Question 1Discuss the following separate and independent situations from the perspectives ofcontract law:(a)An office building was leased at a price of RM3,000 per month “for as long as the lesseewishes”. Contract is an agreement that is enforceable by the law which stated in section 2(h) of thecontract act. Certainty is one of the element in the contract. In Section 30 of Contract Act1950, it mentioned that “Agreements, the definition of which is not certain, or capable ofbeing made are void”. For example, let’s say that Amelia enter into an agreement that sheagrees to rent a house from Alice without knowing what kind of house is being offered. In theend, this agreement is considered as void due to the basis on uncertainty. In Karuppan Chetty v Suah Thian (1916), when the parties agreed upon the lease that isgranted which is “at RM35.00 per month for as long as he likes” the need for certaintydoesn’t met. Hence the contact between Karuppan Chetty and Suah Thian are said to be void.Besides that, in Scammell v Ouston agreed to purchase a van “provide that the balance of thepurchasing price can be held on the hire-purchase terms over a period of two years”. Thiscontract was void because of uncertainty as none of the parties could say what hire-purchaseterms were forecasted.(Marsh and Soulsby)An option to renew a lease “at such rental as may be agreed between two parties” was heldvoid as well in King’s Motor (Oxford) Ltd v Lax (1969).In Foley v Classique Coaches Ltd (1934),on the condition (inter alia) that the company shallbuy all of its petrol from the garage “at a price to be agreed among the parties… from time totime” when the bus company bought a land from a garage. A later clause provided that anyargument regarding the subject matter or content of the agreement shall be referred toarbitration. After three years the bus company duly bought its petrol and the land wasconveyed, but then claimed that it no longer need to do so. It was held bound. By using aprice that is reasonable, it could be settled under the arbitration clause. Based on the question above, the office building was leased at a price of RM3,000 per month“for as long as the lessee wishes”. The period of time for as long as the lessee wishes does notspecified properly in a proper time manner. Thus, the certainty which is one of the elementsof the contract is not determined in this agreement. In conclusion, the agreement is void because there is absence of certain and clear period oftime of the contract in the agreement. Since certainty does not present in this agreement, it isconsidered as void and cannot form into a contract. 1
(b) Sofia offered to sell her old Mercedes to Barbie, for RM50,000. Barbie was interestedbut thought that the price was too high. She asked Sofia whether she would considerselling the car for RM30,000.