Law

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Montesquieu quote that “absolute power corrupt absolutely”
絕對權力絕對腐敗 kuasa mutlak rasuah benar-benar
Explain the separation of power in Malaysia legal system. (3m)

The federal government adopts the principle of separation of power under Article 127 of the Federal Constitution and has 3 branches; 
executive, legislature and judiciary. 行政,立法机关和司法机构。eksekutif, perundangan dan kehakiman.

In the Malaysian context, our governing bodies are:
  (a) Executive (Government) – Power to put laws into actions.
        (b)
Legislature (Parliament) – Is the power to make and change of law.
  (c) Judiciary – Is the power to make judgments on law.

They are each intended to have very specific powers, that of enforcing the law, making the law and interpreting and applying the law. Each organ is in some manner answerable to the others.


2. Member of the parliament elected by the people thru democratic action.
State three roles under executive body 執行機構有三個角色 tiga peranan di bawah badan eksekutif (3m)

  • Menguatkuasakan undang-undang yang dibuat atau digubal oleh badan perundangan
  • Mentadbir sistem kerajaan
  • Pembentukan dan pelaksanaan dasar-dasar kerajaan
  • Isu-isu peraturan-peraturan bagi tadbir urus jabatan-jabatan kerajaan
  • Ia mempunyai kuasa untuk menangguhkan dan membubarkan badan perundangan
  • Penguatkuasa undang-undang yang dibuat atau digubal oleh badan perundangan
  • Tugas mesti dilakukan mengikut kuasa yang diberikan oleh undang-undang supaya ia tidak akan menjadi tidak sah dan diadakan ultra vires / kesan

3. Contract without consideration is consider as void.
Explain what is executory consideration and past consideration. (4m)

Kontrak tanpa balasan adalah dianggap sebagai tidak sah.
Terangkan apakah pertimbangan executory dan pertimbangan lalu.
Executory Consideration: 
when one promise is made in return for another 
a promise in return of promise.
consideration where parties exchange of promise to perform act in the future 
Eg: A agrees to sell his  car for RM20,000 to B.
       

B agrees to pay the sum of RM20,000 in consideration for A’s promise to sell the car
A promise to sell the car is the consideration for B’s promise to pay the RM20,000.
These are lawful considerations.
Past Consideration: Where one party has voluntarily performed an act and the other party later promises to reward for the voluntary act. Voluntary act is done first and the promise is made later.
Eg: If A finds and return B’s pen and in gratitude, B promise to pay A RM200 the promise is made in return for a prior act.
Under English Law, the general rule that is past consideration is insufficient to support a contract.

4. Contract enter by minor can be consider as void. 
Explain two exceptions that allow minor to enter into a contract.
(Explain by section) (4m)
(a) Contracts for necessity
* Sec 69 of Contract Act 1950
“if a person, incapable of entering into a contract, or anyone who, he is legally bound to support, is supplied by another person with necessaries suited to his condition in life, the person who has furnished such supplies is entitled to be reimbursed from the property of such incapable person”.
- Under contract of necessities a minor can enter valid contract if only it is the basic need of the minor and suitable of his situation in life or lifestyle.

(b) Contracts for scholarship
* Section 4 (a) Contracts (Amendment) Act 1976
“ The scholar entering into such agreement is not of the age of majority”
- Between a minor and the government or non-government organizations.
- Eg: Loan, sponsorship for the purpose of learning by government or educational institution.

(c) Contracts of Marriage
* Sec 4 (a) Age Majority Act 1971
Nothing in this Act shall affect the capacity of any person to act in the following matters, namely marriage, divorce, dower and adoption”.
- Similarly, a minor may enter into a contract of marriage or divorcement.
- Contracts of promise to marry entered into by minor are valid.
- A minor can sue or be sued in case of breach of promise to marry.
 

(d) Contracts of Insurance
* Insurance Act 1966
In Malaysia a minor can enter into insurance contract with the insurance company under the Insurance Act 1963 (Revised 1972). However, if the minor is below 16 years old, he/ she can only make insurance contract after taking written consent from his/ her parents or guardians.


