Jimmy and Kevin are best friends. One day, Jimmy is asking Kevin to pay back the money that Jimmy loaned to Kevin a year ago. But, Kevin are unable to pay now and he suggests Jimmy to borrow from a licensed money lender, John. After Kevin helps to negotiate with John, John agrees to lend $1,200 to Jimmy with 5% interest to be paid in 2 months. After 2 months, Jimmy requests to extend one more week for him to pay back his loan. John the moneylender then contacted Jimmy again after a week, but Jimmy curse at John and asked John to get the money from Kevin because Kevin owed Jimmy $1500. When John the moneylender contacted Kevin to ask for the money, Kevin does not want to pay. John was very angry and he wants to sue Jimmy and Kevin for refusing to pay his money back.

 

Advise Jimmy, Kevin and John based on Contracts Act 1950 (Malaysia's Law) and relevant cases using IRAC methods. 

Answer rating: 100% (QA)

Issue Jimmy and Kevin are dearest companions At some point Jimmy is requesting that Kevin take care of the cash that Jimmy credited to Kevin a year prior In any case Kevin cant pay now and he recommen... View the full answer