Reference no: EM13557725
QUESTION 1
a) "In simple language, a misrepresentation is a representation that is untrue. It is a false statement made by one party to the contract to the other, before, or at the time of contracting, on which that other party relied on in contracting."
Per Abdul Malik Ishak J. in Travelsight (M) Sdn Bhd &Anor v Atlas Corp Sdn Bhd [2003] 6 MLJ 658.
With reference to the Contracts Act 1950 and relevant cases, discuss the circumstances and elements of misrepresentations which cause a contract to be voidable.
b) On 4 March 2014, Ahmad, an antique collector, entered a contract for the purchase of an antique watch, which was described in good faith, by Farisham, the seller, as more than 100 years of age. Ahmad paid the deposit of RM10 000 out of the total price of RM50 000 and promised to pay the balance within one week. On 6 March 2014, while attending an auction for antiques, Ahmad met Yatt, who told him that she was the person who sold the antique watch which she inherited from her father, to Farisham. Yatt told Ahmad that the watch is not very old as her father bought the watch on the day that Malaysia got its independence, i.e. on 31 August 1957. Ahmad was very disappointed with what Yatt told him and immediately sent an e-mail to Farisham which stated that he intended to terminate the contract which he entered with Farisham on the ground that there was a misrepresentation of fact. Ahmad also wanted to claim back the RM 10 000 of deposit which he has already paid to Farisham.
Advise Farisham.
QUESTION 2
Raju and Kamala set up a consultancy firm under the name of Expert Consultancy in June 2000. The partnership agreement clearly stated that the partnership shall remain for a ten year period. In December 2010, Kamala took a personal loan amounting to RM100,000 from Bank Business but failed to pay three installments. Kamala later assigned her interest in the firm to Bank Business. Raju was not happy with the assignment and gave a notice to Kamala for dissolution of the firm. Raju decided that if Kamala refused to accept the notice, he would apply for dissolution by a court order.
Discuss:
a) The right of Kamala to assign her interest in Expert Consultancy to Bank Business.
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