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Unformatted text preview: Topics outline: I. Is there a contract between Allan and the bus conductor?-Issue: -Rule: -Application: -Conclusion: II. Did Allan breach the contract?-Issue: -Rule: -Application: -Conclusion: III. What are the remedies?-Issue: -Rule: -Application: -Conclusion: - 1 - I. Is there a contract between Allan and the bus conductor? Issue : Whether there is a contract between Allan and the bus conductor? Rules: Firstly, Consideration is an essential part in establishing an valid contract. The doctrine of consideration require that: there must be an exchange between the parties, involving either a promise for promise or the promise given in exchange must have value; and “a contract without consideration is void.” Next, consideration is that “anything which has already been done before a promise in return is given is past consideration which, as a general rule, is not sufficient to make the promise binding Section 26b of the Contracts Act 1950 clarifies an exception for an agreement that made without consideration is not void: “An agreement made without consideration is void, unless it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do “. The illustration c from section 26, Contracts Act 1950: “A find B’s purse and gives it to him. B promises to give A RM50. This is a contract.” Application: According to the general rule of Malaysian law system, a contract without...
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This note was uploaded on 07/29/2011 for the course BUS 444 taught by Professor Lynn during the Spring '11 term at Keuka.
- Spring '11