Multimedia University Law Moot Competition (Finals) Problem Clarifications

Team 13

1.      "RS agreed to sell and RB agreed to purchase 1,140.40 acres of land in Mukim Melaka Tengah in the state of Melaka for a price of RM3,000,000.00. After payment of the deposit (10%) and three 3 instalments amounting to RM300,000.00 towards the purchase price,"

               Regarding to this statement, it does not sound to be correct as :

·                    10% deposit of RM 3,000,000 should be rm300,000.00

 Since they say After payment of the deposit (10%) and three 3 instalments amounting to RM300,000.00, then shouldnt the amount should be more than RM300,000.00?  

2.      Deposit + 3 installments = ?
RM300,000+ (unknown installment) = more than RM300,000 , isn’t it?

3.      If the amount written above is correct or wrong, what’s the amount of installments paid?

4.      What is the amount of installment paid for third instalment? and what is the deposit then, if the amount stated is wrong?

The deposit is 10% from the Purchase Price. Thus, it is RM300,000.00. The figure of RM300,000.00 given in the paragraph is only for the total amount for three instalments paid. Thus, back to the facts given, the amount that has been paid is more than RM300,000.00.  You may assume how much the payment of the 3^rd instalments.

5.      “Be entitled to forfeit the first instalment and the sum equivalent to eleven per centum (11%) per annum on the third instalment or portion thereof remaining unpaid/outstanding calculated from the due date until the date of such forfeiture by way of agreed liquidated damages”

 the word 'or' here does it mean that the 11% could either be thereof the 3rd installment OR the outstanding unpaid amount?

It means both. But since 3 instalment has been made, thus, the interest is given against the 3^rd instalment (look at judgment given by Court)

6.      Did the Bank Negara issue any terms and conditions for Loan, in terms of requirements? if so, what are they?

You may do some research on this one.

7.      What is the date of the BNM issue of restriction?

Assumption can be made.