Chapter 3 - Extrinsic Evidence & Collateral Contract

Question 1

EXTRINSIC EVIDENCE & COLLATERAL CONTRACT

Overview

Answer 1

1) Whether EE admissible
2) General rule on collateral contract
3) Exception on collateral contract

Question 2

EXTRINSIC EVIDENCE & COLLATERAL CONTRACT

Whether EE admissible

Answer 2

1) The law - S.91 EA:
- The document itself must be produced to prove the contents.
2) Case - Tindok Besar Estates Sdn Bhd v Tinjar Co:

• Unless EE sought to be adduced falls within proviso S.92;
• It should not be allowed to be introduced.

Question 3

EXTRINSIC EVIDENCE & COLLATERAL CONTRACT

General rule on collateral contract

Answer 3

1) Applicability of S.92 - Chase Perdana Sdn Bhd v Md Afendi Hamdan:

• S.92 only applies if it relates to the matter which is silent in original document;
• and not inconsistent with the terms of the agreement;
• direct contradiction shall not be allowed.

2) Existence of CC - Industrial & Agricultural Distribution Sdn Bhd v Golden Sands Construction Sdn Bhd:

• CC may exist only if the main contract exists;
• It must not have the effect of substituting the main contract;
• Rights & obligations under collateral contract must relate to the main contract.

Question 4

EXTRINSIC EVIDENCE & COLLATERAL CONTRACT

Exception

Answer 4

Tan Swee Hoe v Ali Hussain Bros:

• CC can only contradict if it is given at the time of contracting;
• and it has induced the other party to enter the contract.