QUESTION 1

SCENARIO 1

A valid contract is an agreement, enforceable by law that contains all the

essential elements of a contract and is binding and enforceable on all parties. Contracts

are usually written, but it also may be spoken or implied. The five essential elements of a

contract are offer, acceptance, consideration, intention to create legal relation and

capacity. If any one of the essential elements is absent, the agreement will not be legally

minded. Valid contract is the key to make sure that it is a legally binding contract. With a

formal contract, all parties involved can know exactly what is expected of them, the

terms of the agreement, and any other information that is important to the exchange.

Besides, a valid contract is enforceable by courts and it will guarantee the rights of both

parties.

On 1st June 2013, Handy & Co has posted a letter to my client, FanCee Incorporation

offering to sell 30, 000 boxes of tinplates for RM100, 000. In this situation, Handy & Co is

classified as offeror since it is the party who made the offer and FanCee Incorporation is

the offeree since it is the party whom the offer is made. Valid offer has occurred here

since Handy & Co is clearly targeting and offering to sell its products to my customers. In

my assumption, Handy & Co has the intention that if the offer is accepted, it should give

rise to a binding contract between them.

Besides, this offer also is free from any category of mere offer which are mere

intention, mere statement and invitation to treat. The offer is complete when the letter

that contains the offer reached the knowledge of my client, FanCee Incorporation on 10 th

June 2013. In my assumption, in the offer letter that Handy & Co has posted to my client

is including the terms and conditions. The condition term stated is my client will get 30,

000 boxes of tinplates and needs to pay RM100, 000 within two months after the

contract has been signed.

Before accepting the offer, I have advised my customers to discuss and modify the

terms with Handy & Co about this term since FanCee Incorporation’s condition is

unstable recently and their cash inflow is decreasing. So, to pay the full amount of

RM100, 000 in two months is a bit impossible since FanCee Incorporation’s sales are

decreasing. I do not want to take any risk because if my client breach this condition term,

which is the fundamental of the agreement, the agreement can be cancelled and Handy

& Co can claim any damages or loss that they have suffered from my client.

For example is the Poussard v Spiers (1876) case study, Madame Poussard has

signed a contract to perform as an opera singer for three months. Poorly, she fall sick

five days before the opening night and was unable to perform the first four nights. She

has been replaced by Spiers. Madam Poussard is the party who breach the term since

she missed the opening night which was the most important performance as all the

critics and publicity would be based on this night.

Since my client has makes a counter offer, the initial offer by Handy & Co has comes

to end. Where an offer is accepted with some modification in the terms of the offer or

with some other condition not forming part of the offer, such qualified acceptance

amount to a counter offer. In Hyde v Wrench (1840) case study,

The defendant offered to sell a farm to the claimant for £1,000. The claimant in reply

offered £950 which the defendant refused. The claimant then sought to accept the

original offer of £1,000. The defendant refused to sell to the claimant and the claimant

brought an action for specific performance. There was no contract. Where a counter offer

is made, this destroys the original offer so that it is no longer open to the offeree to

accept.

In my humble point of view, on 11th June 2013, my client has met and discussed with

Handy & Co’s representative about this issue and Handy & Co has promised to make a

new offer with the new terms and conditions. After three days, on 14 th June 2013, Handy

& Co has sent a new offer with the new terms and conditions via email that FanCee

Incorporation needs to fulfil before acceptance can be made. Since this is the new offer,

the initial offer has been terminated.

In this new contract, the valid offer still occur since Handy & Co is offering to sell 30,

000 boxes of tinplates for RM100, 000 to FanCee Incorporation. The offer has been

completed when FanCee Incorporation has read the email about this new offer. The new

terms and condition has been modified and there are a few changes from the previous

one. In this new term, Handy & Co has given the chance to FanCee Incorporation to make

the full payment within six months but FanCee Incorporation needs to pay 2% of interest

at the end of final payment. Besides, Handy & Co also demands FanCee Incorporation to

make a consistent monthly payment to avoid any risk that they may suffer in case

FanCee Incorporation does not pay. In addition, Handy & Co has give one week duration

to FanCee Incorporation to reply the email of the offer will end.

I have advised my client to accept this new offer because I believed that FanCee

Incorporation can recover and stabilized their business condition in period given. In

addition, according to the Sales Manager of FanCee Incorporation, they confident that

they can achieve their sales target and able to pay Handy & Co the full payment with the

interest. So, on 15th June 2013, FanCee Incorporation has accepted the offer via email.

FanCee Incorporation has agreed to receive the tinplates that have been offered.

Unfortunately, the manager of Handy & Co does not check the email and being so

careless when he deleted the acceptance email from FanCee Incorporation. Even the

manager does not read the email, the acceptance is still complete at the moment

FanCee Incorporation sent the email to them. On 23rd June 2013, Handy & Co has call

FanCee Incorporation said that they are not receiving any feedback from FanCee

Incorporation yet and the offer has come to the end.

