BLE Law of Contrat

7/23/2019 BLE Law of Contrat

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ELEMENTS SECTION # DEFINITION RULES

Contract Section 2 (h) CA

Proposal or ofer 2(a)

3. Obligation by inference

4. Legally capable of acceptance

Agreement enforceable by law. Can be inwritten, oral or implied by action.

. Contract by deed!Speciality contract.2. "irtten3. #$idenced in writing

%eadine&& of the per&on who ma'e& the oerto create a legal relation and to be bond bythe law, whene$er the term& of the propo&alare agreed pon the acceptance. (propo&al*able to con$ert into agreement ponacceptance)

. Can be made to anyone and e$eryone

2. #+pre&& or implied (S)- Can be orally, in written, by condct orcombination


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Acceptance

. /&t be clear, certain and commnnicated- 0rop&al m&t not be $age, in de1nite orncertain(impo&&ible to hold there wa& anagreement btw partie&)

. /&t be dierent from in$itation to treateg! di&play of good& in &hop window-actioner& in$itation for bid&-circlar& and ad$erti&ement&-tender&-&pply of information

-&tatement of intention

. S2(b) . An agreement by the acceptor to the termcontained in the propo&al made by thepropo&er, with that acceptance, bindingcontract e+i&t. Silence i& not an acceptance.

. Acceptance m&t be ab&olte andnali1ed - S(a)-Acceptance m&t be made on the &ame terma& pro$ided in the propo&al and there m&tnot be any $ariation and modi1cation.

2. /&t be commnicated - S3- Can bewritten orally5by condct5combine method.-S(b)- the acceptance may be e+pre&&ed in&ome &al and re&onable manner nle&& thepropo&al pre&cribe& a manner in which it i& tobe accepted.

3. Commnication of acceptance may bewai$ed- S6-0erformance of the condition of the propo&al

i& an acceptance, therefore promi&ee neednot to commnicate to the propo&er that hehad accept the propo&al (nilateral contract)


3/16

Consideration S2 . m&t ha$e $a'e in the eye of law

4. "hen commnication of acceptance i&completed- S4(2)(a), 0o&tal rle!-the acceptance i& complete5eecti$e a& &oon

a& the acceptor po&t hi& letter of acceptancethogh i& not yet reach the propo&er.

A& a general rle, an agreement witotcon&ideration i& $oid. 7he word con&iderationi& de1ned in S2(d)-when there i& an oer,there i& an acceptance, there m&t be acon&ideration to accept which callpromi&e(promi&ee5acceptor m&t gi$e&omething in retrn for the promi&e bypromi&or5oeror


4/16

2. #+ectory, e+ected and pa&tcon&ideration

3. Adeacy of con&iderationS2(2)-adeacy of con&ideration i&immaterial(cannot merely $oid beca&e of it)

4. Con&ideration need not be adeate bt&8cientS2(f)- A& long a& the con&ideration ha& &ome

economic $ale then the con&ideration i&&8cient and $alid.


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CASES RESULTS

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Carlil $ Carbolic Smo'e 9all Co Ltd (63)-Co. ad$eti&ed they wold oer :;; to any who con&methe ball for 1+ed period of time bt &till attac'ed by in &age.Lady won (dpt duit beb)

. Oral contract! Syed ?aafar bin Syed @brahim $. /a /eharSingh 7ra$el > 7or& Sdn 9hd -0lainti entered into an oral agreement with the defendantB&/anaging irector that he will pro$ide the pa&&enger& andthed efendant will pro$ide tic'et& and $i&a& to Syed ?aafar

2. Contract by condct! Clar'e $. #arl of nra$en 6-2 yatch& entered clb race, Clar'e damaged #arlB& yatch byfoling. 9oth agreed to ndertoo' payment of damageca&ed by foling.

! Oral contract is valid beca&e theagreement created a binding contract.Syed Jaafar won

2. Contract " cond$ct is validbeca&e by entering the race on the clbterm& the competitor& entered into acontract with each other on tho&e term&D con&eently Earl Dunraven had topay.

