44 242 Exception to the general rule of consideration Under these situations

44 242 exception to the general rule of consideration

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44
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2.4.2 Exception to the general rule of consideration. Under these situations, absence of consideration will not make the agreement void:- i) Sec. 26(a) Agreements related to natural love & affection Re Tan Soh Sim & Ors v Tan Saw Keow [1951] MLJ 21 A woman on her deathbed expressed her intention to leave all her properties to her four adopted children. The court held that the claims of the adopted children were not effective as it was contrary to Section 26(a) i.e. it was not in writing and there was no natural love and affection between parties standing in near relation to each other 45
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ii) Sec. 26(b) Agreement to compensate for a past voluntary act. Illustration: Ali, your neighbour had taken care of your cat while you were away. When you returned, you promised to give Ali RM200. In the event that you fail to give Ali RM200, Ali can bring an action against you. The promise that you gave is valid, eventhough Ali did not give any consideration after you have made the promise. 46
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iii) Sec. 26 (b) Agreement to compensate for an act the promisor was legally compelled to do. Promisee voluntarily done an act The act done was actually an act that the promisor himself was legally bound to do; and The agreement must be to compensate the promisee wholly or partly for what the promisee had done. Illustration: Looking after your bestfriend’s infant son. iv) Sec. 26(c) Agreement to pay a Statute Barred debt. A debt that cannot be recovered through legal action as the time has lapsed i.e. 6 years. There is a contract if there is a fresh promise by the debtor and it is made in writing & signed by both parties. 47
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2.5 CERTAINTY OF CONTRACT The terms of a contract must be certain and not vague. An agreement which is not certain or is not capable of being made certain is void. S.30 of C.A Karuppan Chetty V. Suah Thian The parties agreed to lease of RM35 per month “for as long as he likes.” Held: the contract was void. There was no certainty as to the time frame of the lease. 48
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2.6 LEGAL CAPACITY Sec. 11- age of majority according to the law, who is of sound mind and is not disqualified from contracting by any law. The general rule is that all contracts entered by a minor are void. The contractual incapacity of a minor is regarded as a protection of the minor against the consequences of its own actions and presumed lack of judgment in such a case. Exceptions- Minors are bound by these contract that they have entered into. i) Necessaries – food, shelter, medical services ii) Scholarship – Any contract or agreement between the appropriate authority and any person, with respect to any scholarship, award, loan, sponsorship etc. 49
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The Govt. of Msia v Gurcharan Singh & Ors. Whether the contract between the parties was void because the defendant was a minor at the time the contract was entered?
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