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Contract
Contract
CONTRACT
LESSON OUTLINE
INTRODUCTION
ELEMENTS OF A CONTRACT:
1. Offer
2. Acceptance
3. Consideration
4. Capacity
5. Intention
6. Free Consent
7. Certainty
8. Valid Object
INTRODUCTION
Contract defined by Sec. 2(h) - an agreement
enforceable by law is a contract
Specific Legislation - Contract Act 1950 - but English
law still applicable by virtue of Civil Law Act.
Function of contract:
ELEMENTS OF CONTRACT
1. Offer
Cases:
Boots Cash Chemist Ltd sale of poison under pharmacist
supervision
Majumder V. Attorney General of Sarawak advertisement
for the post of a medical officer
2. Acceptance
Termination of offer
4. Consideration
5. Certainty
The terms of an agreement cannot be vague but must
be certain.
If uncertain or incapable of being made certain - void.
Intentions of the parties will be frustrated because of
uncertainty and the court will usually not interfere
At common law - two aspects of uncertainty:
due to language used
failure to reach agreement on fundamental term of the
agreement
In Contract Act - uncertainty provided by Sec. 30 agreements,the meaning of which is not certain, or
capable of being made certain, are void.
Case:
- Karuppan Chetty v. Suah Thian - lease at $35.00 per
month as long as he likes
6. Capacity
PRIVITY OF CONTRACT
CONTENTS OF A CONTRACT
1. Express and Implied Terms
3. Exemption Clause
There are also some statutes which modify the effect of the
exemption clause to provide more protection to consumers.
Also - exemption clause cannot give benefit to third party nor
make another party liable
Free Consent
1. Coercion.
2. Undue Influence
Exist when the relations subsisting between the parties are such
that one of the parties is in the position to dominate the will of the
other and uses that position to obtain an unfair advantage over the
other.
Position to dominate
Use that position to obtain unfair advantage
3. Fraud
4. Misrepresentation.
To be actionable:
5. Mistake
Sec. 21 of the Contract Act - where both the parties under the
DISCHARGE OF CONTRACT
1.By Performance.
2. By Consent or Agreement.
3. By Impossibility / Frustration.
4. By Breach
Sec 40 - When a party to a contract has refused to perform,
Cases :
voidable rescinds it, the other thereto need not perform any
promise therein contained in which he is promisor. The party
rescinding a voidable contract shall, if he has received any
benefit thereunder from another party to such contract, restore
the benefit, so far as may be, to the person from whom it was
received.
Choo Yin Loo v. Visuvalingam
Ban Hong Joo Mine Ltd. V. Chen & Yap
REMEDIES
1.Rescission
2.Damages
3. Specific Relief.
4. Injunction.
An equitable remedy that can be varied or dissolved
Sec 50 of SRA provides for two types of injunctions:
1. Interim Injunction.
2. Perpetual Injunction.
Thats All
Folks!