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LAND LAW IILAND LAW II
(JUAL JANJI)(JUAL JANJI)
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DefinitionDefinition
A sale of a promiseA sale of a promise
Conditional sale.Conditional sale.
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Origin of Jual JanjiOrigin of Jual Janji
Come into existence after theCome into existence after thecoming of Islam to the Tanahcoming of Islam to the Tanahela!"#to a$oid the practice ofela!"#to a$oid the practice of
"s"r!"s"r! In the earl! da!s the concept ofIn the earl! da!s the concept of
%transfer& in '"al 'an'i is onl! in%transfer& in '"al 'an'i is onl! inform of oral "nderstandingform of oral "nderstanding
eteen the creditor andeteen the creditor andorroer and no act"alorroer and no act"aldoc"mentation or registration ofdoc"mentation or registration ofan! doc"ments ta*es place.an! doc"ments ta*es place.
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Tengku Zahara v Che Yusuf Tengku Zahara v Che Yusuf
[1951] 17MLJ[1951] 17MLJ
+riggs J, -+riggs J, - TheThewhole purpose ofwhole purpose of
jual janji jual janji
transaction is totransaction is to provide a provide a procedure for procedure forsecuring a loan…securing a loan…Without infringingWithout infringing
the prohibition ofthe prohibition ofusury which isusury which isbinding on thebinding on theconscience of allconscience of allgood Muslimsgood Muslims..
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W.E Maxwell (The Law and Custom W.E Maxwell (The Law and Custom
of the Malay with Reference to theof the Malay with Reference to the
Tenure of Land) Tenure of Land)
““the jual janji (conditionalthe jual janji (conditionalsale), the only form ofsale), the only form of
hypothecation of landhypothecation of landnown to Malay law, is, innown to Malay law, is, in
principal incidents, !uite principal incidents, !uite
unlie our mortgage ofunlie our mortgage ofreal property"""real property""" ##
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Effect of NLC 1965 on JJEffect of NLC 1965 on JJ
No more oral agreement.No more oral agreement.
"t"al "nderstanding on onership"t"al "nderstanding on onershipof land d"ring loan period cannot eof land d"ring loan period cannot e
practised an!more.practised an!more.
oner m"st compl! ith theoner m"st compl! ith themandatory requirement formandator
y requirement forregistrationr
egistration of land titles.of land titles.
Dealings ere reg"lated and J"al Jan'iDealings ere reg"lated and J"al Jan'ihas tohas to conform to the proceduresconform to the
proceduresof transfer of landof transfer of land..
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/0W1/0W1
The land ill e transferred The land ill e transferred
into the name of the lenderinto the name of the lenderand a e$ent"all! aand a e$ent"all! a collateralcollateralagreementagreement ill e exec"tedill e exec"tedhere! it is stated that thehere! it is stated that the
lender is oliged to transferlender is oliged to transferthe propert! to the orroerthe propert! to the orroer"pon f"ll repa!ment of the"pon f"ll repa!ment of theloan.loan.
77
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WHAT ISWHAT IS
COLLATERALCOLLATERALAGREEMENT?AGREEMENT?
88
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A A collateral agreementcollateral agreement is anis an
agreementagreement where thewhere the
consideration is the entry intoconsideration is the entry into
anotheranother agreementagreement,,
SoSo this agreementthis agreement co-existsco-exists
side by side with theside by side with the mainmain
agreementagreement..
99
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Elements of Jual JanjiElements of Jual Janji
LenderLender
+orroer2+orroer2
Loan2Loan2 Land as a sec"rit!2Land as a sec"rit!2
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!" #$ "!%&S'!" #$ "!%&S'
3.3.A loanA loan
granted !granted !Lender toLender to
thethe+orroer+orroer
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4. As a consideration4. As a consideration
to the loan5to the loan5
+orroer transfer+orroer transferland elonging toland elonging to
the +orroer to thethe +orroer to theLenderLender
1212
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6.6. With a condition orWith a condition orpromise ! the Lender topromise ! the Lender to
retransfer to the +orroerretransfer to the +orroer(collateral agreement)(collateral agreement)
"pon f"ll and 7nal"pon f"ll and 7nal
settlement of the loan !settlement of the loan !the +orroer ithin anthe +orroer ithin an
agreed d"rationagreed d"ration
1313
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8. If +orroer fail to8. If +orroer fail to
ma*e pa!ment ithinma*e pa!ment ithin
the agreed time5 thethe agreed time5 thetransaction is declaredtransaction is declared
as an asol"te sale i.e.as an asol"te sale i.e.
$ual %utus $ual %utus..