I have advised my client to show the proof where we have sent the email to the

Handy & Co but there is no reply from them. After a few investigation, Handy & Co has

admitted their careless and apologise us. Since the second offer also has been cancelled,

Handy & Co once again offer us with a new offer on 27th June 2013 but with the new

terms and conditions. FanCee Incorporation is given six months period to settle the

RM100, 000 payment but without the 2% interest because Handy & Co wants to make a

good relationship after the misunderstanding case.

This time, my client has went to Handy & Co’s place by their own to accept the offer

and signed the agreement to avoid any unwanted things happen again. Not only

considering two elements of valid contract, I also have advised my client to consider

about the other three elements which are the consideration, intention to create legal

relation and capacity. This is executed consideration when an act is performed in return

for a promise. The manager of Handy & Co also has the legal ability to sign the contract

and both of the parties have the intention to create the legal relation. Thus, all the

elements are existi and make the contract to be valid.

SCENARIO 2

In this scenario, Henry bought a house worth RM350, 000 via mortgage from Bank of

Bersih. He told his daughter, Ameena and his son-in-law, Ali, that if they are able to settle

the mortgage repayment to BB, the house will be handed over to them upon full

settlement. In this situation, this is only mere intention since it is a declaration by Henry

that he has the intention to do something that does not amount to an offer. For example

of mere intention to support this case, is the Farine v. Fickar case study. A father wrote

to his would be son-in-law that his daughter would have a share of what he left after the

death of his wife. It was held that the letter was a mere statement on intention and not

an offer.

However, in my opinion, Henry is already made a verbal contract. A verbal

contract is a promise that has been plainly spoken and has not been written down. In

addition, the five essential elements of valid contract have existed in this case. Firstly,

Henry has offer the house to his daughter and son-in-law since he is already old and want

them to continue to pay the mortgage repayment to BB. Then, Ameena and her husband,

Ali, have accepted the offer and began to pay the mortgage instalments until the

mortgage was paid off.

This is executory consideration because it is performed after an offer is made and

is an act to be performed in the future. In this case, Henry has offered his house to Amina

and Ali if they are able to pay off the mortgage loan. When Ameena and Ali have

succeeded to pay off the mortgage loan, they have given the consideration to Henry’s

promise to give them the house. If Henry refuses to pay, Ameena and Ali may take a

legal action against Henry.

In my assumption, Henry, Ameena and Ali have the intention to enter into a

legally binding agreement initially. When Henry offers the house to Ameena and Ali, he

already asked Ameena and Ali whether they are ready to accept the legal sequences of

having entered into an agreement. Ameena and Ali have agreed since they are confident

that they can pay off the mortgage loan and Henry also stated his readiness to give the

house to Ameena and Ali. The importance of this element is to create the contract as

enforceable, legal and binding. If there is no intention to create a legal relation, the

contract can be assumed as a not legal and the contract may not being enforceable

which not making contracting parties legally binding.

As a review, in Simpkins v Pays (1955), a grandmother, granddaughter and a lodger

entered into a weekly competition run by the Sunday Empire News. The coupon was sent

in the Grandmothers name each week and all three had agreed that if any of them won

they would share the winnings between them. The grandmother received £250 in prize

money and refused to share it with the other two. The lodger brought the action to claim

one third of the prize money. There was a binding contract even though the family

connection as the lodger was also party to the contract. This rebutted the presumption of

no intention to create legal relations.

  The last element is capacity. Capacity to contract means the legal competence of

a person to enter into a valid contract. Usually the capacity to contract refers to the

capacity to enter into a legal agreement and the competence to perform some act. If a

party does not have capacity, then the contract shall be unenforceable.

In this case, Henry, Ameena and Ali all are matured adults and have the legal ability

to enter this contract. However, if the situation shows that any of them are minor, under

drugs or lack mental capacity, they will not be capable to sign the contract. The

importance of legal capacity is the contracts do not bind people who do not have

capacity, because they cannot think rationally like normal individual.

When Ameena and Ali have paid off the mortgage loan, Henry refused to hand over

the house to them and he claimed that the promise was not made binding in any

agreement. In my point of view, Henry has lack of knowledge about contract law since he

does not know that contract can be made in two ways which are verbal or written. Even

they do not signed any agreement, their contract is still valid since it is fall under verbal

contract even does not been written down. When someone makes a promise about

something that they will do and actually they did not, it could be considered as a breach

of their oral contract.

The impact of verbal contract is burden of proof. If innocent party wants to sue for

breach contract, surely the party needs to prove that the contract existed in the first

place. The party needs a witness that overhears the agreement or any other evidence

that proof that the agreement is really exist. It is tough to convince judge based on your

verbal story only. The best way to prove that the verbal contract is exist is based on the

action of parties. Sometimes, written contracts cannot hold up. It depends on many

different things. Oral contracts can be sometimes as good as written contract if there is

witness to the verbal agreement.

