Answer ALL questions. Each question carries 10 marks.

1. Explain the TWO (2) elements of an action in negligence which the plaintiff must prove in order to claim damages.

2. Describe the basic elements of a valid contract.

3. Discuss the remedies available to a buyer of goods when a seller is in breach of a sale of goods contract.

4. Distinguish between tort and contract. Provide examples for your explanation.

5. Describe the principle of limited liability in a limited liability partnership.

6. Describe the essential requirements of a company.

7. In relation to the law of contract, write short note on the following: (a) Coercion (5 marks) (b) Mistake (5 marks)

8. Customers opening current accounts and borrowers must have the capacity to contract or else the banker-customer contract is void. Explain what is meant by capacity to contract in context of this case.

9. Paul agreed to pay Mike RM8,000 if he would sail as sailor in a vessel from Penang to Auckland. This was a higher rate than normal for such a voyage. Mike died at sea before the completion of the voyage. Mikes widow attempted to recover a proportion of the agreed sum RM8,000. Advise whether Mikes widow will be able to recover the sum.

10. Apple appointed Mango to sell her boutique. Apple told Mango that she wished to sell it for RM250,000 because she thought it was the market price. Mango sold Apples boutique at RM300,000 to an eager buyer who wanted to invest in a boutique urgently to take advantage of the festival shopping coming soon. Mango did not disclose the actual selling price to Apple, but agreed with the buyer for a secret commission of RM50,000. Somehow, Apple found out what Mango had done.

Advise Apple.