Bus. Law Tutorial Answer

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Bus.

Law Tutorial - Problem Solving Answer

QUESTION 1 (Seri v. Amu)

The issue: Seri refused to pay wages to Amu because according to her, the
clothes that Amu sewed did not suit her taste. Is their agreement void and can
Amu claim the wage.

The decision of court: For this case, the contract made by Seri and Amu will
be void. Amu will also never get any wage from Seri. This is because of the
agreement made by Seri is after receive the clothes with suit the taste then
Seri will pay the wages to Amu. Since the clothe now is not suit Seri taste,
therefore, there will be no any wage for Amu.

The fact: The words “taste” bring too common and do not much specific by all
individual.

The legal support: Ahmad Meah v. Nacodah Marecan (1890) Ky 583


Facts: NM said to AM: "Please build a house that suits me". AM then built a
house that he thought was suitable for NM. Upon completion, AM requested
payment of wages, but NM refused to pay because the house AM built did not
suit him.

Held: The agreement entered into between AM & NM cannot be enforced due
to the presence of the word "suitable" which has no clear meaning. Thus, the
NM proposal is not communicated to AM & AM cannot make a wage claim.

“Suitable” – the term is subjective; it differs from one person to another.


QUESTION 2 (Juna v. Odie)

The issue: After Odie agreed to the offer and the terms and conditions given,
Juna suddenly changed her mind and offered Cora to rent the same shop
building. Can their contract be terminated because Juna suddenly changed
her mind.

The fact: Juna “intends to lease” the shop, therefore, just offer TNC but not
confirmation between two parties.

The decision of court: The contract between Juna and Odie can be terminated
anytime because there wasn't have any contract have been acceptance.

The legal support: Lau Brothers & Co. v. China Pacific Navigation Co. Ltd.
(1965) 1 MLJ 1
Facts: Negotiations for the delivery of logs were conducted through a series of
telegrams and letters. Whilst still in the negotiating stage, the defendant
withdrew. Issue: Was there any binding contract between the two parties?

The court held: that the parties were still in a state of negotiation and no
agreement was formed. Therefore the Defendant were justified in
withdrawing.
QUESTION 3 (Reese v. Anne)

The issue: Are Reese and Anne bound by the contract.

The fact: The next day, Anne met with Reese and stated, “I agreed to sell it to
you at the price as offered yesterday.” The words yesterday already out from
the timeline given by the offeror to offeree.

The decision of court: Reese may choose to accept the offer by Anne or not to
do so, because there was no contract created as the price Reese made is out
out the time the offer given.

The legal support: Ramsgate Victoria Hotel Co. Ltd. v. Montefiore (1866)
LR1 Exch 109

The fact: Montefiore applied for shares on 8 June but he was not told until 23
November that his offer had been accepted & that the share had been alloted
to him & that the balance owing on the shares was now due. Montefiore
refused to pay & the company threatened to sue; allerging breach of contract.

The issue: was whether the offer lapsed through passage of time.

The court held: the offer to purchase shares had not been accepted within a
reasonable time & the offer had therefore lapsed. There was no contract
created.

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