Official Assignee
may grant a certificate of discharge, but 3 years must have lapsed and debts
must be less than $500,000
Creditors
have the right to raise an objection.
Section 124(2) and 126 of the Bankruptcy Act
After 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 benefit
as creditor might be able to recover more.
Beneficial for debtor – avoids bankruptcy and consequences
Debt Repayment Scheme for debts less than $100,000
Bankrupting
someone involves cost and time.
Writ of seizure
and sale
Involves 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 SHEET
Difference 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 receiver
Collect the debtor’s income on behalf of the creditor.
(Page 20)
Obtaining legal advice
(Page 21)
ESSENTIALS OF A CONTRACT
Essentials 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; Consideration
and
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 the
offeree.
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 Treat
The 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.