7hornton $. Shoe Lane 0ar' Ltd 7hornton par'ed hi& car at at Shoe Lane 0ar'ing bt did notnotice the warning at the entrance E0ar' at yor ri&'E &ign.#$entally hi& car damaged, he &ed SL0.

7he ofer is %adewhen the proprietor

of the machine hold& it ot a&being ready to recei$e money. 7heacceptanceta'e& place when thec&tomer p$ts &is %oneinto the &lot.SLP won

A8n Credit (/) Sdn 9hd $. Gap Gen Hi 64-A8n made hire prcha&e agreement with Gap and &ed Gapfor pending payment&.

A(ree%ent is void ab initio (noeectfrom the beginning) &ince lac' ofoer and acceptance beca&e theagreement &igned did follow I0 act, S4 ().


6/16

Heltho&e $. 9indley 62 Silence i& no acceptance.

. Io Ah Jim $. 0aya 7rbong #&tate Sdn 9hd 6-7here wa& a written agreement to prcha&e a part ofdefendantK& land in 0enang to the ma+imm e+tent of abot acre& or le&&. 7he contract i& made for 2 year& bt byth year, 0aya nable contine to pay to Io.

2. So Gong $. G=in bte Abdllah Io G=in

. Agreement i& $alid, 0aya ha& to payfor the damage& &ince the aagreementfall within 2 year&, 0aya brea' theagrement in th year.

2. Contract i& in$alid de to the fact that

the term& of the propo&al were not clearor certaain.

0harmacetical Society of Mreat 9ritain $. 9oot& Ca&h

Chemi&t (Sothern) Ltd 3.- an owner of a &elf &er$ice &hop &elling drg&. 0 charged for &elling li&ted poi&on withot &per$i&ion ofregi&tered pharmaci&t.

7here i& no contract bt only in$itation totreat. 7he defendant wa& merely in$itingthe c&tomer to choo&e item& from the&hel$e& and there i& no &ale aected

ntil the c&tomerB& oer to by i&accepted by the regi&tered pharmaci&t atthe conter by accepting the pricemoney.

Iyde $. "rench 64;"rench oer& to &ell hi& e&tate to Iyde for :;;;, bt Iydeconter-propo&ed with :; bt "rench di&agree. Iydeagree& for :;;; later bt "rench ref&e to &ell.

No acceptance had occrred &ince theconter propo&al made by Iydecon&titte& the reection tp the originalpropo&al.

Carlil $ Carbolic Smo'e 9all Co Ltd (63)-Co. ad$eti&ed they wold oer :;; to any who con&methe ball for 1+ed period of time bt &till attac'ed by in


7/16

. Acceptor po&t hi& letter of acceptance, the propo&al i&bond to perform hi& obligation e$en thogh he did not 'nowabot the acceptance. S42aa-@gniti& $. 9ell 3! 9ell made a propo&al to &ell hi& land to@gnati&. 7he oer open ntil 2; Ag 2. @gn&ti& replied

on Ag, bt only recei$ed by 9ell on 2 Ag.

2. S4(2)(a)(b)- the acceptor po&t hi& letter of acceptance, hei& not bond to perform hi& obligation ntil hi& letter ofacceptance reach the propo&er. #g. A propo&e to &ell hi& carto 9 by letter, 9 accept the propo&al by letter, A i& bondwith the obligation e$en withot recei$ing the letter, bt 9 i&bond ONL) when the A recei$ed the letter.

Commnication of oer wa& completedwhen acceptance wa& po&t on Ag2 e$en thogh 9ell did not 'nowabot it.

ni$er&ity of /alaya $. Lee /ing Chong 6-al'i&ahnya, ni$er&ity of /alaya appointed the Lee to a&cholar&hip to pr&e &tdie&. agreement &tated that Leeha$e to &er$e the ni$er&ity 1$e year& min if fail to fl1ll, Leeha& to pay 1ne %/;;;. Lee breached the term andcontended that the &cholar&hip agreement wa& $oid a& it wa&made withot con&ideration

it wa& clear that there wa& con&ideration

on the part of the ni$er&ity. 7he factthat the ni$er&ity appointed him to the&cholar&hip wa& the con&ideration on it&part fo rLeeK& promi&e to &er$e it for 1$eyear& after completing the cor&e, whichhe wold not be able to ta'e withot theappointment of the ni$er&ity


8/16

tran&action remain& in the ftre (promi&e in retrn for apromi&e in ftre-J /rge& $. Nadaraah 6- Nadaraah pe&tered/rge& to &ell the ho&e to him. /rge& wrote piece ofagreement to &ell the ho&e to Nadaraah for :2;;; withinthe 3 month from the date of agreement. /rge&contended there wa& no con&ideration for the oer to &elland the agreement wa& $oid for want of the con&ideration.

