INSTRUCTION:

Answer the question below. Your answer should be supported with relevant Articles / Sections from Statute Law/ Legislation and Case Law/Cases.

Question 1

Following lengthy negotiations for the acquisition of cable television rights to the World Cup 2018, Alice and Bruce sign the following document:

Contract between Alice & Bruce - (Broadcast Rights Contract)

This document records the completion of negotiations of the Contract between by which Alice and Bruce agree to execute a formal contract which gives effect to each of the terms set out below.

i.Alice agrees to acquire from Bruce, and Bruce agrees to grant, the exclusive right to exploit the license that Alice holds to broadcast the 2018 World Cup Tournament.

ii.Alice agrees to broadcast all events at the 2018 World Cup Tournament and to provide facilities sufficient to enable appropriate overseas telecasts.

iii.Alice agrees to pay a sum of RM 3 million on the signing of the formal contract.

iv.Such other terms as may be agreed between the parties, acting in good faith and in a spirit of co-operation appropriate to the event to which the Agreement relates. All such terms to be:

(a) necessary for the efficacy of the venture; and (b) of a kind normally found in contracts of this type.

Alice decides that the price that she need to pay is too high and refuses to comment on a draft of the formal contract prepared by Bruce's solicitors. But she still signs the contract. After that, she just pays RM 2 Million to Bruce.

Advise Bruce whether he has any contractual rights against Alice. (50 marks)