Tutorial_3.4_-_Free_Consent_Jan_15.ppt

Law and application on the facts the contract favours

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Law and Application On the facts, the contract favours Fuad and not Ahmad Chong. Thus, it may be presumed that there may be undue influence under s16(2) Contracts Act 1950 because Ahmad Chong was ill when he sold the property to Fuad. If so, the contract is voidable (s20 Contract Act 1950) However, this presumption is rebuttable. If Fuad can show that the contract was entered into freely by Ahmad Chong, then there will be no undue influence and the contract will not be voidable Conclusion If Faud is not able to rebut the presumption, then the contract is voidable. If so, Ahmad Chong is advised to terminate the contract.
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Question 2 Munni agreed to sell a stolen Mercedes to Karen for RM100,000. Karen promised to pay within 3 days. Three days have passed by, but Karen still has not paid him. He wishes to sue Karen for the payment. Advise Munni. (15 marks)
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Issue Will Munni be able to successfully sue Karen for payment. Law and application On the facts, Munni sold a stolen car to Karen. The consideration here is illegal.
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