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END-OF-SEMESTER EXAMINATION

SEMESTER II, 2007/2008 SESSION

AHMAD IBRAHIM KULLIYYAH OF LAWS

Programme : Bachelor of Laws Level of : Third

Study

Reading Time : 9.00 a.m. 9.15 a.m. Date : 29.3.2008

Duration : ( 15 minutes )

Answering Time : 9.15 a.m. 12.15 p.m. Section(s) : All Sections

Duration ( 3 hours )

Course Title : Equity & Trusts I Course Code : LAW 3710

This Question Paper Consists of 7 Printed Pages With 6 Questions.

INSTRUCTIONS TO CANDIDATES

DO NOT OPEN UNTIL YOU ARE ASKED TO DO SO.

Answer FOUR (4)questions only.

REFERENCE ALLOWED

Specific Relief Act 1950 / Selected Malaysian Statute on Equity & Trust

Any form of cheating or attempt to cheat is a serious

Offence which may lead to dismissal

Statutes should be free from any form of annotation.

APPROVED BY

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QUESTION 1

a) Equity varies according to the Chancellors foot

Discuss the application of the above statement during the period of the Chancery

Court and in its effect under the Specific Relief Act 1950.

(7 marks)

b) The Court of Judicature Act 1925 was enacted to solve the conflict between

common-law and equity during the 16th

and 17th

century in England. Briefly

illustrate the event that led to the conflict and in what way the conflict was resolved.

(8 marks)

QUESTION 2

In January 2007, the Government announced that a company by the name of SPE Q (SQ)

will be undertaken a project to build a few government buildings in the district of Tanah

Merah. These include offices for the defence ministry and immigration department.

Through an exchange of letter, SQ entered into an agreement with Faber Composites

Berhad (FCB) for the supply of 400 composites lamp poles to be used in the project.

It was later agreed between these two parties that the payment for the supply of poles will

be made by the Public Works Department (PWD)(the fund-holder for the government)

with the authorization from SQ. SQ allowed the payment to be deducted from the

progress payments due to them

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FBB wrote to PWD demanding for the payment but the latter refused on the ground that

SQ has directed PWD to make such payment to them instead.

Advise all parties.

(15 marks)

QUESTION 3

a) Legal maxims are theoretical abstractions that are expressive of the goals and

objectives of Shariah. Some legal maxims are of general application whereas others

might apply to some particular areas of Islamic jurisprudence(fiqh) such as worship,

transactions, contracts and courts proceeding. Explain and illustrate the following

legal maxims.

i) Harm must be eliminatedii) Acts are judged by the intention behind themiii) Hardship begets facility.

(9 marks)

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Apply suitable maxims to the following scenario:

b) Aman entered into a tenancy agreement with Goh Showmaster (Goh) for cinemarental for 3 years with an option to renew it. Goh however, refused to give the

option, instead sent a notice to vacate in the following month together with an

amount of compensation offered to Aman. The agreement provides that all tenants

must receive adequate notice. Advise Aman whether equity would have a ground

for him to challenge the notice.

(3 marks)

c) Richard, the owner cum Chief Executive Officer (CEO) of a company was alleged

to mistreat the employees. They claimed that most of the perks were enjoyed by

him alone. Jason, one of the employees who believes that he has been denied of the

perks took some of the equipments in the office in order to compensate what he

supposes to benefit from the company. Jason has tried to discuss with some of his

friends about the mistreatment but all of them seem to accept the situation and

furthermore believe that nothing much can be done as a staff.

(3 marks)

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QUESTION 4

a) The main purpose of Mareva injunction is to prevent the defendant fromdissipating or removing the assets out of jurisdiction of the court before trial, so that

if the judgment is in favour of the plaintiff, there will be assets to satisfy the

judgment. Nevertheless, Mareva injunction is a purely discretionary remedy and

may be granted only when it is just and convenient to do so.

Explain the position of the Mareva injunction in Malaysia, its obstacles and

principles.

(8 marks)

b) Prem is an owner of or exclusive licencee under the copyright of Warner Sisters

Ltd, an overseas company, which specialised in various recording album in

Malaysia. He discovered that the Doreme was selling and distributing infringing

copies of these recordings. Prem has brought an action against Doreme and at the

same time prior to trial the court granted Prem with Anton Piller Order, in order to

obtain incriminating materials from Doreme to be used during trial.

Can Doreme use any privilege to protect him from being incriminated for other

offences?

(7 marks)

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QUESTION 5

a) Imagine that you are a defence counsel in a claim by the plaintiff for specificperformance of a contract. Explain with reference to SRA and decided cases on the

following:

i) Two characteristics of specific performance (4 marks)

ii) Three defences that you may invoke to defend your client against such claim.

(6 marks)

b) Ali agreed to sell his Malay Reservation land in Kulai to Kamar. Last month Ali got

to know that Kulai will be declared to be a halal hub under the Iskandar

Development Region thus decided not to proceed with the sale. He offered an

attractive amount of compensation to Kamar.

Advise Kamar.

(5 marks)

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QUESTION 6

English law defines it as: "a principle of justice and of equity. It comes to this: when a

man, by his words or conduct, has led another to believe in a particular state of affairs, he

will not be allowed to go back on it when it would be unjust or inequitable for him to so."

Moorgate Mercantile v Twitchings[1976] 1 QB 225, CA at 241 per Lord Denning MR.

Based on the above statement, discuss the types, the differences as well as the application

of equitable estoppel under the Malaysian land law.

(15 marks)