1414
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9. Lender ta*es9. Lender ta*es
proceeds ofproceeds ofthe landthe landd"ring thed"ring theloan periodloan period
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(( is(( is notnot
governgovern by theby the)*+ 1965)*+ 1965
1616
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So when (( case broht toSo when (( case broht to
cort, the cort can interrete ((cort, the cort can interrete ((
by re/errin to one o/ theby re/errin to one o/ the
interretations beowinterretations beow
1717
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Judicial Opinions/Views Judicial Opinions/Views
A.A. Strict interpretationStrict interpretation :"rel! contract of sale:"rel! contract of sale
here time is of essencehere time is of essence
exceptionsexceptions
B.B. Liberal interpretationLiberal interpretation ;
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A. A.STRICT INTERPRTATIONSTRICT INTERPRTATION
Purely Contract - time is ofPurely Contract - time is of
essenceessence
Leading case,Leading case,
&j 'bdul ahman v &assan &j 'bdul ahman v &assan
(*+) ' -.*(*+) ' -.*““it was not a securityit was not a security
transaction or mortgage astransaction or mortgage as
the only form of mortgage inthe only form of mortgage in
Malaysia is charge or lien"Malaysia is charge or lien"
/ince it was a contract, the/ince it was a contract, the
claim was statute barred0 claim was statute barred0
http://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppthttp://e/Hj%20Abdul%20Rahman%20v%20Hassan.ppt
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2020
Cont…Cont…
Cases s"pported /' Ad"lCases s"pported /' Ad"l
=ahman=ahman
A >anapath! :illa! $ JosephA >anapath! :illa! $ Joseph
Chong (3?@3) 4LJ 33 (BC)Chong (3?@3) 4LJ 33 (BC)
#prac of JJ ! non ala! com"n#prac of JJ ! non ala! com"n
Wong ee Leng $ arasath!Wong ee Leng $ arasath!
Ammal 3?98E LJ 383 CAAmmal 3?98E LJ 383 CAIrahim $ Ad"llah (3?F8)Irahim $ Ad"llah (3?F8)
LJ 36?LJ 36?
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Cont…Cont…
If the +orroer failed toIf the +orroer failed to
compl! ith the terms ofcompl! ith the terms of
the contract5 the co"rt illthe contract5 the co"rt ill
not assist him to in$o*e thenot assist him to in$o*e theterms of the agreement i.e.terms of the agreement i.e.
to otain retransfer of theto otain retransfer of the
landland
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Exceptions to strict interp:Exceptions to strict interp:
3.3. ;xtension of time;xtension of time
Ismail /' ;mong $ La"Ismail /' ;mong $ La"
>ong /an (3?G) 4LJ 436>ong /an (3?G) 4LJ 436
Ad"l /amid +in aad $Ad"l /amid +in aad $
Ali!asa* Ismail 3???EAli!asa* Ismail 3???E
3A= 3G93A= 3G9
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Cont…Cont…
4.4. ;$ading pa!ment of loan;$ading pa!ment of loan
Ahmad +in 0mar $ /'Ahmad +in 0mar $ /'
alleh +in hai*h 0smanalleh +in hai*h 0sman
3?@E 3LJ 66@3?@E 3LJ 66@
/ati'ah +te =e'a $/ati'ah +te =e'a $
Ad"llah aad 4GG8E 4Ad"llah aad 4GG8E 4
A= FF9A= FF9
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B.B.LIBERAL INTERPRETATIONLIBERAL INTERPRETATION
Equitable PrinciplesEquitable Principles
The collateral agreement for The collateral agreement for
a retransfer in aa retransfer in a jual janji jual janji transaction is in the nat"retransaction is in the nat"re
of an e
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Cont…Cont…
Haaco +in Leai J"soh $ Haaco +in Leai J"soh $
/amisah +t aad 3?9GE/amisah +t aad 3?9GE
LJ 499LJ 499
Naa Din $ ohamedNaa Din $ ohamed
harif 3?96E 3? LJ 34harif 3?96E 3? LJ 34
/ali'ah $ orad 3?4E 4/ali'ah $ orad 3?4E 4
LJ 3FFLJ 3FF
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Recent Development inRecent Development in
MalaysiaMalaysia
The ala!sian co"rts The ala!sian co"rtsrel"ctant to de$iate fromrel"ctant to de$iate fromthe case of /a'i Ad"lthe case of /a'i Ad"l
=ahman.=ahman./ati'ah te =e'a $/ati'ah te =e'a $
Ad"llah aad (4GG8) 4Ad"llah aad (4GG8) 4
A= FF9A= FF9
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