On 25 April, 2012, PETRONAS, Petroliam Nasional Berhad (Malaysian National Oil Company Inc.), wholly owned by The Government of Malaysia, has offered a scholarship to Mr. Hussein Ali to pursue his Bachelor of Engineering (Hons) degree in Chemical Engineering at Universiti Teknologi Petronas (UTP). The duration of the sponsorship is four (4) years, from 10 September 2012 until 9 September 2016. Among the terms and conditions of sponsorship include full sponsorship of tuition fees, accommodation, living expenses, book allowances, and to serve in any subsidiary companies of PETRONAS for five (5) years upon completion of study. Mr. Hussein Ali accepted the scholarship offer and signed the contract for scholarship as the recipient. His father Mr. Ali Mustaffa then signed in as the guarantor. [f there is a breach of contract, either the recipient as promisor OR the guarantor as surety shall pay back PETRONAS the total amount actually spent on Mr. Hussein Ali's four (4) years' sponsorship. He was 17 years I I months old when signing the contract. When Mr. Hussein Ali graduated on 7 September 2016, PETRONAS sent him notice through official letter requiring him to service his contract with Petronas Energy Resources, a subsidiary company of PETRONAS but he failed to report for work without any reason and notice. PETRONAS then sued Mr. Hussein Ali for breach of contract. But Mr. Hussein Ali argued that at the time of signing the contract, he was a minor and that the contract was void due to lack of capacity.

a. Is there any contract exists? Anlayze Mr. Hussein Ali's position from the elements of contract and advise him accordingly. Justify your answers with relevant case law where applicable. 14 mark

b. Outline precisely any 3 essential elements of creating a valid contract? 6 mark

Answer rating: 100% (QA)

a There is a contract that exists between PETRONAS and Mr Hussein ... View the full answer