Iqbal and Syafidie have been friends since they studied in UniMAP together. Now they are in the business of providing IT services to their clients. Syafidie tried to secure an IT tender from Penang Port Sdn Bhd worth RM300,000 and seek Iqbal assistance. Iqbal then provided consultancy work to Syafidie in his business. When Syafidie asked Iqbal if he owed Iqbal anything for his services, Iqbal said: “My fee is RM20,000 but until you get that big contract, I know you cannot afford that. Perhaps we should just wait and see what happens?” Syafidie wanted to give Iqbal something now. Iqbal thought about it and said that if Syafidie paid university fees of RM9,000 for his nephew, Aslam, he would not look for any more from him as regards the balance. Syafidie agreed that he would pay Aslam’s fees. The next day Syafidie contacted Aslam explaining what had been agreed. Aslam was delighted and gave him all the relevant details about his account. One week later, Iqbal phoned Syafidie asking if he had paid Aslam’s college fees. When he said he would be paying them at the end of the month, Iqbal said “I am glad you have not done it yet. I have just discovered that Aslam refused to continue his study at UniMAP. I want nothing more to do with him. I heard you got that contract, you need to pay the RM20,000 to me.” Based on Iqbal’s promise not to charge the M20,000 fee, Syafidie had just paid RM16,000 towards a van for his business. Examine Syafidie’s position under the law of contract.
Iqbal and Syafidie have been friends since they studied in UniMAP together. Now
they are in the business of providing IT services to their clients. Syafidie tried to secure an IT
tender from Penang Port Sdn Bhd worth RM300,000 and seek Iqbal assistance. Iqbal then
provided consultancy work to Syafidie in his business. When Syafidie asked Iqbal if he owed
Iqbal anything for his services, Iqbal said: “My fee is RM20,000 but until you get that big
contract, I know you cannot afford that. Perhaps we should just wait and see what happens?”
Syafidie wanted to give Iqbal something now. Iqbal thought about it and said that if Syafidie
paid university fees of RM9,000 for his nephew, Aslam, he would not look for any more
from him as regards the balance. Syafidie agreed that he would pay Aslam’s fees. The next
day Syafidie contacted Aslam explaining what had been agreed. Aslam was delighted and
gave him all the relevant details about his account. One week later, Iqbal phoned Syafidie
asking if he had paid Aslam’s college fees. When he said he would be paying them at the end
of the month, Iqbal said “I am glad you have not done it yet. I have just discovered that
Aslam refused to continue his study at UniMAP. I want nothing more to do with him. I heard
you got that contract, you need to pay the RM20,000 to me.” Based on Iqbal’s promise not to
charge the M20,000 fee, Syafidie had just paid RM16,000 towards a van for his business.
Examine Syafidie’s position under the law of contract.
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