According to s6(d) CA 1950, if the offeree knows that the offeror is dead before he accepted the offer, there is no acceptance
• Thus, since Ron had knowledge of Sony’s death, Ron’s acceptance was not valid because Sony’s proposal was revoked by knowledge of Sony’s death (s6(d)
CA1950)
• Conclusion
• There is no contract between Sony and Ron

Question 4 – Proposal & Acceptance
• Pat lost her cat, Mimi. She advertised in the newspaper

offering a reward to any person who returns Mimi to her.
Range found Mimi and returned the cat to Pat but without knowledge of the reward. Will Range be entitled to the reward upon reading about it in the newspaper?
(30 marks)

Answer
• Identification of Issues
• Can Range claim the reward?
• Law and application
• When Pat put the advertisement in the newspaper, this was an offer/proposal
•
•
•
•
•
•

(Carlill’s case)
Define offer/proposal (s2(a) Contracts Act 1950 (CA 1950)) and acceptance (s2(b)
CA 1950))
On the facts, Range had no knowledge of the reward when he returned the cat
As such, he may not be entitled for the reward
S4(1) CA 1950 states that proposal is communicated when it is brought to the knowledge of the offeree
Thus, since Range had no knowledge of the reward when he returned the cat to Pat, the offer was not valid as far as he was concerned (s4(1) CA 1950)
As such, there is nothing for Range to accept and he is not entitled to the reward offered by Pat

• Concluding Advice
• Range cannot claim the reward

Question 5 – Proposal & Acceptance
• Dumm Computers sells all its products through the

Internet. On 31st of January 2010, it wrongly displayed the price of a 32 inch LCD monitor at RM150 on its website. The actual price of it is RM1500. On 1st
February 2010, Ahmad entered Dumm Computers website and purchased the monitor at RM150 which he paid online through his credit card. Once the transaction was completed, Dumm Computers realized its mistake and demanded that Ahmad pays the actual price of
RM1500 for the monitor before it delivers it to him. Advise
Ahmad.
(30 marks)

Answer
Identification of Issues
• Can Ahmad sue Dumm Computers for breach of contract? Explanation and application of the law
• Define invitation of treat
• Define offer - s.2(a) Contracts Act 1950
• Define acceptance – s.2(b) Contracts Act 1950
• Draw an analogy between display on a website and display at a shop window.
• Fisher v Bell – display at a shop window is an invitation of treat
• Offer was made by Ahmad which was accepted by Dumm Computers and as such there is a contract for the sale of the LCD monitor for RM150
• Thus, Dumm Computers cannot demand for the extra RM1350 for the LCD monitor
Concluding Advice
• Ahmad can sue Dumm Computers for breach of contract if Dumm Computers does not deliver the LCD monitor

Question 1 - Consideration
• Explain the THREE (3) types of consideration.

(20 marks)

Answer
CONSIDERATION MAY BE:
EXECUTORY

EXECUTED

PAST

PROMISES
EXCHANGED

OBLIGATIONS TO BE PERFORMED
LATER
ONE/BOTH PARTIES HAVE PERFORMED
THEIR OBLIGATIONS

ACT HAS TAKEN
PLACE

PROMISES
EXCHANGED

Question 2 - Consideration
• Explain whether there should be adequate consideration

for there to be a valid contract.
(30 marks)

Answer
• Under Malaysian law, the consideration need not be

adequate
• Explanation 2 to s26 CA 1950 provides that an agreement is not void merely because the consideration is inadequate • Illustration (f) to s26 CA 1950 shows the application of the rule: “A agrees to sell a horse worth $1000 for $10…The agreement is a contract notwithstanding the inadequacy for the consideration.”
• There is no remedy at law for someone who simply makes a poor bargain.

Question 3 - Consideration
• Discuss the importance of consideration in the formation

of a contract.
(30 marks)

Answer
• Consideration is defined in s2(d) Contracts Act 1950 as …
• It must exist in every contract
• It must have monetary value
• According to s26 CA 1950, an agreement made without

consideration is void
• However, there are three exceptions to this rule namely:
a) It is in writing, registered (if necessary) and for love & affection between 2 people of near relation
b) It is a promise to compensate for something done (Past
Consideration)
c) It is a promise in writing and signed to pay a debt barred by limitation law

Question 4 - Consideration
• Intan and Berlian were neighbours. Intan had to go

abroad for business arrangements. Before she left, she told Berlian, “Please look after my house.” After four weeks of Intan being away, Intan’s house caught fire and
Berlian could only save Intan’s wedding album. When
Intan returned home, she thanked Berlian for saving her wedding album which she treasured so much and promised Berlian that she would pay RM100 for what
Berlian had done. Now Intan refused to pay what she has promised. Advise Berlian.

Answer
• Issue
• Is Berlian entitled for the money?
• Law & application
• On the facts, Berlian saved Intan’s wedding album first, promise to
•
•
•
•

pay her for saving it was only made later
This is past consideration
Consideration is defined in s2(d) CA 1950 as …
According to s2(d) and s26(b) CA 1950, past consideration is valid
Thus, there is a contract here

• Conclusion
• Berlian is entitled for the money

Question 5 - Consideration
• Mr Ajay was a successful business man. One day, he

promises his eldest son, Suresh, that he wishes to transfer one of his bungalow to Suresh to show how much he loved him. Mr Ajay made his promise in writing and registered it. A few years later, when Suresh married
Salwath, Suresh requested from Mr Ajay the possession of the bungalow for him to start his matrimonial life.
However, Mr Ajay was reluctant to accept Salwath as his daughter-in-law and refused to give Suresh the bungalow.
Advise Suresh.

Answer
• Issue
• Is Suresh entitled to the house?
• Law and application
• On the facts, Suresh did not be provide any consideration for the house which his father gave him
• Define consideration (s2(d) Contracts Act 1950 (CA 1950))
• S26 CA 1950 – x consideration x contract
• However, there are three exceptions to s26 CA 1950 which are stated in s26(a), (b) and (c)
CA 1950
• The relevant one here is s26(a) CA 1950
• Thus, in order to ensure that there is a valid contract here, the 3 conditions which are stated in s26(a) CA 1950 must be fulfilled. They are:
• This transaction must be done in writing. On the facts, the transaction was made in writing
• This transaction must be registered if necessary. On the facts, it was
• This transaction must be for love and affection between 2 people of near relation. Since this

transaction is between father and son, this condition is fulfilled (ReTan Soh Sim)

• Conclusion
• Since s26(a) CA 1950 has been fulfilled, there is a contract here and Suresh is entitled for the house

GOOD LUCK!!!!