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SECTION A: TRUE 0R FALSE (5 Mark There are FIVE (5) questions in this section. Answer ALL questions by writing True or False. 'l. The basic elements of contract are offer, acceptance, invitation to treat, ( counteroffer, discharge and remedies. 2. In the law of contract, if the parties are still negotiating. the agreement between ( them has already formed. 3. An agent has a duty to use due care, skill and judgement in dealing with third ( parties in their principal's best interests. 4. A warranty is a stipulation collateral to the main purpose of the contract, the ( breach of which gives rise to a claim for damages but not to a right to reject the goods and treat the contract as repudiated. 5. An agency can be terminated by renunciation. ( SECTION B: MULTIPLE CHOICE QUESTIONS (10 Mark There are TEN (10) questions in this section. Answer ALL questions by circling the bl answer. 1. Offers may be terminated in any one of the following EXCEPT: A) by notice B) by invitation to treat C) by not fulfilling the condition D) by counteroffer from the offeree A valid offer is an expression of the desire to enter into a contract that is beneficial both parties involved. Conditions for valid offer must include the following EXCEPT: A) an offer must be clear B) an agreement must be posted C) an offer must be communicated D) acceptor must aware of the offer Salmah asked Rina to deliver to Penang a quantity of tomatoes from Cameron Highlar Rina was late in delivering the tomatoes as the lorry was trapped in a flood in Pahai Most of the tomatoes became unfit for human consumption before reaching Penang order to save what was left, Rina then sold the remaining tomatoes in Perak. Decide. A) Rina has the authority to sell the tomatoes as agent of necessity because she tried avoid loss to her principal 2