In my assumption, Henry’s oldest son and daughter-in-law, Afiq and Aishah have

witnessed this verbal agreement before. Both of them are wise and have the legal ability

to be the witness of the agreement. So, Ameena and Ali have the concrete proof that the

contract is really exist. Besides, Ameena and Ali also still keep the messages that Henry

sent to them talking about this contract. In conclusion, Henry needs to give the house to

Ameena and Ali since both of them already accepted the offer and fulfil the condition,

which they already succeed to pay off the mortgage loan.

QUESTION 2

The contents of a contract are known as terms or clauses. An agreement will

generally consist of various terms. Even the simplest forms of contract will have terms.

The main terms generally being the price paid and the subject matter of the contract,

like the goods or services provided. It is not a requirement that terms are written in

simple contracts, although writing is required in certain types of contract. There are five

types of term which are express term, implied term, condition term, warranty term and

exclusion term.

I. Condition Term

A condition is a major term of the contract. It is the fundamental and root of the contract.

The effect of this term is if a condition is breached, the innocent party is entitled to end

the contract and claim damages. For example is the Poussard v Spiers (1876) case

study, Madame Poussard has signed a contract to perform as an opera singer for three

months. Poorly, she fall sick five days before the opening night and was unable to

perform the first four nights. She has been replaced by Spiers. Madam Poussard is the

party who breach the term since she missed the opening night which was the most

important performance as all the critics and publicity would be based on this night.

II. Warranty Term

Warranty is a minor term or supplementary of a contract which are not central to the

existence of the contract. The effect of this term is if the warranty is breached, the

innocent party may claim damages but cannot end the contract. For example in Bettini

v Gye (1876), Bettini has agreed to perform as an opera singer for three months. He fall

sick and missed six days of rehearsals. Bettini was in breach of this term and therefore

the employer was not entitled to end the contract. Missing the rehearsals did not go to

the root of the contract.

III. Exclusion Term

Exclusion is a term in a contract which intends to exclude one of the parties from the

liability or limit the person’s liability to specific listed conditions, circumstances or

situations. It can be inserted into a contract which aims to exclude or limit one’s liability

for breach of contract or negligence.

If there was a breach of the exclusion clause, it could have no application because the

innocent party would have the right to repudiate the whole of the contract due to the fact

that he had not received what he bargained for. However, the party may rely on such a

clause if it has been incorporated into the contract, it has been made clear and adheres

to the unfair contract terms act 1977 (UCTA) and the unfair terms an consumer contract

regulations.

For example is the Curtis V Chemical Cleaning CO (1951). The plaintiff took a

wedding dress to be cleaned by the defendants. She signed a piece of receipt in fact

contained a clause excluding liability "for any damage that arised". When the dress was

returned it was badly stained. It was held that the cleaners could not escape liability for

damage to the material of the dress by relying on the exemption clause because its

scope had been misrepresented by the defendant's assistant.

IV. Express Term

Express terms are terms that have been specifically mentioned and agreed by both

parties at the time the contract is made. They can either be oral or in writing. If this term

is not fulfilled, the innocent party may bring an action for breach of contract. In many

cases it will be clear from the express terms of the contract, which will expressly

condition one party’s performance on performance by the other.

For example, in Hong Kong Fir Shipping Co. v. Kawasaki Kisen Kaishi Ltd (1962), the

charterers of a ship sought to treat the contract as repudiated for failure to meet an

express condition that the ship “was in every way fitted for cargo service” even though

the ship had broken down on a number of occasions.1

If the language is unclear, the courts will ordinarily construe the term as a warranty

rather than a condition. Further, even if the language is clear, courts may construe

conditions to be warranties, and thereby keep the contract alive if interpreting the clause

as a condition was so unreasonable that it could not have reasonably been intended by

the parties.

V. Implied Terms

It is not a term that the parties have agreed on but are terms that are part of the

contract because they are implied from a number of sources like local custom and

practices, the courts (common law) and legislation.

Terms implied by custom

This term exist in contract because of local custom that exists and generally regarded as

being associated with such contracts.

For example, is Hutton v Warrren (1836) case, the claimant was a farmer who had a

tenancy on the defendant's fields. The claimant had planted corn and Barley on the fields

and worked the fields to ensure the crops would grow. Before the field was due to be

harvested the tenancy was terminated. The claimant then submitted a bill to the

1 http://books.google.com.my/books?id=OiulxT-j0DsC&pg=PA178&dq=effect+of+breach+the+express+term+in+law&hl=en&sa=X&ei=CZA8Uu24I4rWrQe22YCgCg&ved=0CEkQ6AEwBQ#v=onepage&q=effect%20of%20breach%20the%20express%20term%20in%20law&f=false

defendant for the work and cost of seed spent on the field as was customary in farming

tenancies. The defendant refused to pay stating there was nothing in the tenancy

agreement stating that such compensation was payable.2

The court implied a term into the tenancy providing for compensation for the work and

expenses undertaken in growing the crops. The term was implied as it was common

practice for farming tenancies to contain such a clause.