(e) Contracts of Employment
* Sec 13 of Children and Young Person (Employment) Act 1966
-----------------------------------------------------------------------------------------------------------------------
5. Agency must act for the best interest of the principal.
Explain the statutory duties that stated under
Section 167 and Section 171 of Contract Act 1950. (6m)

* Sec 167
- “Agent’s duty to communicate with principal”

- Agent is under duty in cases of difficulty to use all reasonable diligence in communicating with his principal and in seeking the principal’s instruction. 
- Eg: Cases of emergencies, agent must use his discretion to the best interest of the principal.

*Sec 171
- “Agent’s duty to pay sums received on behalf of principal”.

-  Agent is bound to pay the principal all moneys received on account of the principal.
-
Agent may however, before giving all the monies deduct the following:-
a) Advances paid by the agent first, on behalf of the principal
b) Agent’s commissions
c) Agent’s remuneration (salary)


6. “Delegatus Non Protes” that the agent cannot delegate their power
to perform on behalf on themselves. Analyses the exception that allow
delegation of power to be conducted. (6m)

"perwakilan tidak membenarkan" ejen itu tidak boleh menurunkan kuasa mereka kepada orang lain bagi tujuan untuk melaksanakan bagi pihak mereka sendiri. Menganalisis pengecualian yang membolehkan penurunan kuasa akan dijalankan.
An agent may delegate his authority to another in the following circumstances:
a) Where the principal approves the delegation of authority
b) Where it is presumed from the conduct of the parties that the agent would have power to delegate his authority.
c) Where custom of the trade or business permits delegation.
d) In case of necessity or unforeseen emergency, for example, illness of agent.

https://sol.du.ac.in/mod/book/view.php?id=644&chapterid=381

A ‘sub-agent” is a person employed by and acting under the control of the original agent in the business of agency (Sec. 191). In the following cases an agent can appoint a sub-agent unless he is expressly forbidden to do so:-
(i)    When the ordinary custom of trade permits the appointment of a sub-agent.
(ii)  When the nature of the agency business requires the appointment to a sub-agent.
(iii)  When the act to be done is purely ministerial and involves no exercise of discretion or confidence, e.g. routine clerks and assistants.
(iv) When the principal agrees to the appointment of such a sub-agent expressly or implidly. 
(v)  When some unforeseen emergency has arisen.

Substituted agent
Where an agent holding an express or implied authority to name another person to act in the business of the agency, has accordignly, named another person such person is not a sub-agent but a substituted agent. The substituted agent shall be taken as the agent of principal for such part of the work as is entrusted to him (Sec. 194).
ExampleA directs B, his solititor, to sell his estate by auction, and to employ an auctioneer for the purpose. B names C, an auctioneer to conduct the sale. C is not a sub-agent, but is A’s agent for the conduct of the sale.
In selecting substituted agent for his principal an agent is bound to exercise the same amount of discretion as a man of ordinary prudence would exercise in his own case, and if he does this, he is not responsible to the principal for acts or negligence of the substituted agent.
ExampleA instructs B, a merchant, to buy a ship for him. B employed a ship surveyor of good reputation to choose a ship for A. The surveyor makes the choice negligency and the ship turns to be unseaworthy and is lost. B is not, but the surveyor is responsible to A.


7. Tortious action might be quite similar to criminal.
Explain four differences between criminal law and law of tort. (6m)
Criminal Law
Law Of Tort
1. wrongful act that the state or federal government has identified as a crime. (crime committed)

1. wrongful act that injures or interferes with another's person or property. (civil wrong)

2. criminal proceeding (criminal case)

2.  civil court proceeding (civil case)

3. The victim is the person who has been hurt

3. The accused is the "defendant" and the victim is a "plaintiff." 

4. The charges are brought by the government. If the defendant loses, the defendant must serve a sentence. A fine is paid to the government and there is possible restitution to the victim.
the guilty party will either have to pay a fine or he/she will be imprisoned for a particular period.

4. The charges are brought by the plaintiff.
If the defendant loses, the defendant has to pay damages to the plaintiff.
guilty party will have to pay compensation.


immediate purpose
punishment of criminal
compensation of victim
balance of defendant's wrong and victim's injury
emphasis on df's moral wrong, not victim's injury
emphasis on victim's injury, not df's moral wrong
theory of offense
offense to all society; public interest
only victim injured; private interest only




















8. Neighbor principle establish in the case of Donoghue v Stevenson .
Explain what is mean by “neighbor” that describe by Lord Atkin.(8m)

- Famous cases of Donoghue vs. Stevenson (1932)
- Snail in the bottle case
- Established when duty of case might arise.
-
says that a person should take reasonab
le care to avoid acts or omissions that s/he can reasonably foresee as likely to cause injury to the neighbor. Neighbor includes all persons who are so closely and directly affected by the act that the actor should reasonably think of them when engaging in the act or omission in question.

- In the orginal case Donoghue drank a bottle of Ginger Beer manufactured by Stevenson. Having drunk some of the contents of the bottle, she claimed that the remnants of a decomposing snail plopped out into her glass. Donoghue then contracted gastroenteritis and sued Stevenson.
- As a result of this case, the legal principle of Duty of Care was formed. All manufacturers of products bear responsibility for any damage that their products cause, even if the the sufferer did not buy the product themselves (e.g. it might have been a present). Furthermore this principle extends not only to manufactured products but also services. Sport and recreation organisations provide services and must ensure that such services are safe for all the participants.
This case was a decision of the House of Lords that established a modern concept of negligence by setting out general principles whereby one person would owe another person a duty of care. Per Lord Atkin has used the ‘neighbour principle’ to solve the case.

Neighbour principle is a test to determine the existence of a duty of care whereby if a person does not take the usual degree of precaution, another person of his property maybe injured or damaged. Duty of care is the first element of negligence. For example, a negligence security guard on a certain residential area would resulted in danger to the people that live in that area. In this case, the security guard has the duty of care towards the residents at that area.
Neighbour is the persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts. For example, the restaurant owners have the duty of care to make sure that the restaurant is always clean especially in the kitchen as it can be foresee that their negligence in their services may effect or causing injuries to the customers (neighbour).
Referring to the case of Donoghue v Stevenson, the ginger beer manufacturer has a duty of care towards the customer that drink it. The manufacturer has to ensure that their product is clean and safe to be consumed as the decomposed snail had been found in the ginger beer drink by the customer that caused him suffered severely ill as consequences.


SECTION B
1. Once a contract of agency is formed, the contracting parties owe certain
duties towards each other.
In the light of the relevant provisions in the
Contracts Act 1950 and decided cases, discuss the duties of a principal
towards the agent. (10m)

*Sec 175
- Agent to be indemnified against consequences of lawful acts

- Right of agent to be indemnified by principal against consequences of all lawful acts done by agent in exercise of authority conferred on the agent.
*Sec 176
- Agent to be indemnifies against consequences of acts done in good faith

-
Right of agent to be indemnified by principal for consequences of acts done by agents in good faith for which the agent was appointed by the principal to do notwithstanding it may cause an injury to the right of 3rd persons.
*Sec 177
- Non liability of employer of agent to do a criminal act

- One person employs another to do an act which is criminal, employer is not liable to the agent whether express or implied promise to indemnify him against the consequences of that act
*Sec 178
- Compensation to agent for injury caused by principal’s neglect

- Right of agent to compensation from principal in respect of injury caused to the agent by the principal’s neglect or want of skill


2. Dato' X appointed Mr Y, a real property agent, to buy a bungalow
house at Impiana
Height at the price of RM5 million. Mr Y bought a bungalow
house at Impiana Height at the price of RM5.5 million. Mr Y had also
obtained an insurance policy for the house even though there was
no instruction from Dato' X to do so.
Dato' X liked the house very much and ratified the contract upon being
informed about the contract.
However, Dato' X had requested time to
consider the contract of insurance policy and he only ratified the contract
 3 months later after the house was destroyed by fire.
With reference to Contracts Act 1950 and decided cases, advise Dato' X
whether he
is bound by the contracts (10m)
Under Sec 149 of Contract Act 1976, where acts are done by one person on behalf of another but without his knowledge or authority, he may elect to ratify or to disown the acts. If he ratifies them, the same effect will follow as if they had been performed by his authority.
In this case, Mr Y, the real property agent has exceeded his authority when he buy the bungalow at the price of RM5.5m instead of RM5m by which instructed by Dato X. Because Dato X likes the house so much therefore he ratified and therefore he is bound to the contract. There are conditions of a valid ratification:
1.      The contract done by agent was without authority and exceed authority
2.      The contract recognised by law
3.      The agent must act as agent for the principal not in his own name
4.      The principal must exist when the contract was made
5.      The principal must have contractual capacity
6.      The principal must have knowledge of all material facts
7.      The principal must ratify the whole contract
8.      Ratification must be made within a reasonable time
9.      Ratification must not injure or affect the interest of a third person
As for the contract of insurance policy, the contract is void because Dato X only ratified the contract after the incident of fire happened. Under sec 57(2) of Contract Act 1976, contract to do act afterwards becoming impossible or unlawful. Therefore, Dato X unable to make a claim to the insurance company.

Valsala – Agency Law: ratification appointment
à Mr Y is exceeding the authority asked by Dato X
à Dato X ratified the house contract
à Ratification had been made by principal
Contract Act: Dato X ratified the contract after 3 months
- the house destroy by fire
- fall under Sec 57 for frustration of the contract (Doctrine of frustration)
- Dato X unable to claim for the compensation.

Karen -
1. Communication of Proposal *Sec 4 (1), Contract Act 1950
2. Communication of Acceptance *Sec 4 (2)
3. Revocation of Offer & Acceptance
- must be communicated *Sec (3)
- Time of Revocation Sec 5 (1): Offer can cancel
 *Sec 5(2) Acceptance can cancel anytime before acceptance complete


Introduction To Law – Mock Question
Set B
1. Malaysia legal system practices separation of power.
Explain three differences between legislative power and executive power. (3m)
(a) Executive (Government)
(i)Enforce laws and to maintain laws.
(ii)Appoint officials and oversee the administration of government responsibilities.
(iii) Defend and preserve the unity and integrity of the country.
(iv) Policy making
        (b)
Legislature (Parliament)
(i) Is the power to make and change of law.
(ii) Has the task of passing laws and supervising their implementation.
(iii) Parliament exercises control over the executive, checks the work of the Federal Government and the administrative institutions.
 

2. Parliament is the place where law is debate and law to enacted.
Give four source of law in Malaysia. (3m)
(a) Federal Law by Parliament (Written Law)
(b) State Law made by State Assemblies (Written Law)
(c) Principle of English Law (Unwritten Law)
(d) Islamic Law (Written Law)
(e) Customary Law (Unwritten Law)
(f) Federal Constitution (Written Law)

3. Contract without consideration is consider as void.
Explain what is executory consideration and past consideration. (4m)
Executory Consideration: when one promise is made in return for another or a promise in return of promise.
Eg: A agrees to sell his  car for RM20,000 to B.
       B agrees to pay the sum of RM20,000 in consideration for A’s promise to sell the car
      A promise to sell the car is the consideration for B’s promise to pay the RM20,000.
      These are lawful considerations.
Past Consideration: Where one party has voluntarily performed an act and the other party later promises to reward for the voluntary act. Voluntary act is done first and the promise is made later.
Eg: If A finds and return B’s pen and in gratitude, B promise to pay A RM200 the promise is made in return for a prior act.
Under English Law, the general rule that is past consideration is insufficient to support a contract.
4. Contract can be discharged by many way.
Explain the discharged of contract under section 57 of Contract Act 1950. (4m)
There are 4 categories of discharged of contract:

a)    Discharge by performance
*Sec 38(1)
-
parties to a contract must either perform or offer to perform their promise, unless such performance has been dispensed with by any law.

b)    Discharge by agreement
* Sec 63 Contract Act 1950
-
Contract created by consent can be discharged by consent. It can be at any time of the contract (express consent) or subsequent to contract (waiver, novation, release, remission and rescission).

c)     Discharge by frustration
* Sec 57 (2) of Contracts Act 1950
-
When there is a change in the circumstances which renders a contract legally or physically impossible of performance. It happens when a contract to do an act becomes impossible or unlawful.

d)    Discharge by breach of contract
*
-
If one of the parties in a contract refuses to perform his promise it is said that the contract has been discharged by breach.
- Eg: A agrees to sell his condo to B for RM500,000 but after some days A refuses to sell the condo. A has breached the contract.

5. Agency must act for the best interest of the principal.
Explain the statutory duties that stated under Section 167 and Section 171 of
Contract Act 1950. (6m)
* Sec 167
- “Agent’s duty to communicate with principal”

- Agent is under duty in cases of difficulty to use all reasonable diligence in communicating with his principal and in seeking the principal’s instruction. 
- Eg: Cases of emergencies, agent must use his discretion to the best interest of the principal.

*Sec 171
- “Agent’s duty to pay sums received on behalf of principal”.

-  Agent is bound to pay the principal all moneys received on account of the principal.
-
Agent may however, before giving all the monies deduct the following:-
a) Advances paid by the agent first, on behalf of the principal
b) Agent’s commissions
c) Agent’s remuneration (salary)


6. “Delegatus Non Protes” that the agent cannot delegate their power to
perform on behalf on themselves .Analyses the exception that allow
delegation of power to be conducted.
(6m)
An agent may delegate his authority to another in the following circumstances:
a) Where the principal approves the delegation of authority
(Case: De Bussche v Alt 1878)
Fact- The principal appointed an agent in China to sell a ship at certain price. However, the agent was unable to sell the ship so he sought the principal’s approval to appoint sub agent to sell the ship in Japan.
Held- There was no breach of agent’s duty in appointing a sub agent because there was an express consent to such delegation.
b) Where it is presumed from the conduct of the parties that the agent would have power to delegate his authority.
c) Where custom of the trade or business permits delegation.
d) In case of necessity or unforeseen emergency, for example, illness of agent.

7. Tortious action can be trespass to person or trespass to land.
Explain the defenses available under trespass to land. (6m)
(a) License: permission to enter land and may be express, implied or contractual.
(b) Necessity: A defendant is excused from liability for trespass to land if the action is strictly necessary to prevent public disaster.
(c) Justification by Law: Where defendant is legally authorized to enter onto the claimant’s land by statutory authority, he can’t be liable for trespass on land
eg: the police have powers under the Police and Criminal Evidence Act 1984 to enter premises and search them
(d) Consent: A person or claimant who agrees to a certain action cannot complain or sue.


a) The defendant had consent
b) The plaintiff was not entitled to exclusive possession of the land
c) The plaintiff did not have actual possession of the land
d) The action was not intentional
e) The action was authorized by legislation
f) The plaintiff gave permission for the defendant to be on the land for an express purpose or period of time.


8. Neighbour principle establish in the case of Donoghue v Stevenson .
Explain what is mean by “neighbour” that describe by Lord Atkin. (8m)
- Famous cases of Donoghue vs. Stevenson (1932)
- Snail in the bottle case
- Established when duty of case might arise.
-
says that a person should take reasonable care to avoid acts or omissions that s/he can reasonably foresee as likely to cause injury to the neighbor. 
Neighbor includes all persons who are so closely and directly affected by the act that the actor should reasonably think of them when engaging in the act or omission in question.

- In the orginal case Donoghue drank a bottle of Ginger Beer manufactured by Stevenson. Having drunk some of the contents of the bottle, she claimed that the remnants of a decomposing snail plopped out into her glass. Donoghue then contracted gastroenteritis and sued Stevenson.
- As a result of this case, the legal principle of Duty of Care was formed. All manufacturers of products bear responsibility for any damage that their products cause, even if the the sufferer did not buy the product themselves (e.g. it might have been a present). Furthermore this principle extends not only to manufactured products but also services. Sport and recreation organisations provide services and must ensure that such services are safe for all the participants.

This case was a decision of the House of Lords that established a modern concept of negligence by setting out general principles whereby one person would owe another person a duty of care. Per Lord Atkin has used the ‘neighbour principle’ to solve the case.

Neighbour principle is a test to determine the existence of a duty of care whereby if a person does not take the usual degree of precaution, another person of his property maybe injured or damaged.

 Duty of care is the first element of negligence. For example, a negligence security guard on a certain residential area would resulted in danger to the people that live in that area. In this case, the security guard has the duty of care towards the residents at that area.

Neighbour is the persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts. 

For example, the restaurant owners have the duty of care to make sure that the restaurant is always clean especially in the kitchen as it can be foresee that their negligence in their services may effect or causing injuries to the customers (neighbour).

Referring to the case of Donoghue v Stevenson, the ginger beer manufacturer has a duty of care towards the customer that drink it. The manufacturer has to ensure that their product is clean and safe to be consumed as the decomposed snail had been found in the ginger beer drink by the customer that caused him suffered severely ill as consequences.

