For example a father for natural love and affection promises to give his son RM

For example a father for natural love and affection

This preview shows page 10 - 13 out of 14 pages.

- For example, a father, for natural love and affection, promises to give his son RM 1000. If the father puts his promise to the son in writing and registers it under law for the time being in force for the registration of such documents, there is a contract. - In Re Tan Soh Sim (1951) , it was held that the nearest of relationship depends on the type or group of people to which the parties belong and the circumstances of the family concerned. Here, a Chinese adopted son was held to be closer to the family of his adoptive father rather than to the family of his adoptive mother. (f) Payment of lesser sum is satisfaction of obligation to pay larger sum - In English Law, as seem in the case of Foakes v Beer [1984] , it is established that payment of a lesser sum cannot be a valid satisfaction of the whole debt unless there is some fresh
Image of page 10
consideration given in return for the creditor accepting the lesser sum, for example, by paying a lesser sum at an earlier date. - However, in Malaysia, a promisee may dispense with or remit, wholly or in part, the performance of the promise made to him: s.64 . The promisee can also validly agree to accept as consideration something other than that which was originally promised. - In Kerpa Singh v Bariam Singh (FC) [1966] , the judgment creditor had accepted a cheque of a smaller amount that the amount owed to him as full settlement. After cashing the cheque he sued to recover the balance. The FC held that since the creditor had accepted the smaller sum by chasing the cheque, he was taken to have agreed to discharge the debtor from any further liability. (g) Composition agreement - If a debtor makes an agreement with all his creditors to pay a smaller composition amount for full settlement, then payment of that smaller amount to any creditor who demands payment would discharge his debt. - For example, in illustrating s.64 (e) , A owes B RM 2,000/-, and is also indebted to other creditors. A makes an arrangement with his creditors, including B, to pay them a composition of fifty cents in the ringgit upon their respective demands. Payment to B of RM 1,000/- is a discharge of B’s demand. 4. Privity of Contract - In English Law, consideration can come from the TP, but only a party to a contract can sue or be sued on that contract. - In Malaysia, the Contract Act is silent. However, in Kepong Prospecting Ltd v Schmidt [1968] , it was held that the English principle of privity of contract is also applicable in Malaysia. Article of “ Circumventing the Privity Rule in Malaysia” by Tan Pei Meng Abstract:
Image of page 11
- the doctrine of privity and its application - the difficulties face in applying the doctrine in relation to contract made for the 3rd party’s benefit - To examine a number of common law mechanisms that had been utilised by the courts to circumvent the privity rule and determine whether the present legal position is satisfactory.
Image of page 12
Image of page 13

You've reached the end of your free preview.

Want to read all 14 pages?

  • Winter '17
  • Daniel

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors