ASSIGNMENT QUESTION

The High Court in Sri Kaiang Rock Products Sdn Bhd v Mayban Finance Bhd (19921 1 CU 204 stated at p 206. To constitute a valid contract there must be separate and definite parties thereto; those parties must be in agreement, that is there must be some consensus: those parties must intend to create legal relations in the sense that the promises of each side are to be enforceable simply because they are contractual promises.” Despite the general presumption which arises in business arrangements in Malaysia, do parties in a contract always intend to create legal relations?

This assignment assesses Course Learning Outcome 1:

Explain the fundamental legal principles, concepts and doctrines pertaining to the law of contract (C2. PL01)

General Expectations

Students are expected to conduct extensive research by employing both traditional and modern research methodologies. In producing good assignments students are advised to pay particular attention to the content of the essay, originality, and creative thought. style and presentation of the essay. referencing and acknowledgment of sources.

Specific Expectations

This assignment is designed to test the students’ understanding of the role and importance of the element of ‘intention to create legal relations in creating a valid and binding contract. In attempting this question, students are expected to:

• Examine the element and how it fits with the other basic elements of a contract. and the presumption that operates in commercial agreements, with cases to illustrate.

• Describe and analyze how the presumption can be rebutted.