Question

1. Fire Smelters Berhad has agreed to sell a melting furnace to Mangkuk Sdn. Bhd. and has given an undertaking that the melting furnace would have a temperature of not lower than 1427 degree celcius. Fire Smelters Berhad delivered the furnace but the specification was not fulfilled, i.e. the furnace could only reach a temperature of 1000 degree celcius. Advise Mangkuk Sdn. Bhd.

2. Sam buys a bag of charcoal from Utama Jaya so that his family can enjoy themselves sitting around the fireplace in their flat. Unfortunately the bag of charcoal contained an explosive device which exploded when Sam lit the fire. Sam was badly injured. Advise Sam.

3. What is the law which has been decided in the case of Associated Metal Smelters Ltd vs Tham Cheow Toh (1971) 1 MLJ 271?

4. Describe the ways in which an agency can be created.

reference

business law question

Answer 1

Fire Smelters Berhad

i. Section 15 of the Sale of Goods Act is on the sale of goods by description. It states that where there is a contract for the sale of goods by description there is an oblique condition that the goods shall agree with the depiction; and, if the sale is by sample as well as by description, it is not adequate that the wholesale of the goods agrees with the sample if the goods do not also agree with the description.

ii. In this case, the party’s preceding agreements involved the sale goods being melting furnace, which was vended have a temperature of not lower than 1427 degree Celsius. Later the preceding contract narrative of melting furnace was used to order and melting furnace of identical excellence was transported but, only reach a temperature of 1000 degree Celsius. The court held that the goods did not comply with the description.

Sam

The legal issue is whether Mr Sam can sue Utama Jaya goods for being in poor condition for commitments for which he required them. The charrcoal is not fit for the purpose that Mr Sam wanted to use. With mention to the case Preist v Last (1903) , The 2nd legal issue is whether the goods are of saleable excellence. In this condition, Mr Sam can assert for reimbursement and medical expenses from the Super-Mart

Associated Metal Smelters Ltd vs Tham Cheow Toh (1971)

The plaintiff settled to sell a metal furnace to the defendant and had assumed that the metal furnace would have a temperature of not less than 2,600 degrees Fahrenheit. When the appellant did not gratify this requirement the defendant brought an action claiming breach of an express condition of the

Modern test – seriousness of the consequences of the breach contract and claimed damages. (Term was condition however treatment of the breach of contract was classified as warranty)