Discuss whether Best Gas is bound by the contract with Indah Paradise and whether Best Gas is bound to refund the service deposit amount of RM50,000/-.

  • Explain whether a third party is required to have constructive notice of the contents or requirements of a company’s constitution and whether he needs to know of the company’s internal procedures.
  • Discuss whether Best Gas is bound by the contract with Indah Paradise and whether Best Gas is bound to refund the service deposit amount of RM50,000/-.
  • Give FOUR (4) suggestions on what should have been done by Hamdan on 15-3-2023 when Indah Paradise made a contract with Best Gas and when Hamdan was asked by Gerald to pay Best Gas a “service deposit”.
  • Assume that Best Gas wishes to resolve its dispute with Indah Paradise peacefully by offering to enter into a fresh contract with Indah Paradise. Give THREE (3) suggestions on the terms that Best Gas may include in the proposed fresh contract
  • Assume the following different facts: There was a defect in Gerald’s appointment as a director of Best Gas. This fact was not known to anyone in Best Gas or Indah Paradise at the time when the Indah Paradise contract was made on 15-3-2023.
    (i) Explain whether the validity of a director’s act is affected by any defect in his appointment or qualification.
    (ii) Discuss whether Gerald’s act of signing the Indah Paradise contract was valid.
  • Discuss whether Best Gas can obtain an injunction against Johan Gas to restrain the latter from continuing to solicit business from Best Gas’s customers.