LAW OF CONTRACT : CONSIDERATION & INTENTION TO CREATE LEGAL

Are the following statements true or false?

There is a rebuttable presumption that social domestic and family arrangements are not intended to be legally binding

• TRUE

• FALSE

Are the following statements true or false?

There is an irrebuttable presumption that parties to a commercial agreement intend it to be legally binding.

• TRUE

• FALSE

In social, domestic and family arrangement, the court presumes that there are not intended to be legally binding contract unless there is clear evidence which points to the contrary.

• TRUE

• FALSE

In commercial agreements, it is presumed that there is no intention to enter into legal relation.

• TRUE

• FALSE

Which of the following statements in incorrect?

i. if the agreement is of commercial nature, it is presumed that the parties intend legal relation.

ii. if an agreement is of a commercial nature, the parties cannot argue that there was no intention to create legal relation.

• I only

• II only

• I and II

• none of the above

Which of the following statements is incorrect?

i. Even if an agreement is of a commercial nature, it is open to the parties to show that legal relations were not intended.

ii. Even if a commercial agreement is in writing, it is open to the parties to show that legal relations were not intended.

• I only

• II only

• I and II

• none of the above

To recognize intention to create legal relations in an agreement, the court will look as whether the agreement is of ....

• commercial purposes or social arrangement

• social arrangement or public obligation

• commercial purposes or business activities

• social arrangement or former obligation

Mr. Maniam asked Fuad to carry a few boxes of books from his car to the library. After Fuad has done so, Mr. Maniam offers Fuad RM50 as a token of appreciation. Fuad accept Mr. Maniam offer. Consideration has already been made by Fuad before Mr. Maniam made the offer. Fuad is making …

• Executory consideration

• Past consideration

• Executed consideration

• None of the above

Ramiah agrees to sell to Yasmin a handbag and Yasmin promises to pay RM100 for it.

In the above situation, the consideration made by Yasmin is called ....

• executory consideration

• executed consideration

• past consideration

• executive consideration

Dahlia offers to reward anyone who finds and returns her lost cat. Tanjung finds and returns the cat to Dahlia. Tanjung claims for the reward.

In the above situation, consideration made by Tanjung is…

• valued consideration

• past consideration

• executory consideration

• executed consideration