Terms implied by legislation

Terms are included and implied into contracts between parties by virtue of legislation.

For example, the law relating to sale of good in Malaysia is principally governed by the

Sale of Goods Act (SOGA) 1957. This contract is a contract whereby the seller transfers or

agrees to transfer the property in goods to the buyer for a price. Section 15 of the Sale of

Goods Act 1957 said that the importance of determining a contract for the sale of goods

is a sale by description. Section 15 provides where there is a contract for the sale of

goods by description there is an implied condition that the goods shall correspond with

the description and, if the sale is by sample as well as by description, it is not sufficient

that the bulk of the goods corresponds with the sample if the goods do not also

correspond with the description. 3

We can look further in case, Lau Yaw Seng v Cooperative Ceramica D’Imola. The

performance of the contract was in dispute. The quality of the goods shipped by the

defendant which allegedly were inferior to those the plaintiff saw as samples of goods on

display at a fair where he made the order. In such a case, it might well be a case where

the plaintiff was entitled to reject the goods and refuse to pay the defendant.

Terms implied by the Courts

The courts may determine that the parties in tended a term to be included in the

contract based on facts, even if it was not specifically expressed in the contract.

Terms may be implied at common law to give effect to legal duties that arise, as a matter

of policy, out of certain types of contractual relationship.

The classic case, in which an implied term was accepted by the Enlish Court of Appeal in

order to give the contract ‘business efficacy’, is the Moorcock case of 1889. A contract

had been made to unload a boat at a jetty. When the tide went out, the boat grounded

and was damaged. The contract was silent regarding the safety of the boat or the

requisite depth of water.4

2 http://www.e-lawresources.co.uk/Hutton-v-Warren.php3 http://ifolio.ukm.my/Scripts/tinymce/plugins/filemanager/files/2596/note_SOGA_description.pdf4 http://books.google.com.my/books?id=I1R4E0gkzNwC&pg=PA232&dq=moorcock+case+summary&hl=en&sa=X&ei=hpU-UuTEDMXqrAe-

The court held the jetty owners liable for breach of an implied term that the boat could

be left there safely, as without such an underlying assumption the whole purpose of the

contract would be meaningless

Sales and Purchase Agreement

Sales and purchase agreement is a legal contract that obligates a buyer to buy and a

seller to sell a product or services. It is the official document received after the mutual

acceptance on an offer stating the final sale price and all terms of the agreement. Sales

and Purchase Agreement are being used when buying a house, car, renewing the stocks

and many else.

When creating a purchase agreement, there are several important details that must be

listed to ensure that nothing is missed and no small pieces of information are

misplaced. These contracts help you avoid any later legal action and are smart to have,

particularly if working with a large and costly purchase.

Among five terms stated above, there are several terms that have been included in the

sales and purchase agreement. For example below is the agreement for the sale of a

used motor vehicle between Akramin Bin Malek, who is the seller and Ah Long, who is the

buyer. Akramin is selling his used car to Ah Long and there are several terms and

conditions that both of them need to agree.

Refer to the first clause, which stated:

“The Seller hereby sells to the Purchaser who hereby purchases upon the terms and

conditions hereinafter set forth the motor vehicle described in the following schedule and

hereinafter referred to as “the Vehicle”

This is a condition term, which is the fundamental of the agreement. This agreement is

all about the sales and purchase of the used car by Akramin Bin Malek to Ah Long. So,

this term is the essential of the agreement, which means, any of them breach this term,

the innocent party can end the contract and claim for any loss. For example, Akramin

and Ah Long have signed this agreement and suddenly Akramin change his mind not to

sell this car to Ah Long. Poorly, Ah Long has sold his old car in order to buy Akramin’s car.

Thus, Ah Long can end this contract and claim any loss that he has suffered like the loss

of her time, energy and money.

Next, let’s refer to the second term,

“The price payable by the Purchaser to the Seller for the Vehicle is the sum of RM98, 000

payable at to a deposit of RM10, 000 upon the signing of this agreement and as to the

balance of the purchase price by RM88, 000 monthly installments of RM1, 000 each,

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payable on or before the first day of each and every month, commencing on the 22th

September 2013. The payment can be made by cash or cheque.”

This clause is a warranty term, which is a supplementary term for this agreement. If any

party breach this term, the innocent party may claim damages but cannot end the

contract. For example, Ah Long has delayed his monthly instalment to Akramin for two

months. So, Akramin can claim the money but he cannot end the contract.

