SECTION B: SCENARIO BASED QUESTIONS (14 MARKS)
USE THE IRAC METHOD TO ANSWER THE TWO QUESTIONS BELOW.
Use the following question to help you answer in a structured manner:
ISSUE - What is the issue in this case?
RULE - What are the rules and cases that are relevant this scenario? Explain these rules in your
own word
APPLY - Using the rules explained above, how do you apply them to the scenario given to you?
CONCLUDE - what is the conclusion or answer to the question that you state in ISSUE.
1. Zaki puts an ad in the newspaper stating that he wants to sell his motorcycle for RM 2,000. Amos
goes to Zaki's house and told him that he wants to buy the motorcycle. After looking at it, Amos
hands over to Zaki RM2,000 in cash, which Zaki puts in his pocket. However, while Amos is waiting
for Zaki to prepare some documents and give him the key to the motorcycle, Sarveen arrives at Zaki's
house and tells Zaki that he will give him RM3,000 for the motorcycle. Zaki hands Amos back his RM2,
000 and instead gives the key and documents to Sarveen. Amos is very upset and wish to sue Zaki,
but he wants to know whether a valid contract has been created between him and Zaki. Explain.
(7 marks)
2. Macho Man Store (MMS), a company retailing DIY tools and hardware issued a catalogue of items
they had for sale at their new branch. One item is a BOSCH Impact Drill set which is advertised at RM
175. Arman saw this catalogue and is determined to buy the drill set mentioned above. He went to
MMS, took a drill set from the display shelf, and went to the cash desk where he gave RM 175 for the
drill set. The sales assistant however told him that there was an error in the price printed on the
catalogue and the actual price is RM 475. Arman insisted that he is entitled to buy the drill set at RM
175 but the store refuses to sell to him. Based on the rules in contract law, explain whether Arman
could insist to buy the drill at RM 175.
(7
marks)