SECTION B
1. Donoghue v Stevenson set a landmark cases to establish tort of negligence.
Explain briefly the element on negligence under law of tort. (10m)

(a) Duty of Care
The outcomes of some negligence cases depend on whether the defendant owed a duty to the plaintiff. Such a duty arises when the law recognizes a relationship between the defendant and the plaintiff, and due to this relationship, the defendant is obligated to act in a certain manner toward the plaintiff. A judge, rather than a jury, ordinarily determines whether a defendant owed a duty of care to a plaintiff. Where a reasonable person would find that a duty exists under a particular set of circumstances, the court will generally find that such a duty exists.
In the example involving the defendant loading bags of grain onto a truck, and striking a child with one of the bags, the first question that must be resolved is whether the defendant owed a duty to the child. In other words, a court would need to decide whether the defendant and the child had a relationship such that the defendant was required to exercise reasonable care in handling the bags of grain near the child. If the loading dock were near a public place, such a public sidewalk, and the child was merely passing by, then the court may be more likely to find that the defendant owed a duty to the child. On the other hand, if the child were trespassing on private property and the defendant did not know that the child was present at the time of the accident, then the court would be less likely to find that the defendant owed a duty.
a) Duty of care- there must a wrongful and unauthorized act or omission by the defendant
- in order to determine the existence of duty of care, the objective test must be applied
- For example, would a reasonable man who is in the same circumstances as the Defendant foresee that his conduct will affect the plaintiff?
- If the answer is affirmative, then the plaintiff owes a duty of care.

(b) Breach of Duty
A defendant is liable for negligence when the defendant breaches the duty that the defendant owes to the plaintiff. A defendant breaches such a duty by failing to exercise reasonable care in fulfilling the duty. Unlike the question of whether a duty exists, the issue of whether a defendant breached a duty of care is decided by a jury as a question of fact. Thus, in the example above, a jury would decide whether the defendant exercised reasonable care in handling the bags of grain near the child.

Breach of duty of care- the act or omission affect the interest or rights of others
- It is consider as a breach once the defendant does something that falls beneath the minimum standard of care required of him/ her and the minimum standard of care is one of a reasonable man.
- the question to ask is whether a reasonable man faced with the same circumstances of the Defendant would have acted the same way as the Defendant.
 - if the answer is no then defendant has breached the duty of care.

(c) Cause in Fact
Under the traditional rules in negligence cases, a plaintiff must prove that the defendant's actions actually caused the plaintiff's injury. This is often referred to as "but-for" causation. In other words, but for the defendant's actions, the plaintiff's injury would not have occurred. The child injured by the defendant who tossed a bag of grain onto a truck could prove this element by showing that but for the defendant's negligent act of tossing the grain, the child would not have suffered harm.

(d) Damages
A plaintiff in a negligence case must prove a legally recognized harm, usually in the form of physical injury to a person or to property. It is not enough that the defendant failed to exercise reasonable care. The failure to exercise reasonable care must result in actual damages to a person to whom the defendant owed a duty of care.

Damages- 
 the injured party or victim to have a right to damages
- in order to determine the damages, the court would enquire as to the chain of causation
- For example, there is an ink between the breach and the damages suffered by the plaintiff
- therefore, the court would apply the but-for-test whereby the causes involved in the said negligent act and whether the plaintiff had contributed to the said breach of duty of care.


2. May, who is a 15-year-old girl, would like to enter into a legal contract
with her 21-year-old friend, June. Consider whether May and June have
the legal capacity to make a contract or not, by highlighting the relevant
provisions in Contracts Act 1950 and decided cases.
Would your answer be different if either May was a mentally disordered
person or June had been declared bankrupt under Section 3 of the
Bankruptcy Act 1967? (10m)

Under Sec 11 Contract Act 1950, “every person is competent to contract who is of the age of majority according to the law to which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject”
In Malaysia, the age of majority is 18 years old (Age of majority Act)
However, there are exception cases for minor enter into contract:-
1)    Contract for necessaries
2)    Contract of scholarship
3)    Contract of insurance.
For May, she is only 15 years old therefore she cannot enter into contract but June is allowed because she is 21 years old.

If May is a mentally disordered person, the answer remain the same because a person to enter contract must be sound of mind. Sec 12 (1), a person is said to be sound of mind for the purpose of making a contract if, at the time when he make it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest. In this case, she cannot enter into contract because she is minor and not sound mind.

If June had been declared bankrupt under Section 3 of the Bankruptcy Act 1967, she cannot enter into contract because she is disqualify from contracting by any law. In this case, she cannot enter into contract.

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