The seventh clause has stated,

“The Purchaser hereby acknowledges that the Vehicle is second hand, that he has

inspected it and has satisfied himself that it is in good order and condition.”

This is express term because this term can be understood clearly and easily. If this term

is not fulfilled, the innocent party may bring an action for breach of contract.

In the eight clause,

“The Seller shall sign such forms and deliver to the Purchaser such documents as may be

necessary to enable the Purchaser to register the Vehicle in his name.”

This is implied term under legislation. Akramin needs to sign some documents to Ah Long

to let Ah Long to register the vehicle in his name. This is because, he has agreed to sell

the car to Ah Long. So, he needs to change the name in the official grant with Ah Long’s

name, who is the new owner of the car.

SAMPLE OF SALE AND PURCHASE AGREEMENT

Agreement for the sale of a used motor vehicle

Entered into between:

Akramin Bin Malek

of

No. 54, Taman Aman, 98099 Kuala Lumpur,

(Hereinafter caller “the seller”)

and

Ah Long

of

No. 909, Perumahan Permai Indah,

88888 Petaling Jaya,

(Hereinafter caller “the purchaser”)

WHEREBY IT IS AGREED AS FOLLOWS:

1. Sale and purchase

The Seller hereby sells to the Purchaser who hereby purchases upon the terms and conditions hereinafter set forth the motor vehicle described in the following schedule and hereinafter referred to as “the Vehicle”

SCHEDULE

Year of manufacture

2007

Color Silver

Type BMW 3 Series

Registration number

PJL 6927

Particulars of all accessories included

Spare wheels, Tools, Radio, Air Conditioning Unit, Key and Service Book

2. Price and manner of payment

The price payable by the Purchaser to the Seller for the Vehicle is the sum of RM98, 000 payable at to a deposit of RM10, 000 upon the signing of this agreement and as to the balance of the purchase price by RM88, 000 monthly installments of RM1, 000 each, payable on or before the first day of each and every month, commencing on the 22th September 2013. The payment can be made by cash or cheque.

3. Place where vehicle to be kept

The Purchaser shall inform the Seller in writing of the address at which the Vehicle is to be kept and shall not, while any portion of the purchase price remains unpaid, remove the Vehicle

outside the jurisdiction of the magistrate’s court for the Malaysia country without the written consent of the Seller, which consent shall not be unreasonably withheld.

4. Insurance

The Purchaser shall at his own expense because the Vehicle to be comprehensively insured with an insurance company approved by the Seller for at least an amount equal to the purchase price and shall notify the said insurance company of the Seller’s interest in the Vehicle.

5. Risk

The risk in the Vehicle shall forthwith pass to the Purchaser who shall remain to pay the full balance of the purchase price despite any damage to or depreciation, loss or destruction of the Vehicle from ever because arising.

6. Restriction of purchaser’s rights

The Purchaser shall not sell, cede, assign, transfer of pledge the Vehicle or allow it to become subject to any lien of whatsoever nature or deliver possession thereof to any other person while any portion of the purchase price remains unpaid.

7. Inspection

The Purchaser hereby acknowledge that the Vehicle is second hand, that he has inspected it and has satisfied himself that it is in good order and condition.

8. Registration

The Seller shall sign such forms and deliver to the Purchaser such documents as may be necessary to enable the Purchaser to register the Vehicle in his name.

9. Seller’s rights on purchaser’s default

Should the Purchaser fail to pay any instalment punctually on due date or commit a breach of any of the provisions of this agreement, the Seller shall be entitled to claim payment of the full outstanding balance of the purchase price by action in the magistrate’s court for the Kuala Lumpur which the parties hereto agree shall have jurisdiction notwithstanding the amount involved.

10. Costs

The costs of drawing this agreement shall be borne by the parties hereto in equal shares.

SIGNED at No. 54, Taman Aman, 98099 Kuala Lumpur on this 20th September 2013.

_________________________________________

Signature of Witness.

_________________________________________

Signature of seller,

Akramin Bin Malek

Signature of Witness

_________________________________________

Signature of purchaser,

Ah Long.5

Scholarship Agreement

A scholarship is a financial support based on academic achievement or other criteria that

may include financial need for a student to further their education. The donor of the

scholarship sets the criteria for recipient selection, which usually reflect the values and

purposes of the donor or founder of the award. Scholarship money is not required to be

repaid. The donor specifically intends money be spent to pay the costs of study, training,

or research.

