Business law

Question1

What are the basic elements of a contract? Please describe.

Question 2

a) Michael, a New Zealand importer, had on 1.4.2011 contracted to buy 5,000 tonnes of rubber from Amin, who is a Malaysian, at the purchase price of RM500,000. However, Michael has just heard that the New Zealand Government had on 1.5.2011 made a law to prevent the import of any rubber. Michael had already on 1.4.2011 paid a deposit of RM50,000 to Amin, and had on 15.4.2011 received the first batch of 1,000 tonnes of rubber from Amin. Michael is facing a problem because it will be unlawful for him to continue the contract with Amin in respect of the sale and purchase of the rubber. Advise the parties as to their liability under the contract.

(b) Please describe the ways in which an offer may be revoked/terminated.

Question3

Jean is a 16 years old girl. She wants to help her mother to open a supermarket in Taman Pelangi, Johor Bahru. Please advise her as to what type of contracts she may enter into legally under the law of contract.

Question4

Mary wants to buy some groceries in Apple Hypermarket. She puts some canned food, sugar, flour and some eggs, fishes and vegetables into her shopping trolley. Under this situation, has a contract been made between Mary and Apple Hypermarket at this moment? Please give reasons for your answer.

Question5

Write short notes on the following terms and mention examples:

1-Express and implied contracts

2-Valid contract

3-Void contracts

4-Voidable contracts

5-Consideration

6-Capacity