Tutorial_3.2_-_Consideration.ppt

Issue what should pak mat do in order to ensure that

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Issue What should Pak Mat do in order to ensure that there is a valid contract. Law and Application On the fact, Minah will not be providing any consideration for the piece of land which her father is giving her. Define consideration (s2(d) Contract Act 1950) s26 Contract Act 1950-no consideration, no contract However, there are three exception to s26 Contract Act 1950 which are stated in s26(a), (b),(c) Contract Act 1950 The relevant one here is s26(a) Contract Act 1950 Thus, in order to ensure that there is a valid contract here,Pak Mat must fulfil the 3 conditions which are stated in s26(a) Contract Act, which are: (i)The transaction must be done in writing (ii)The transaction must be registered if necessary (iii)This transaction must be for love and affection between 2 people of near relation.Since this transaction is between father and daughter, this condition is fulfilled [ Re Tan Soh Sim (1951), MLJ 21] Conclusion Pak Mat must fulfil s26(a) Contract Act 1950 in order to ensure that .There is a valid contract.
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Question 3 C rented a house from D. The paint of the house was in bad condition. After C had finished painting the house, D was so pleased with the painting that he promised to pay C RM500 for the painting. Now D is refusing to pay. Advise C (15 marks)
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The act was done first voluntarily ( c painted the house first), promise was made later(Dpromised to pay RM500), this is past consideration Past Consideration is valid (s2(d) Contract Act 1950, s26(b) Contract Act 1950 and illustration(c) to s26) Thus, P must pay RM500
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  • Spring '14
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