Interpretation Act & Frustration in Contract

(a) Define the term ‘subsidiary legislation’ as provided under the Interpretations Act, 1948 and 1967 and describe how it is made. (4 marks)

(b) Haron entered into a contract with Aziz to purchase all the timber harvested from Aziz’s timber concession. The value of the contract amounts to RM1,000,000.00. The contract includes the cutting down and extraction of the timber from the concession area. At the time of the contract, Haron paid a 10% deposit to Aziz. However, before Aziz could deliver the timber, a heavy flood swept all the timber to sea and was lost. The flood is a natural phenomenon in the area but its magnitude came as a surprise to Aziz. Aziz is unable to replace the lost timber since his concession no longer has such a quantity of timber.

Advise Aziz on his obligations towards Haron regarding their contract. (6 marks)

(c) The Contracts Act 1950 generally prohibits a minor to enter into a contract. This prohibition is however not without exceptions. State and explain any two (2) exceptions. (4 marks)

(d) N/A Sale of Goods

(ii) N/A Sale of Goods Act 1957

(MIA QE 2013/9 Q1, 20 marks)

(a) Definition of Subsidiary Legislation.

In Malaysia, s3 of the Interpretation Act 1948 and 1967 (Act 388) (Consolidated and Revised 1989) defines such legislation as

'any proclamation, rule, regulation, order, notification, by-law or other instrument made under any Act, Ordinance or other lawful authority and having legislative effect.'

Wan Arfah Hamzah (2009) A First Look at the Malaysian Legal System. Oxford Fajar. Pg: 59.

(b) On Frustration in a contract,

Similar question was asked in:
MIA QE 2010/9 Q1 (a)(ii) Mark rented David's hall.
MIA QE 2012/9 Q1 (b)(ii) Explain how a contract may be ‘discharged by frustration’.
MIA QE 2011/3 Q1 (a)(ii) Mark entered into a contract with David Oil Palm Plantation.
MIA QE 2013/9 Q1 (b) Haron and Aziz purchase of timber but destroyed by flood.
2011 D02 Q2 Discharging obligation under contract.
LPPEH 2012 D02 Q1 Doctrine of frustration.

Earlier posts.