Legal Framework for Managers

Topics: Contract, Breach of contract, Contract law Pages: 10 (2506 words) Published: November 5, 2012


1. Question 1 and AnswersPage 2
2. Question 2 and AnswersPage 2
3. Question 3 and AnswersPage 4
4. Question 4 and AnswersPage 6
5. Question 5 and AnswersPage 7
6. Question 6 and AnswersPage 12


State any rights in which the Employment Act 1955 gives exclusive protection to female employees.

1.1. ANSWER 1

As stipulated in Employment Act 1955:

a) Under Section 34(1), employers are not permitted to employ women to carry out industrial and agricultural work between 10.00pm to 5.00am without exemption from the Director General of Labour Department; and

b) Under Section 35, no female employee shall be employed in any underground working.


State whether the parties below are required by law of contract to fulfill their legal obligations in the following situations and explain your answer:-

a) Ronaldo wants to accept the offer made by Tom. Since Tom does not stipulate the mode of acceptance, Ronaldo decides not to take any action and presumes that Tom shall understand and accept his silence as an acceptance.

b) Aiman placed the following advertisement in Motor Trader magazine: “For sale- 1965 Mini Austin in good condition. A bargain at RM12,000”. Tom, who was interested in vintage cars, wrote a letter to Aiman on Monday offering to buy the car for RM10,000. Aiman wrote back saying, “ I’m afraid I cannot accept anything less than RM12,000. Let me know by Friday evening if you still wish to buy the car”. On receipt of the letter, Tom wrote back immediately saying :”RM12,000 seems a bit pricey, but I’ve always wanted to own a Mini Austin, so consider it a deal. I am a bit short of money this month. Would you be willing to accept RM6,000 immediately and the rest next month? If I hear no more from you I shall take it that we’ve got a deal and I will collect the car on Friday”. The letter was lost in the post and never arrived. Aiman having heard nothing from Tom, assumed that Tom was not interested in the car and agreed to sell it to Zul on Friday morning. Tom arrived at Aiman’s house to collect the car on Friday afternoon and saw Zul drive off in the car. Advise Tom whether there exist a contract for the sale of the car between him and Aiman.

2.1. ANSWERS 2

a) By law of contract (Proposal and Acceptance), neither Tom nor Ronaldo are required to fulfill their legal obligations since silence does not necessarily indicate there is acceptance and acceptance only becomes effective when it has been communicated. According to Section 3 of the Contracts Act 1950, acceptance must be made in the manner prescribed by the offer. In this case even Tom did not stipulate the mode of acceptance. However, according to section 4(1) of the Contracts Act 1950, the communication of the proposal (offer) is complete as it has come to the knowledge of the person to whom it is made which is Ronaldo.

b) In the case of Aiman (proposer) and Tom (acceptor) by law of contract (Contracts Act 1950) this case is classified as counter offer. The acceptance must be made in exactly the same terms as the proposal. There should not be any modification of the proposal. If an offer is modified, the modification will become a counter offer and not acceptance. It is concluded that there is no contract exist between Aiman and Tom even though Tom had communicated his acceptance to Aiman. By making a counter offer, Tom had rejected the original offer. Reference case is Hyde v. Wrench (1940) 3 bench 334.


Mr. Irfan, a sixteen year old boy, wants to know as to whether he can enter into commercial contracts. Advise him as to what types of contracts he may enter into legally.

3.1. ANSWER 3

In Irfan case, according to the law of contract, capacity to contract, in order to form a valid and binding contract, the parties must have the capacity and are competent to enter into...
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