law-final.docx - Question 1 Discuss the following separate and independent situations from the perspectives of contract law(a)An office building was

law-final.docx - Question 1 Discuss the following separate...

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Question 1 Discuss the following separate and independent situations from the perspectives of contract law: (a)An office building was leased at a price of RM3,000 per month “for as long as the lessee wishes”. Contract is an agreement that is enforceable by the law which stated in section 2(h) of the contract act. Certainty is one of the element in the contract. In Section 30 of Contract Act 1950, it mentioned that “Agreements, the definition of which is not certain, or capable of being made are void”. For example, let’s say that Amelia enter into an agreement that she agrees to rent a house from Alice without knowing what kind of house is being offered. In the end, 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 is granted which is “at RM35.00 per month for as long as he likes” the need for certainty doesn’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 the purchasing price can be held on the hire-purchase terms over a period of two years”. This contract was void because of uncertainty as none of the parties could say what hire-purchase terms were forecasted.(Marsh and Soulsby) An option to renew a lease “at such rental as may be agreed between two parties” was held void 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 shall buy all of its petrol from the garage “at a price to be agreed among the parties… from time to time” when the bus company bought a land from a garage. A later clause provided that any argument regarding the subject matter or content of the agreement shall be referred to arbitration. After three years the bus company duly bought its petrol and the land was conveyed, but then claimed that it no longer need to do so. It was held bound. By using a price 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 not specified properly in a proper time manner. Thus, the certainty which is one of the elements of the contract is not determined in this agreement. In conclusion, the agreement is void because there is absence of certain and clear period of time of the contract in the agreement. Since certainty does not present in this agreement, it is considered as void and cannot form into a contract. 1
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(b) Sofia offered to sell her old Mercedes to Barbie, for RM50,000. Barbie was interested but thought that the price was too high. She asked Sofia whether she would consider selling the car for RM30,000.
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