2. #+ected con&ideration- doing an act -an oer of rewardfor an act.-A oer& %/;; to whom retrn hi& car. 9 retrn AB& car inaccordance with the oer. 7herefore, 9 act a& e+ectedcon&ideration.

3. 0a&t con&ideration-Something wholly performed beforema'ing of the promi&e. 3 condition&! act m&t done onpromi&or ree&t,act to be remnerated either by paymentof con1rmant of &ome bene1t, and m&t be legally enformedand promi&ed in ad$anced.-Jepong 0ro&pecting Ltd $. Schmidt -Schmidt wa&con&lting engineer, he help formation of the Jepong andwa& appointed a& /, in agreement co. agree to pay P ofthe $ale of all the iron &old which con&idered a&con&ideration of the &er$ice rendered by Schmidt on behalfof Jepong before it& formation, ofter incorporation and forftre &er$ice. @& it a $alid con&ideration e$en thogh thewere pa&tQQQ

. Agreement wa& a ca&e of e+ectorycon&ideration.

2. 9 will recei$e the money if he&cce&&flly retrned AB& car.

3. @t wa& a $aled con&ideration andSchmidt wa& entitled to claim the amt.

0hang Swee Jim $. 9eh @hoc' 4-9eh agreed to tran&fer land to 0hang on payment of :;; btthe worth more than that. So, 9eh ref&e to honor thepromi&e and claimt promi&e wa& nenfoceable.

Agreement i& $alid de to adeacy ofcon&ideration beca&e the con&ent wa&freely gi$en by 9eh. Althogh thecon&ideration wa& inadeate.

Chappel > Co Ltd $. Ne&tle Co Ltd ;7o Ne&tle choc bar, they oer a record for &hiling and ;

pence pl& 3 wrapper from penny choc bar. "hetherchocolate wrapper& formed a part of con&iderationQ

Ne&tlRK& contention that aciring anddeli$ering the wrapper& wa& merely acondition which ga$e the ali1cation to

prcha&e and wa&nKt part of thecon&ideration.


9/16

RE*OCATION CASES

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3. Hailre of acceptor to fll1ll condition precedence

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. %eection

/alayan Hlor /ill& 9hd $. Saw #ng Chee

2. Lap&e of time S(b)

-0rop&al can be re$o'ed by the lap&e of the timepre&cribe in the propo&al for it& acceptance. @f there i&no time pre&cribe, by lap&e of rea&onable time.

%am&gate ictoria Iotel Co $. /onteHiore 6/onte1ore oered to by %am&gateB& co chare byletter dated 6 ?ne 64. Co only replied on 23No$ 64, bt /onte1ore ref&ed to ta'e the&hare.

Aberfoyle 0lantation Ltd $. Jhaw 9ian Cheng ;

-0artie& agree& to &ell and by plantation, theprcha&e i& conditional on the $endor obtainingthe renewal of the lea&e&. nable to fl1ll thecondition, the agreement &hall become nll and$oid.

4. eath of the party-@t i& important that the acceptor 'now& abot the factof the death or mental di&order of the propo&er. @f theacceptance i& made withot the 'nowledge of thedeath or the mental di&order of the propo&er then it i&a good acceptance.


10/16

. /erger

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. %e$ocate-/&t be made before acceptance.- /&t be commnicated by notice to other partyS(a).- /&tbe broght to the mind of the promi&ee5oerer

0o&tal %le!.9yrne $ 7ieno$en 66;-%e$ocation of propo&al i& made by po&t, there$ocation i& only eecti$e when it come& to the'nowledge of the acceptor, and not at the timewhen the letter of re$ocation i& po&ted

2. ic'in&on& $. odd&(6)-%e$ocation of propo&al need to be commnicatedby third party who i& acting on behalf of thepropo&er a& the agent.

