provided for void contracts it also covered voidable contracts that had been

Provided for void contracts it also covered voidable

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provided for void contracts, it also covered voidable contracts that had been rescinded. This rule was applied in the Malaysian case of Yong Mok His v United Malay States Sugar Industries Ltd (FC) [1967] where the Federal Court gave the rational that a voidable contract when rescinded becomes void and that s.66 also applies to voidable contracts that come void.
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( because when you have a voidable contract, you choose rescission ab initio, which goes back to the beginning of the contract, this situation is exactly like the void contract where there is not even a contract exists at the first place ) Compensation for innocent party who rightly rescinds… s.76 provides that an innocent party who rightly rescinds a contract is entitled to compensation for any damage that he has sustained through the non-fulfilment of the contract. (This sounds like if s. 76 allows “rescission termination”, which to claim for damages that originally you only can obtain when the contract is breached. Then why bother rescission ab initio? ) However, in Indian case, Haji Ahmad v Abdul Ghani [1937] , the HC held that innocent party cannot claim compensation under s.76 if the contract is rescinded on grounds of fraud or misrepresentation as they are not cases of non-fulfilment of the contract. (therefore this case simply means that when you rescind a contract, its always go back to the beginning of the contract, as such no right to claim damages under s.76 which is for breach situations. ) In Shah Alam Properties , if an innocent party who rightly rescinds a contract is entitled to claim damages under other possible means such as law of tort, but not under contract. Where the innocent party affirms the contract s. 19(1) provides that the innocent party can choose to affirm the contract and claim for compensation. s.19(2) provides that if a contract is procured by fraud or misrepresentation, the innocent party may choose to continue and insist on specific performance and be put in the same position as if the representations made had been true. There is no specific mention of coercion and undue influence, there is definitely do not have a right or wrong answer. Its either you choose a literal approach or purposive approach to interpret the statute. If literal approach, then there is no remedy; whereas a purposive approach, the statute is meant to cover coercion and undue influence under s.19(1) . Coercion/ Duress
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English common law recognises 3 types of duress (i.e coercion) which makes a contract voidable. (a) The first is duress to a person where there is actual or threatened violence or imprisonment to a person to coerce him to enter into a contract, then the contract is voidable. (b) The second type is a threat of damage to a person’s goods. In Skeate v Beale [1840] , it was held that the unlawful detention of another person’s goods did not amount to duress but this decision was criticised and was not follow in subsequent cases such as The Siboen and The Sibotre [1976] .
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