CONSIDERATION Flashcards
THE CONTRACT ACT 1950 2(D)
WHEN AT THE DESIRE OF THE PROMISOR, THE PROMISEE HAS DONE OR ABSTAINED FROM DOING SOMETHING SUCH ACTS OR PROMISE IS CALLED CONSIDERATION FOR THE PROMISE.
IN THE CASE OF UM VVLEE MING CHONG (1986)
UM OFFERED DEFENDANT A SCHOLARSHIP CANADIAN GOVERNMENT UNDER DEGREE OF MASTER OF BUSINESS ADMIN AND ACCOUNTING THE AGREEMENT PROVIDED HE NEED TO WORK WITH UM NOT LESS THAN 5 YEARS AND HE BREACH THE TERM AND LIABLE HIM TO PAY SUM OF RM 5000. HE SAID THE AGREEMENT IS VOID BECAUSE WO CONSIDERATION. WAN HAMZAH SCJ STATED IT WAS CLEAR THAT THERES CONSIDERATION ON THE PART OF UNIVERSITY HELD THAT HE NEED TO SERVE THE COMPANY FOR 5 YEARS AFTER FINISHED THE COURSE.
THE GENERAL RULES
AGREEMENT WO CONSIDERATION IS VOID
AGREEMENT WO CONSIDERATION
1) AN ANGREEMENT MADE BY NATURAL LOVE AND AFFECTION
THE CONTRACT ACT 1950 SECTION 26(A)
IT IS EXPRESSED IN WRITTING AND REGISTERED UNDER THE LAW FOR THE TIME BEING IN FORCE FOR THE REGISTERATION OF THE DOCUMENT AND IS ON MADE OF NATURAL LOVE AND AFFECTION BETWEEN PARTIES STANDING IN NEAR RELATION TO EACH OTHER.
IN THE CASE RE TAN SOH SING (1951) MLJ 21
WHO IS MARRIED AND ADOPTED 4 CHILDREN. AS HER DEATHBED TOO ILL TO MAKE A WILL. SISTER AND BROTHER SIGNED A DOCUMENT THAT GIVE THE ESTATE TO ADOPTED CHILD. THE COURT STATE THE ACT IS NOT VALID FOR ADOPTED CHILD AS IT VIOLATED THE ACT. THE COURT HELD THAT THEY ARE LACKING OF FEELING (NATURAL) AND NEARNESS SO ITS NOT A CONTRACT.
IN THE CASE QUICK POH GUAN AND QUECK AWANG (1998)
IDRIS J STATED THAT THERES NO PRESUMPTION OF NATURAL LOVE AND AFFECTION FROM MOTHER TO CHILD. THE COURT FOUND THAT THE TRANSFER OF 1/3 OF PORTION OF LAND IS A GIVE OF MOTHER TO SON AS HER LOVE AND AFFECTION FEELINGS
IN THE CASE OF TANG MENG HOCK AND TANG MENG SENG (2010)
STATED THAT THERE THE PHRASE LOVE AND AFFCECTION MUST BE LINKED W REQUIREMENT STANDING IN NEAR RELATION. IN THIS CASE BOTH OF THEM IS BIOLOGICAL BROTHER AND THEY CLEARLY STANDING IN NEAR RELATION BETWEEN EACH OTHER.
AGREEMENT WO CONSIDERATION
2) AGREEMENT TO COMPENSATE A PAST VOLUNTARILY ACT (SUKARELA)
THE CONTRACT ACT 1950 SECTION 26 (B)
“IT IS A PROMISE TO COMPENSATE WHOLLY OR A PART. A PERSON WHO VOLUNTARILY DONE SOMETHING FOR THE PROMISOR”
AGREEMENT WO CONSIDERATION
3) AGREEMENT TO COMPENSATE AN ACT WHICH THE PROMISOR WAS LEGALLY COMPELLABLE TO DO
4) TO PAY STATUTE BARRED DEBT
SECTION 26(C) OF THE CA 1950
“IT IS PROMISE MADE IN WRITEN AND SIGNED BY THE PERSON WHO CHARGED THEREWITH, OR BY A AGENT GENERALLY OR SPECIALLY AUTHORIZED IN THAT BEHALF, PAY WHOLLY OR PARTLY OF THE DEBT WHICH CREDITOR MIGHT FORCE THE PAYMENT BUT FOR THE LAW FOR THE LIMITATION OF SUITS”