S (2)-Acceptance may be re$o'ed at any time beforecomm of acceptance i& complete again&t the acceptorbt not afterward&. nmore (Conte&& Of) $. Ale+ander 63;

-7he letter of acceptance and re$ocation letter(&ent by e+pre&&), recei$ed &imltaneo&ly.


11/16

E+CEPTIONS,S-. a(ree%ent /it&o$tconsideration0void "$t t&ere are e1ceptions on

a(ree%ent %ade. on accont of natral lo$e and aection-S2(a) contract $alid if it e+pre&&ed in writing,regi&tered nder e+i&ting law, the partie& &tand in anear relation to each other.

%e 7an Soh Sim Ca&e ,-@n thi& ca&e, a woman on her deathbed e+pre&&edher intention to lea$e all her propertie& to her foradopted children.


12/16

2. Agreement to compen&ate pa&t $olntary actS2(b)-con&ideration i& $alid if promi&ee ha& done&ome $olntary act on hi& own for the promi&or and&b&eently the promi&or promi&e to compen&ate thepromi&ee for the act, then the promi&e i& enforceable.

-Jepong 0ro&pecting Ltd $. Schmidt -Schmidtwa& con&lting engineer, he help formation of theJepong and wa& appointed a& /, in agreementco. agree to pay P of the $ale of all the iron&old which con&idered a& con&ideration of the&er$ice rendered

3. Agreement to pay debt barred by limitation of lawS2(c)-the promi&or i& liable to pay pre$io& debtwhich the creditor cant reco$er throgh legal actionde to the time limited by &tatte if the followingcondition ari&ed!-debtor ma'e a fre&h promi&e to pay the debt.-promi&e i& made in writting and &igned by the per&onto be charged5hi& athori&ed agent.

ni$er&ity of /alaya $. Lee /ing Chong 6-al'i&ahnya, ni$er&ity of /alaya appointed theLee to a &cholar&hip to pr&e &tdie&. agreement&tated that Lee ha$e to &er$e the ni$er&ity 1$eyear& min if fail to fl1ll, Lee ha& to pay 1ne%/;;;. Lee breached the term and contendedthat the &cholar&hip agreement wa& $oid a& it wa&made withot con&ideration


13/16

RESULTS

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7he tele+ oer wa& nothing bt an in$itation ottreat in $iew of the condition impo&ed.Accecptance by the /alayan did not con&titte a$alid cotract. @n addition to accept the oerbefore the deadline, /alayan m&t fl1ll all theterm& and condition in the tele+ oer bt theyfailed. So, Saw ha& e$ery right to treat there wa&no $alid contract between partie&.

/onte1oreB& ref&al wa& &ti1ed beca&e coB&

delay in acceptance the oer within re&onabletime. ?ne to No$emebr i& not con&ideredrea&onable time.

7he contract become nll and $oid beca&e

Jhaw did not renew the lea&e&.


14/16

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%e$ocation completed.

2. efendant wa& free to re$o'e hi& oer at anytime beca&e there wa& no con&ideration gi$enby the claimant of the promi&e, to 'eep the oeropen.


15/16

7he cort held that the claim& of the adoptedchildren were not eecti$e a& it wa& contrary to

Section 2(a) - that it wa& not in writing, andthere wa& no natral lo$e and aection betweenpartie& &tanding in near relation to each other,&ince the for children were adopted and did notha$e natral relation& (blood tie&) to thatwoman.


16/16

@t wa& a $aled con&ideration and Schmidt wa&entitled to claim the amt.

it wa& clear that there wa& con&ideration on the

part of the ni$er&ity. 7he fact that theni$er&ity appointed him to the &cholar&hip wa&the con&ideration on it& part fo rLeeK& promi&e to&er$e it for 1$e year& after completing thecor&e, which he wold not be able to ta'ewithot the appointment of the ni$er&ity

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BLE Law of Contrat