Explain the “neighbour principle” as stated by Lord Atkin in Donoghue v Stevenson.

Answer ALL questions. Each question carries 10 marks.

1. Explain the “neighbour principle” as stated by Lord Atkin in Donoghue v Stevenson. 

2. In relation to the law of tort, explain the legal term “contributory negligence”.

3. Explain the terms “offer” and “acceptance” in contract.

4. The general rule is that no one can give a better title that he has himself. Discuss this general rule and state the exceptions.

5. Describe the principle of “limited liability” in a limited liability partnership.

6. Describe factors to consider during the planning stage of pre-incorporation of a company.

7. “A promises to pay B RM10,000 at the end of six months, if C, who owes that sum to B, fails to pay it. B promises to grant time to C accordingly”. Advise the lawful consideration of the above.

8. P entered into a 10-year lease of a warehouse. Thereafter, the local authority closed the only street access to the warehouse because of a dangerous building. The street was to be re-opened after the dangerous building was demolished. Discuss whether P could refuse to pay rent and have the contract set aside on the basis of frustration.

9. A, who was a director and secretary of R’s co-operative society, bought land at the price of RM900,000 on behalf of R. A knew that the vendor had earlier paid RM450,000 for it but did not inform R accordingly. It turned out that A had received RM150,000 as benefit from the vendor. Advise R.

10. An offer to contract was made to you by email. You decided to accept that offer and replied by email stating your acceptance. When is the acceptance validly communicated?