Proceeds of the scholarship offset the cost of the student's education for an upcoming or

current academic year, depending on when the student receives the funds.  Recipients

5 https://www.google.com.my/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&ved=0CEMQFjAE&url=http%3A%2F%2Fwww.lipco.co.za%2FDocuments%2FSale_of_used_vehicle.doc&ei=PGk-UsnIGMuTrge-_4HwCg&usg=AFQjCNFgQewRycyfzPXz73rrhasGAw98Ew&sig2=dGzKb5WkFrfIemyVAjeQ2g&bvm=bv.52434380,d.bmk

may be required to work for a particular employer for a specified period of time or to

work in rural or remote areas. Otherwise they may be required to repay the value of the

support they received from the scholarship. This is particularly the case with education

and nursing scholarships for people prepared to work in rural and remote areas.

Based from the sample of scholarship agreement, Media Prima has offered a scholarship

to Ali Bin Said. The condition term or fundamental of this agreement is Media Prima

offering a scholarship to Ali Bin Said to enrol and complete the Bachelor in Computer

Forensic (Hosc) until Ali finish his study in 2 October 2016. If Media Prima stop giving the

scholarship less than the duration stated, Ali can claim any loss and entitled to end the

contract.

According to the sixth clause,

“I   commit   to   share   what   I   will   learn   from   this   scholarship   to   Media Prima

and work there for at least a year to apply what I have learned.”

This is a warranty term which is the supplementary of this agreement. This is because, if

Ali breach this term, which he does not work with Media Prima after he finished his study,

Media Prima cannot end the contract but can claim for their loss. Media Prima can

demand Ali to repay his scholarship.

Based from the fifth term,

“I will represent Media Prima and CODE-NGO with integrity. “

This is the example of express term. Usually, scholarship agreement is simple because

the element of a valid contract is incomplete, which the minor is allowed to sign the

agreement. A supporter or donor gives the financial aid and just want the students to

perform in their study and give some benefit to them later. The agreement is simple

since this is less risky.

SAMPLE OF SCHOLARSHIP AGREEMENT

I, Ali bin Said, of legal age and a resident of No 895, Taman Desa Melati, 09000 Kulim, Kedah understand that an educational scholarship has been awarded to me so that I may enrol in and complete the Bachelor in Computer Forensic (Hosc).

The amount of this scholarship is RM10, 000 which is 40 % of the total fee for the program.

Accepting this scholarship means that I agree to the following terms:

• I will finish the program in 2 October 2016.

• That Media Prima shall provide me with regular salaries, benefits or allowances beyond the amount above during the duration of my scholarship.

•All outputs expected of me by Media Prime will be turned in on time and will be satisfactory as far as legibility and content.

•The amount of the scholarship indicated above shall only be used for tuition and other matriculation fees. All other costs associated with the course are mine, such as books, equipment, testing fees, travel expenses and allowances. My counterpart contribution to pursuing the prescribed course shall not be less than RM500 or 5% of the amount of scholarship grant.

• I will represent Media Prima and CODE-NGO with integrity.

• I   commit   to   share   what   I   will   learn   from   this   scholarship   to   Media Prima and work there for at least a year to apply what I have learned.

•I further understand that if I do not abide by the above stated terms, that I may be dismissed from the scholarship program. At the time of dismissal, I will become responsible for repaying the scholarship amount used up to that point. Arrangements will be made with Media Prima to repay this money. If monies are not repaid, I allow the Media Prima and CODE-NGO to seek reimbursement through legal avenues.

•By taking a personal inventory of my circumstances, I am able to make the commitment needed to finish the scholarship program. I understand that the amount of time and effort needed to graduate.

 

•By signing this contract, I am agreeing that it is a fair and binding agreement. I understand and agree to all terms of the contract and will work to adhere to them.6

Ali Bin Said

Signature over Printed Name 

Of Scholar

Date: __________________________________

Dato’ Amrin Awaluddin

Signature over Printed Name 

Of Media Prima

Date: __________________________________

Tenancy Agreement

Before a tenant moves in, the landlord and tenant need to complete a tenancy

agreement, which sets out the key things the landlord and tenant agree to do. It lets the

tenant in a property as long as tenant pay rent and follows the rules. It also sets out the

legal terms and conditions of the tenancy. Both of the tenant and landlord have

certain rights and responsibilities, whether or not you have a tenancy agreement. A

tenancy can either be:

fixed-term (running for a set period of time)

periodic (running on a week-by-week or month-by-month basis)

6http://code-ngo.org/home/images/stories/pdf/AnnexC_Sample_Scholarship_Contract.pdf

From the sample of tenancy agreement above, the agreement is made between Fadzlyna

Taib, as the Landlord and Hanan Inani, as the Tenant.

The first clause, which stated:

“The Landlord hereby agrees to let and the Tenant agrees to rent the 1A, Nice Court,

Taman Universal 53100 Kuala Lumpur, together with all the fittings, fixtures and

furniture therein if any, described in the inventory attached therein upon the terms and

conditions stated in the tenancy.”

