UNIVERSITI TEKNOLOGI MARA

COURSE INFORMATION
Confidential

Course Code

LAW 166/379/251/299

Course Name

BUSINESS LAW

Level

Diploma

Total SLT

120 Equivalent to 3.0 credit

Face-to-Face (F2F): 41
Non Face-to-Face: 4 Guided and 75 Non Guided

Part

Course Status
(Core/Non Core)

Core

Prerequisite

None

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA

Course Outcomes
At the end of the course, students should be able to:
1. Define the basic legal requirements relating to business law in Malaysia.
2. Recognize the basis of a valid contract and its implications.
3. Apply the legal principles in solving relevant problems.

Course Description
This course provides an overview of the major aspects of business law. Topics covered
are legal aspects of business organization, law of contract, law of agency, hire purchase,
sale of goods and negotiable instruments.

Syllabus Content
1. Legal Aspects of Business Organisation
1.1 Basic definition and characteristics
1.1.1 Sole proprietorship
1.1.2 Partnership
1.1.2.1 Elements of partnership (Section 3 of Partnership Act 1961 )
1.1.2.2 Dissolution of Partnership
1.1.3 Company
1.1.3.1 Separate Legal Entity
1.2 Differences between sole proprietorship, Partnership, Company
2. Law of Contract
2.1

Introduction

2.2

Elements of a valid contract

2.2.1 Agreement
Definition of offer
Distinction between offer and invitation to treat
Communication of offer
Specific and general offer
Counter-offer
Revocation of offer
Definition of acceptance
Absolute and unqualified acceptance
Communication of acceptance (postal rule)
Revocation of acceptance

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA

2.2.2 Consideration
Definition
Types
Rules governing consideration and their exceptions
2.2.3 Capacity
Minors
Sound Mind
Disqualification

2.2.4 Intention to create legal relations

Domestic agreements
Commercial agreements
2.2.5 Certainty of contracts

2.3

Free Consent
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5

Coercion
Undue Influence
Fraud
Misrepresenataion
Mistake

2.4

Discharge of Contract
2.4.1 Performance
2.4.2 Agreement
2.4.3 Impossibility of Performance
2.4.4 Breach of Contract

2.5

Remedies for Breach of Contract

2.5.1
2.5.2
2.5.3
2.5.4
2.5.5

Rescission
Damages
Specific performance
Injunction
Quantum meruit

3.Law of Agency
3.1

Introduction
- Definition of agency

3.2

Creation of agency
- Express appointment
- Implied appointment
- Ratification
- Necessity
- Estoppel

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA

3.3

Types of authority
- Actual Authority
- Apparent authority

3.4

Relationship between principal and agent

- Duties of agent towards principal
- Duties of principal towards agent

3.5 Termination of agency

By act of parties
By operation of law

4. Law of Sale of Goods

4.1 Introduction
Definition
Classification of goods
4.2
-

Terms of contract
Conditions and warranties

4.3

Implied terms
Section 14
Section 15
Section 16
Section 17

4.4

Transfer of title
Nemo Dat Quod Non Habet Rule
Exemptions to the rule

4.5

Remedies for breach

Sellers remedies
Buyers remedies

5. Law of Hire Purchase

5.1

5.2

Introduction
Nature of hire purchase agreement
Formalities for valid hire purchase agreement

Statutory rights of hirers

Right to a copy of statement relating to his financial position
Right to assign
Transfer of right by operation of law
Right to early completion
Right to terminate
Right of appropriate of payment
- Right to apply to magistrate to remove the goods

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA

5.4

Repossession
Procedure of repossession
Hirers right after repossession

6. Negotiable Instruments
Characteristics of Cheques
Crossing of cheques
Alteration of cheque
Protection of Paying bank and Collecting bank
Teaching Methodology
a)
b)
c)

Lectures/Tutorial
Presentation sessions
Blended learning

Assessment
Coursework:
a) Test
b) Assignment/presentation

20%
20%
40%

Final Examination

60%

Recommended Text
-

References

Lee Mei Pheng, Business law , Oxford Fajar Sdn Bhd,2011

Lee Mei Pheng & Ivan Jeron Detta, Commercial Law Oxford Fajar Sdn Bhd,2011
th
Lee Mei Pheng, The General Principles of Malaysian Law (4 .Ed), 2001
nd
Wu Min Aun & B. Vohrah, The Commercial Law of Malaysia, (2 .Ed), Heinemann
Educational Books (Asia) Ltd.
th
Borrie, The Commercial Law, (5 .Ed), Butterworths, 1989.
th
R. Love, Commercial Law, (6 .Ed), Sweet and Maxwell, 1993
th
K.Smith & Keenan, Pitman, Mercantile Law, (5 .Ed), 1982.
Latimer Paul, Australian Business Law, 1982.

STATUTES

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA

1.
2.
3.
4.
5.
6.
7.

Contracts Act 1950.

Hire Purchase Act 1967.
Sale of Goods Act 1957.
Consumer Protection Act 1999
Partnership Act 1961
Companies Act 1965
Bills of Exchange Act 1949

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA

COURSE OUTCOMES PROGRAM OUTCOMES MATRIX

COURSE CODE

LAW 166/379/251/299

COURSE NAME

BUSINESS LAW

CREDIT HOURS

CENTRE OF
STUDY
UPDATED BY

FACULTY OF ADMINISTRATIVE SCIENCE

&POLICY STUDIES
SYUHAEDA AENI MAT ALI
APRIL 2014

DATE

TEACHING
METHODOLOGY

PROGRAM OUTCOMES
COURSE OUTCOMES
PO1

PO2

a. Define the basic legal

PO3

PO4

PO5

PO6

PO7

PO8

PO9

PO10

requirements relating to
commercial

law

ASSESSMENT

PO11

Lectures\
Tutorials

Coursework &
Final
Examination

Lectures\
Tutorials

Coursework &
Final
Examination

Lectures\
Tutorials

Coursework &
Final
Examination

in

Malaysia.
b. Recognize the basis of

a valid contract and its

implications

c. apply the legal

principles in solving
relevant problems.

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA

Program Outcomes (PO)

1. Ability to acquire and apply basic knowledge of management, administration and politics
2. Ability to identify formulate and solve administrative problems
3. Ability to communicate effectively with clients and stakeholders
4. Ability to act as a leader and effectively as a team member
5. Ability to recognize and apply professional standard of values and ethics in his/her works
6. Ability to solve problems using scientific techniques
7. Ability to gather information for sound decision making
8. Ability to continuously improve knowledge through life-long learning
9. Ability to interact with people at the professional and casual levels to take social responsibility
10. Ability to apply managerial and entrepreneurial skills

Fakulti Undang Undang

TahunSemakan:2014
Hak Cipta Universiti Teknologi MARA