SEMESTER II, 2003/2004 SESSION
AHMAD IBRAHIM KULLIYYAH OF LAWS
Programme : Bachelor of Laws Level of : Third
Reading Time : 9.00 a.m. – 9.15 a.m. Date : 2.3.2004
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 10 Printed Pages With 6 Questions.
INSTRUCTIONS TO CANDIDATES
DO NOT OPEN UNTIL YOU ARE ASKED TO DO SO.
Answer FOUR (4) questions only.
Question ONE (1) from Part A is Compulsory and choose at least ONE question from
Parts B and C.
Specific Relief Act 1950
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.
THIS QUESTION IS COMPULSORY
a. Daniel agreed to buy from Razali 5 acres of land at Sungai Buaya , Kuantan with a
purchase price of RM 5000 per acre. Daniel paid RM 10,000 upon the execution of
the Sales and Purchase Agreement. However, a few months later, Razali changed
his mind and refused to proceed with the Agreement. Therefore, he terminated the
agreement and refunded the sum of RM 10,000 to Daniel. Daniel is unhappy over
the incident as he has applied for a bank loan and has done all the necessary
arrangements to develop the land. He is thinking of seeking specific performance or
damages for breach of contract.
b. Discuss the role of equity in any one of the following circumstances:
i. Registered jual janji, or
ii. Lease, or
iii. Lien, or
iv. Tenancy, or
Substantiate your answer with the relevant provisions from the National Land Code
1965 and cases.
c. Chose the proper injunction to be applied. Explain your reasons and the
requirements that need to be fulfilled before your selected injunction is granted.
The people of the Republic of ABC toppled their President last year. When the new
government took over, they found out that the former President has embezzled
approximately US $50,0000, while he was in power. The Republic now wishes to
bring an action to recover the money.
d. Does it make any difference if a purchaser of the land only pays 10% as compared
to a purchaser who has paid the full purchase price? How does equity resolve such
e. ‘Equity looks at that as done which ought to be done.’ Explain the application of
this maxim to the case of Mountney v. Treharne  Ch. 135
f. Define equity in Islam and support with the verse from the Al-Quran which allows
the application of equity in Islam.
a. Can specific performance be granted in the following case? Give reasons for your
David agrees to sell 3 acres of his land to Johan. However, before the execution of
the contract, David sold the land to Sunyi Sepi Sdn. Bhd. at a higher price. Johan
wishes to seek specific performance against Sunyi Sepi Sdn. Bhd. as David is also
one of the directors of the company.
b. Will the Courts specifically enforce the following contracts? Give reasons for your
i. Bruce wants to enforce the agreement to marry his fiancée, Diana who wishes
to marry someone else.
ii. Ali, a contractor, refuses to continue to build a house for Datin Ahdimah.
iii. An invitation to dinner. (2 Marks)
c. Specific performance is an equitable relief and like all equitable relief, it is
discretionary in nature. Explain. (4 Marks)
a. Chose the proper injunction to be applied in the following situations. Explain your
reasons and the requirements to be fulfilled before your selected injunction is
i. Adly and Aida enter into an Agency Agreement verbally whereby Aida
agreed to sell electrical products produced by Adly’s company and
commission will be paid to her. The commission was never paid and Aida
wishes to bring an action against Adly. Particulars on the sales are not with
Aida but in Adly’s possession.
ii. Philly and Emma are neighbours. Their houses are situated nearby each other.
Philly decided to do some renovation to his house. Due to the construction
which began end of last year, Emma discovered a lot of cracks on the wall of
her house. She had informed Philly but her complaints were ignored. She
approaches you and asks you to represent her.
. (4 Marks)
iii. Mary instituted divorce proceedings against her husband. The divorce was
granted and an application was made for the distribution of their jointly
acquired property. Mary felt that her husband might have committed perjury
about his assets in the course of the proceedings. What can Mary do in order
to obtain the documents relating to her husband’s assets?
b. If there is a conflict between common law and equity in Malaysia, which prevails?
Support your answer by citing the relevant provision.
a. Amar negotiated to purchase a lot of land in Kelang. During the negotiations, Amar
was briefed on the location of the land and its status. He was told that there was an
old lady, Angamah, who is occupying one small corner of the land and the vendor
wishes to reserve the land for her. Amar agreed. However, when the new title was
issued, the Land Office did not exclude the portion belonging to Amar. Angamah
got angry and wishes to sue Amar for fraud. Amar tried to explain to her that it was
not his mistake. Now Amar wishes to rectify the error.
b. Discuss briefly the position of rescission of a contract under common law and
c. On 8 January 2003, Adham entered into a Sale and Purchase Agreement with Ong
Thai Hong to purchase a piece of land in Penang. Clause 5 of the Sale and
Purchase Agreement states that the Agreement shall be null and void if there is
refusal by the State Government to release the subject property from compulsory
Following the execution of the Sale and Purchase Agreement, there was an
exchange of correspondence between the parties. The correspondence dealt with the
question whether the subject property had been released from acquisition by the
Penang State Government. Mr. Ong took the position that no such release had taken
place and that the Sale and Purchase Agreement has expired. However, Adham
contended that the Sale and Purchase Agreement is still subsisting. Adham
instituted proceedings claiming specific performance of the Sale and Purchase
Agreement as there was no official refusal from the State Government.
An equitable assignment is one that does not fully comply with the statutory requirements
of s 4(3) of the Civil Law Act 1956. In Khaw Poh Chhuan v Ng Gaik Peng & Ors 
1 MLJ 761, Peh Swee Chin FCJ said in the Federal Court at p 775 as follows:
“ ... In any event, compliance with s 4(3) is not a pre-requisite to the
validity of an assignment, which is to be determined in the usual ways. Even
without complying with s 4(3), for example even without notice of the
assignment to such debtors, for the sake of argument, the assignment would
have been valid in equity in any event against the assignor.”
And further down in the same page his Lordship continued:
“... Section 4(3) has not made any alteration in the law of assignment; it
has merely made it easier for the assignee in one aspect in that the assignee
can sue in his own name without sometimes having to borrow the name of
the assignor or if the assignor is uncooperative, to join the assignor as a co-
a. Discuss the difference between Legal assignment and Equitable assignment.
b. Define what is an assignment. (2 Marks)
c. Cite an example of an assignment and explain it. (2 Marks)
d. What are the essential requirements for an equitable assignment? (3 Marks)
e. Why did the Privy Council in the case of Malayawata Steel Bhd. v. Govt. Of
Malaysia  1 MLJ 24 reverse the judgement of the lower courts?
a. Define what is estoppel and support your answer with the relevant provision and
case. (3 Marks)
b. What are the differences between Estoppel by Representation and Promissory
Estoppel? (3 Marks)
c. What is Proprietary Estoppel? Explain and support your answer with cases.
d. What were the problems with the common law that paved the way for the birth of
equity in England? Cite at least 2 main problems. (2 Marks)
e. Who is a Chancellor and what were his responsibilities or duties before 1873 in
England? (2 Marks)