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Official Assigneemay grant a certificate of discharge, but 3 years must have lapsed and debts must be less than $500,000Creditorshave the right to raise an objection. Section 124(2) and 126 of the Bankruptcy ActAfter Discharge:Relieved from restrictions and any debts left payable proved in the bankruptcy except debts due to the government (unpaid fines, taxes)Instead of bankruptcy, enter voluntary arrangement (approval from creditors):Arrange with creditor to extend payment period or payment by installments, and both can benefitas creditor might be able to recover more.Beneficial for debtor – avoids bankruptcy and consequencesDebt Repayment Scheme for debts less than $100,000Bankrupting someone involves cost and time.Writ of seizureand saleInvolves the seizure and sale of the judgement debtor’s property pursuant to a court order. (Jewellery, shares, houses – except HBD flats). (Page 20)2
BIZLAW CHEAT SHEETDifference btw WSS and Bankruptcy is that for WSS all the money goes to the creditor who called for judgement, for Bankruptcy, the money is spilt among all the creditors.Garnishee order(Page 20)Court order to garnish the sum owed to the debtor to satisfy the judgement debt. Monies in bank accounts, rents accruing to landlord owed to him, but yet to be paid may be garnished. However, if the maybe not worth it if the debt is quite small.Appointment of receiverCollect the debtor’s income on behalf of the creditor. (Page 20)Obtaining legal advice (Page 21)ESSENTIALS OF A CONTRACTEssentials of Contract (page 23)This question deals with the essentials of a contract. In order for a contract to be enforceable by law, there must be four elements present. They are: Offer; Acceptance; Considerationand Intention to create legal relations. If any of the four elements are missing, there will not be a valid contract.Offer (page 24)Invitation to Treat (pg24)Unilateral Contracts (pg26)Termination of Offer (pg28)In Preston Corpn Sdn Bhd v Edward Leong (1982),an offer was defined as an intimation of willingness by an offeror to enter into a legally binding contract. Its terms either expressly or impliedly must indicate that it is to be binding on the offeror as soon as it has been accepted by theofferee. Determine whether it is an offer:a)Is it an Invitation to Treat? (Invitation to Treat)b)Has it been terminated? (Termination of Offer)An Invitation To Treat(ITT) is an offer to negotiate or an offer to receive offers. Unlike an offer, it is not an indication by the person making it that he is willing to be bound should the other party be interested in proceeding further. Instances of Invitation to TreatThe case of Pharmaceutical Society of Great Britain v Boots Cash Chemicals (1952) provides that the display of goods (pg25)is merely an ITT, and not an offer. It was the customer who made the offer when he went to the cash desk. The sale or contract was made when the cashier accepted the customer’s offer.