This is a condition term, which is a major term of the contract. It is the fundamental and

root of the contract. The effect of this term is if a condition is breached, the innocent

party is entitled to end the contract and claim damages. For example, Fadzlyna Taib as

the Landlord has agreed to rent the 1A, Nice Court, Taman Universal, 53100 Kuala

Lumpur to Hanan Inani. If Fadzlyna changes the house and give another house to Hanan

Inani to rent, it clearly shows that Fadzlyna has breached this agreement. Hanan Inani,

as the innocent party, can entitle to end the contract and claim damages that she has

suffered.

Next, is the second clause,

“The tenancy shall be for a term of two (2) years commencing on the 1st August 2013

and ending on 1st August 2015.”

This is the warranty term, which is a minor term or supplementary of a contract which

are not central to the existence of the contract. The effect of this term is if the warranty

is breached, the innocent party may claim damages but cannot end the contract. For

example, if Hanan Inani, as the tenancy only rent the premise for one year and not two

years, Fadzlyna as the innocent party, can claim the loss that she suffered but cannot

end the contract. Fadzlyna may ask Hanan Inani to keep paying the rent until the

contract is end or until a new tenancy appear.

According to the fourth clause,

“Not to keep any hazardous or dangerous goods or substances in the house.”

This is the express term, which this term can be easily and clearly understood. For

example, if Hanan Inani still keeps dangerous goods in the house, Fadzlyna may bring an

action for breach of contract.

SAMPLE OF TENANCY AGREEMENT This tenancy agreement is made on 1st August 2013

Between

Fadzlyna Taib NRIC: 931108-06-5742

123, Jalan ABC, 50300 Kuala Lumpur

And

Hanan Inani NRIC: 930723-14-6216

456, Taman Selangor, 48000 Rawang

WHEREBY IT IS agreed as follows

• The Landlord hereby agrees to let and the Tenant agrees to rent the 1A, Nice Court, Taman Universal 53100 Kuala Lumpur, together with all the fittings, fixtures and furniture therein if any, described in the inventory attached therein upon the terms and conditions stated in the tenancy.

• The tenancy shall be for a term of two (2) years commencing on the 1st August 2013 and ending on 1st August 2015.

• The rent shall be in Ringgit Malaysia One Thousand Only (RM1, 000) per month payable in advance on the first week of each and every month.

•The Tenant agrees with the Landlord as follows:

- To pay the Landlord a rental deposit of Ringgit Malaysia Two Thousand Only (RM2, 000) and a utility deposit of Ringgit Malaysia One Thousand Only (RM1, 000) upon signing of this Tenancy Agreement the receipt of which the Landlord hereby acknowledges which shall be refunded without interest to the Tenant at the expiration of the term hereby created or earlier lawful termination of this agreement PROVIDED THAT the Landlord shall be entitled to:

o Deduct whatever charges costs and fees payable by the Tenant under this Agreement from the deposit if the said charge costs and fees are outstanding at the expiration of the term hereby created and the balance of the deposit shall be paid to the Tenant

when the keys to the premises are handed over to the Landlord.

o Forfeit the deposit if the Tenant commits a breach of any the terms and conditions of this Tenancy.

- To duty and punctually pay the monthly rental of Ringgit Malaysia One Thousand Only (RM1, 000) on the first week of each calendar month without any deduction whatsoever.

- To keep and yield up at the end or sooner termination of the term the Premises in good and tenantable condition and repair excepting depreciation from fair wear and tear weather and natural causes without neglect of the Tenant.

- To duly and punctually pay all charges for electricity, water and telephone payable in respect of the Premises.

- Not to keep any hazardous or dangerous goods or substances in the house.

- Not to use the Premises for any illegal unlawful or immoral purposes.

• The Landlord agrees with the Tenant as follows:

- To duly and punctually pay all existing maintenance fees quit rents affecting the Premises.

- To keep and maintain in good repair the main structure, walls, floors, ceiling, windows and doors of the Premises and shall be responsible for repairing any damage (not cause by the Tenant or the servants of the Tenant) or defect to the structure of foundation of the Premises, but excluding the replacement of light bulbs, PROVIDED that if such damage is caused by the Tenant or agents of the Tenant, the Tenant shall be liable to make good the damage at its own cost.

- That the Tenant paying the rent and performing and observing the stipulations and provisions herein contained shall quietly occupy and enjoy the Premises during the tenancy without any interruption by the Landlord or

any person rightfully claiming under or in trust for them.

•AND IT IS HEREBY MUTUALLY AGREED as follows:

- That the Tenant shall have the right at the expiration of the term hereby created to remove all furniture and fittings belonging to the Tenant PROVIDED that no damages is done to the Premises when removing them.

- The Tenant shall have the option to renew the tenancy of the Premises for further term of one year upon the same terms and conditions, covenants and stipulations herein contained PROVIDED THAT:

o Notice in writing by the Tenant to exercise the option to renew is given three months before the expiration of the tenancy.

