Topic 2

What is the definition of a contract according to Section 2(h) of the Contract Act 1950?

• An agreement that is not legally binding.

• An agreement enforceable by law.

• An agreement between companies only.

• An agreement that applies only to criminal matters.

Which legislation primarily governs contracts in Malaysia?

• Civil Law Act 1956

• Criminal Procedure Code

• Contract Act 1950

• Federal Constitution

If there is a conflict between the Contract Act 1950 and the Civil Law Act 1956, which legislation prevails?

• Civil Law Act 1956

• English Common Law

• Contract Act 1950

• Federal Constitution

What is the primary objective of contract law?

• To resolve criminal disputes.

• To regulate contractual obligations and provide a legal framework for resolving disputes between contracting parties.

• To govern constitutional matters.

• To apply only to government contracts.

Which of the following correctly defines a valid contract?

• An agreement between two parties that is not legally enforceable.

• A written or expressed agreement between two parties to provide a product or service.

• An agreement that only requires consideration from one party.

• An agreement without any terms or conditions.

What does the doctrine of privity of contract state?

• Only parties to the contract can acquire rights and liabilities under it.

• Third parties can acquire rights and liabilities under the contract.

• Only the government can interfere with the contract.

• Any person can enforce the terms of the contract.

Under which section of the Contract Act 1950 is coercion defined?

• Section 14

• Section 15

• Section 16

• Section 17

In Kesarmal s/o Letchaman Das v Valiappa Chettiar [1954], what was the court's decision regarding coercion?

• The court held that coercion was not proven, and the contract was valid.

• The court held that the contract was valid due to mutual consent.

• The court held that consent was not freely given, and the agreement was voidable.

• The court ruled that the agreement was enforceable.

Which of the following correctly describes fraud under Section 17 of the Contract Act 1950?

• An unintentional misrepresentation that leads another party to enter into a contract.

• An unlawful act done to induce another party to enter into an agreement.

• An act committed with intent to induce another party to enter into a contract, knowing it to be untrue.

• An innocent statement that the speaker believes is true.

What is the primary difference between fraud and misrepresentation?

• Fraud is an unintentional act, while misrepresentation is intentional.

• Fraud involves an untrue statement that the speaker believes, while misrepresentation involves intent to deceive.

• Fraud involves an intentional act of deceit, while misrepresentation involves an untrue statement believed to be true by the speaker.

• There is no difference; both are treated equally under contract law.