BBL 2614 Business Law
Dr. Abbas Hardani
Trimester 3, 2013/2014
Case Study: Daniel & Sara
Assignment Group member’s name
No | Name | Student ID |
1. | Fiona Chieng Jin-Hua (Leader) | 1112702358 |
2. | Lee Yee Zheng | 1112700722 |
3. | Ng Kai Ling | 1112700962 |
4. | Daniel Chong Kwang Chian | 1112700284 |
5. | Yang Wei Wen | 1121115505 |
6. | Vatchala A/P Subramanyam | 1112701707 |
Introduction of Contract law in Malaysia
The context of law may be defined as a legally binding agreement between two parties or, in the words of Sir Frederick Pollock, a promise or set of promises which the law will enforce. The agreement will create rights and obligations ...view middle of the document...
This simply mean when the offeree accepted the proposal from the offeror. There are 5 revocation of offer and acceptance which are when rejected by the offeree, when the offeree made a counter-offer, on the death of either the offeror or the offeree before the acceptance, by non-acceptance within the time stipulated for acceptance and lastly when revoked before acceptance.
Besides that, an intention to create legal relation is when both parties had a genuine intention to create legal relations which has legal implication. Fourth, the consideration is defined under Section 26 provided that an agreement without consideration is void. The consideration is merely the a things that has monetary value in a bargain which can be measurable in terms of some economic gain or loss. The consideration must be sufficient but need not to be adequate. Lastly is capacity, under Section 11 of Contract Act 1950, every person is competent to contract as long as they are age of majority according to Malaysia law of 16 and who is of sound mind and is not disqualified from contracting by any law.
A contract is not enforceable if its object is considered to be illegal or against public policy. In many jurisdictions contracts predicated upon lotteries, dog races, horse races, or other forms of gambling would be considered illegal contracts. When entering into agreement, the parties must be free consent to contract. The free consent as provided in Section 10(1) “All agreements are contracts if they are made by the free consent of parties competent to contract...” Under Section 14, consent must be free and not caused by coercion, as defined in section 15, undue influence, as defined in section 16, fraud, as defined in section 17, misrepresentation, as defined in section 18 and mistake, subject to sections 21, 22 and 23.
Coercion is described in Section 15 of the Contracts Act 1950 as the “the committing, or threatening to commit any act forbidden by the Penal Code, or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement”. Undue influence in Section 16 of Contract Act 1950 is said to exist when “the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other”. Section 17 of the Contracts Act 1950 explains that fraud refers to acts committed by a party to a contract with the intent to deceive the other contracting party. Misrepresentation would refer to untrue made by a representor and that induce the other to enter into a contract. Mistake under the Contract Act 1950 includes a mistake as to a matter of fact (by one or both parties) and mistake as to any law in force or not in force in Malaysia. The terms and conditions on the agreement must be clear and certain because an uncertain agreement is...