Date post: | 30-Nov-2014 |
Category: |
Law |
Upload: | maliza-eza |
View: | 536 times |
Download: | 5 times |
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