Without Prejudice Letter

1
Ahmad was sued by Bank Senang Pinjam Bhd. for RM1 Miliion for loan given by the said bank to him. He send a letter admitting that he owes the bank the said amount. The letter contained a phrase, “that nothing herein shall be admitted in court as evidence”. He also intructed his solictior to file a defence to denied any liabilities. He did that just to buy sometimes for him to get sufficient fun to pay the loan. After along negotiation, with the bank he agreed to pay the bank by three instalments. Last month he failed to make payment for the first settlement instalment. The bank proceeded with the civil suit and wishes to tender the letter of admission as evidence in court. Advise Ahmad as to the admissibility of the said letter. 10 marks

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Transcript of Without Prejudice Letter

Ahmad was sued by Bank Senang Pinjam Bhd. for RM1 Miliion for loan given by the said bank to him. He send a letter admitting that he owes the bank the said amount. The letter contained a phrase, that nothing herein shall be admitted in court as evidence. He also intructed his solictior to file a defence to denied any liabilities. He did that just to buy sometimes for him to get sufficient fun to pay the loan. After along negotiation, with the bank he agreed to pay the bank by three instalments.

Last month he failed to make payment for the first settlement instalment. The bank proceeded with the civil suit and wishes to tender the letter of admission as evidence in court.

Advise Ahmad as to the admissibility of the said letter. 10 marks