IN WITNESS WHEREOF the parties have hereunto set their hands the day and the year first written.

Name:Azrin Raihan Binti Othman

NRIC: 931119-07—5532

Name: Fadzlyna Taib

NRIC: 931108-06-5742

Telephone: 017-9160018

Address: 123, Jalan ABC, 50300 KL.

SIGNED by the above named Tenant in the presence of

_________________________________________Name: Maizatul Erina Binti Bustaman

NRIC: 930821-14-8978

_________________________________________Name: Hanan Inani

NRIC: 930723-14-6216

Telephone: 017-2892124

Address: 56, Taman Selangor, 48000 Rawang.7

Service Agreement

Service agreement is an agreement between two persons or businesses whereby

a contractor supplies time, effort and expertise instead of a good. There are various

types of service agreements. For instance, General Service Agreement (an agreement

between a contractor and a property or a business owner to provide services like

gardening and repair works), Consultant Services Agreement (an agreement between a

consultant and a client that identifies the terms and conditions related to the type of

consulting services that the consultant will provide), Artist Services Agreement (an

agreement between a business owner, or client, and an individual to perform

bookkeeping or accounting services), and Child Care Services Agreement (an agreement

between a contractor/child care provider and an individual to provide child care

services).

7 http://www.geocities.ws/propertymalaysia/tenancy_agreement.html

Based from the below service agreement, it is the agreement for Cleaning Services

between Zaiton Binti Idris and Cuci-Cuci Cleaning Services.

The third clause is,

“Services to be performed by Contractor include the following: vacuuming of carpets,

dusting, and polishing of furniture; cleaning of wood floors, kitchen appliances, bath tubs

and shower stalls, toilets, sinks and all sink fixtures; in addition removal of trash from the

interior trash containers and brought to the outdoor Dumpster.”

This is the condition term which the root of this agreement. This is the main term why

this agreement is being made. If Cuci-Cuci Cleaning Services breaches this term and only

do a part of the services mentioned in the term, Zaiton is entitled to end the contract and

claim any damages or loss that she has suffer like money.

According to the second clause,

“Client will pay Contractor RM450 on the first day of each month for services to be

performed during the rest of the month.”

This is a warranty term. This is because if Zaiton does not pay the Contractor RM450 on

the first day of each month, Cuci-Cuci Cleaning Services can claim the loss but they

cannot end the contract. They may ask Zaiton to pay for extra charges for the lateness.

Refer to the last clause, which stated,

“Contractor will perform all services required under this agreement, except when

prevented by strike, lockout, act of God, accident or other circumstances beyond its

control.”

This is exclusion term. Exclusion is a term in a contract which intends to exclude one of

the parties from the liability or limit the person’s liability to specific listed conditions,

circumstances or situations. It can be inserted into a contract which aims to exclude or

limit one’s liability for breach of contract or negligence. For example, Zaiton’s house is

accidentally on fire, so, Cuci-Cuci Cleaning Services is unable to clean up the house and

Zaiton cannot claim anything from them. If there was a breach of the exclusion clause, it

could have no application because the innocent party would have the right to repudiate

the whole of the contract due to the fact that he had not received what he bargained for.

SAMPLE OF SERVICE AGREEMENT

Cleaning Services Contract

This agreement for Cleaning Services between Zaiton Binti Idris (hereafter referred to as “Client”) and Cuci-Cuci Cleaning Services (hereafter referred to as “Contractor”) is made and entered into upon the following date: 28 July 2013.

The lawn stated in this agreement may be found at the address below:

No 23, Taman Jaya, 23453 Kuala Selangor, Selangor Darul Ehsan.

The above mentioned parties hereby agree to the following terms:

1. Client will give Contractor access to the inside of the house during regular business hours and any additional mutually agreed upon times.

2. Client will pay Contractor RM450 on the first day of each month for services to be performed during the rest of the month.

3. Services to be performed by Contractor include the following: vacuuming of carpets, dusting, and polishing of furniture; cleaning of wood floors, kitchen appliances, bath tubs and shower stalls, toilets, sinks and all sink fixtures; in addition removal of trash from the interior trash containers and brought to the outdoor Dumpster.

4. Contractor will begin performing Cleaning Services on 1 August 2013. Thereafter, Cleaning Services shall be performed on a mutually agreed upon schedule.

5. Either party may terminate this contract with written notice. Any payment for above mentioned services owed by the Client shall be due and payable at the time the agreement is terminated.

6. Contractor will perform all services required under this agreement, except when prevented by strike, lockout, act of God, accident or other circumstances beyond its control.

In witness to their agreement to these terms, the Client and Contactor sign their signatures below:

Signature of the Client,

_________________________________________Name: Zaiton Binti IdrisNRIC: 630101-06-8767

Signature of the Contractor

Othman Bin Mohamood,

Manager Director of Cuci-Cuci Services