LAW087 – INTRODUCTION TO LAW III

Tutorial Question 8 (20 marks)

Question (20 marks)

• Mary promised to give her brothers RM500 monthly on the condition that their mother transfer some land to her. Their mother agreed and transferred the land to Mary. Mary however failed to fulfill her promise and her brothers sued her on the promise. Advise Mary

Mary

Brothers

Mother

RM500

LAND

SUED!

Answer

• ISSUE– Whether Mary’s brothers have the right to sue

her for breach of contract

Mary

RM500SUED!

Brothers

Answer

• LAW– DEFINITION OF PROPOSAL

• Section 2(a) of Contract Act 1950 : When one person signifies to another his willingness to abstain from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal.

A proposal made by one party to another party, with the intention that, other party would accept his

proposal

Answer

• LAW– AGREEMENT WITHOUT CONSIDERATION IS

VOID• Section 26 of Contract Act 1950 : An

agreement made without consideration is void unless….

Answer

• LAW– DEFINITION OF CONSIDERATION

• Section 2(d) of Contract Act 1950 : When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise.

Consideration is an act or abstinence or promise by the promisee or any other person as required by the promisor in return for his promise. Literally, it means something that is given in return for something else

Answer

• LAW– CONSIDERATION CAN MOVE FROM THE

PROMISEE OR OTHER PERSON• Section 2(d) of Contract Act: When at the

desire of the promisor, the promisee or any other person…….

• Case : Venkata Chinnaya v. Verikatara’ma’ya, in this case the sister was liable on the promise on the ground that there was a valid consideration for the promise even though it did not move from the brothers

Answer

• APPLICATION– Mary, brothers, mother

Mary

Brothers

Mother

RM500

LAND

PROPOSER

PROMISEE

Answer

• APPLICATION– Consideration is an act or abstinence or

promise by the promisee (Mary’s brother) or any other person (their mother) as required by the promisor (Mary) in return for her promise (to give RM500 monthly).

Mary

Brothers

Mother

RM500

LAND

When something is given in return for something else, it is clearly shows that there is consideration that

makes the agreement valid

RM500 – Consideration for her mother to give Mary

some land

LAND – Consideration for Mary to give RM500

monthly to her brothers

Answer

• APPLICATION– In this case only the mother and Mary provide

consideration whereas the brothers did not provide any consideration.

As accordance to Section 2(d) of Contract Act 1950 and the case of Venkata Chinnaya v. Verikatarama’ya’, consideration

can move from the promisee or any other person.

Even though the brothers did not provide any consideration, the agreement is still valid

Answer

• CONCLUSION– Mary hereby advised to pay RM500 monthly to

her brother. This is due to there is no doubt in the validity of the agreement made by the persons involved.

Her brothers have a right to sue her for breach of contract if she fails to give them RM500 monthly.

THE END

Answer

• LAW– CONSIDERATION OR OBJECT OF AN

AGREEMENT MUST BE LAWFUL• Section 24 of Contract Act 1950 : The

consideration or object of an agreement is lawful unless…..

E.g. of Unlawful Consideration :1. It is forbidden by a law2. If it is permitted it would defeat any law3. Fraudulent4. Implies injury to the person or property5. immoral

Answer

• APPLICATION– There is no exception under Section 26 of

Contract Act 1950 that make the agreement valid.

As accordance to Section 26 of Contract Act, An agreement made without consideration is void unless (3 exceptions) it is in

writing and registered, a promise to compensate something done and a promise to pay a debt barred by limitation law