Name Candidate: ..................................................Candidates/No: ................

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Answer ALL the questions. 1. Which of the following is enforceable by law? A. Siti gives her house which is worth RM1 million to her daughter, Liz. B. Siti informs her husband she wishes to give her house worth RM1 million to her daughter, Liz. C. Siti, because of her love and affection for her daughter, Liz, puts in writing and registers her agreement to give her house worth RM1million to her daughter, Liz. D. All of above 2. Agreement made with consideration is: A. Contract. B. Legal. C. Void. D. None of the above. 3. A uses undue influence to make B sells his house to him The contract is: A. B. C. D. Illegal. Legal. Void. Voidable.

4. Which of the following is not a contract? A. A offers to sell his car to B for $10,000. The offer is accepted by B. B. A offers to sell his car to B for $20,000 and B pays $200 to A who accepts the payment. C. A offers to sell his car to B for $50,000 and B pays $5.00 together with a voucher for A to travel to Australia and is accepted by A. D. None of the above. 5. Which of the following is a contract? A. A, a primary school student, makes an agreement with a car dealer to buy a car. B. A, a mentally disturbed person, is asked by his doctor to sell his house to him. C. A bought a necklace which B told him was made of gold for RM10,000 when it is not gold. D. A, a foreign student, makes an agreement with a car dealer to buy a car worth $1M. 6. A, an engineer, orders for a machine. The manufacturer fails to supply the machine in accordance with the main specification for the machine. What remedy is available to the engineer? A. B. C. D. Damages. Specific performance. Injunction Repudation and damages.

7. The concept of privity of contract means: A. B. C. D. Everyone can sue under the contract. Everyone has a right to sue. Parties to the contract only can sue. No one can sue.

8. Which of the general rules is true of a social and domestic contract? A. B. C. D. 9. Court presumes parties have no intention to create legal relation. Court takes into consideration parties intention to create legal relation. Court presumes parties have intention to create legal relation. Court considers parties intention to create legal relation is irrelevant.

A, enters into a contract with B, a manufacturer, whereby B is to supply 10,000 litres of water to be packed in plastic bottles with each bottle to contain 5 litres of water and with As logo printed on them. B supplies the water in 4 litres plastic bottles without As logo printed on them. What action can be taken by A against B? A. A can rescind the contract because B has breached the condition of the contract. B. A can claim damages because B has breached the condition of the contract. C. A can repudiate the contract and claim damages because B has breached the condition of the contract. D. A can rescind the contract because B has breached the warranty under the contract.

10. A, on 23 August, through telephone, makes an offer to B to sell his house. B responds that he will reply on 25 August. B, on 24 August, sends a letter to say that he agrees to buy As house and the letter is received by B on 30 August. On 29 August B has sold his house to C. What action can B take against A? A. B cannot take action against A because his letter is received by A late. B. B cannot take action against A because A does not receive Bs reply on 25 August. C. B can claim damages against A because he has already sent his reply to buy As house on 24 August. D. None of the above.

11. A rents a house from B. In the agreement it is agreed that A will rent the house for $300 per month for as long as A wants. The agreement that is made between them is: A. B. C. D. Valid. Legal. Void. Illegal.

12. In the making a contract which of the following is not correct: A. B. C. D. There must be a consensus ad idem. There must be two parties to the contract. Must have consideration. The person in breach of the contract can be jailed.

13. A notice that is contained in an agreement or is made after the conclusion of an agreement to exclude the liability of the offeree from the offeror is known as: A. B. C. D. Condition clause. Warranty clause. Exemption clause. None of the above.

14. The principle that an advertisement is an offer and not an invitation to treat was decided in the case: A. B. C. D. Partridge v Crittenden [1968] 2 All ER 731. Carlill v Carbolic Smoke Ball & Co [1893] 1 QB 256. Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB 394. Coelho v Public Services Commission [1964] MLJ 12

15.The principle that the display of goods on the shelf in the shop is an invitation to treat and not an offer was decided in the case: A. B. C. D. Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] 1 QB 394. Abdul Rashid Abdul Majid v Island Golf Properties Sdn Bhd [1989] 3 MLJ 376. Preston Corp Sdn Bhd v Edward Leong & Ors [1982] 2 MLJ 22. None of the above.

16. Describe briefly three elements of a contract: ..

17. Describe briefly three ways in which an offer can be revoked. ..

18. Describe briefly three ways by which an innocent party can claim against the party in breach of a contract. .

19. Describe briefly three factors under which a person can be said not to have entered into into a contract without his free consent. ..

20. An agreement in which the terms are uncertain is: ..

21. Ali writes to Chong to sell his car for RM10,000. Ali is known as: . 22. In order to convert an offer into a contract the acceptance must be: . 23. What is a postal rule? 24. A sells his horse to B for RM10,000. A knows that his horse is unsound. He says nothing about it. What wrong has A done? .. 25. A wants to sell his car to B for RM10,000. A knows that his car had an accident before. B asks A whether the car is accident free. A remains silent. What wrong has A done? .. 26. What is difference between a void contract and a voidable contract? .. 27. Ali writes to Chong to ask about the model of his car? What is Ali doing? .. 28. Chong replies that the model of his car is Toyota Camry. What is Chongs reply to Ali known as? .. 29. Ali writes to Chong to accept his offer to sell his car for $10,000. When is the acceptance effective? . 30. Peter writes to Chong to inquire if he could supply him 20 tables design T12 and, if so, at what price. What Peter has done can be said to be: ..