Question

1. A agrees to pick and pack cherries for B for RM15 per hour at Cherrytree Farms which also allows customers to pick their own cherries. C purchases some pick your own cherries and pays A RM10.00 to pick and pack them for her. The contract between A &C is valid. True or False?

2. Wafa owns a very successful ice-cream business, owning a number of stores in Kuala Lumpur. She has formed a number of contracts which she is concerned about. She would like some advice on whether she has to continue under the contracts or might be able to opt out of them in some way. The first contract Wafa has is with a supplier of industrial ice-cream machines for the opening of five new stores. The ice-cream machines are worth RM 10,000 each and this supplier is the only one in the country. Wafa has ordered five of these machines but the supplier has only given her four, and has told her they do not have the fifth one. Wafa is not particularly happy with the price of her leasehold agreement in her Setapak's store. After speaking to the owner of the store next to her, she has found out they are paying half the price that she is. After learning this, Wafa wishes to attempt to discharge her obligations under the lease and renegotiate the price. After studying the contract, Claire has found a term which states ‘it is a condition of the contract that the property will be re-painted by the owner of the land before the tenancy starts’. The tenancy has started and the property was not re-painted. Wafa has a contract with Ikmal for the supply of ingredients for her ice cream. The contract runs for another six months, but both parties wish to discharge their obligations under the contract. Kindly advise Wafa on all the above cases.

3. Zetty is an owner of 3 pieces of land which worth RM 20,000,000.00. Zetty appointed Robert, a lawyer to prepare a deed of trust on her behalf and acting as her trustee on her properties. After a year, Zetty find out that one of the lands was sold to an Indian guy by the name of Datuk Rahul. Kindly advise Zetty.

Answer 1

1. A agrees to pick and pack cherries for B for RM15 per hour at Cherrytree Farms which also allows customers to pick their own cherries. C purchases some pick your own cherries and pays A RM10.00 to pick and pack them for her. The contract between A &C is valid. True or False?

Answer: False

This contract is invalid  as A does not have the legal capacity to enter contract as he is not the owner of Cherrytree Farms.In case a person, who enters the contract is not competent to make agreements, such as she or he does not have the required competence to perform a legal act or right or represent the party in whose name the agreement is to be made in then the contract is invalid. A had entered a contract with B for picking cherries for a consideration, he is neither the owner of the farm , nor the representative of B so he cannot recieve consideration from another party to pick cherries from the farm for them.The consideration (money ) rightfully should go to the owner.