Presentation PART C

8/3/2019 Presentation PART C

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PART C.

(a)

One year has elapsed since the marriage of Ahmad

and Siti. To date, Ahmad has not made any attempt

to transfer the apartment to Siti. Recently Siti was

pressured by her mother who wanted Ahmad to

fulfill his promise.

Is

Siti

entitled to enforce the above

promise?


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p

ISSUE :

Whether Ahmad is bound to hispromise to transfer the ownership the

apartment to Siti after marriage?


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INTRODUCTION :

The general rule is that an agreement withoutconsideration is void.

Contract arises upon executed consideration.

A consideration is executed when an act is performed

in return to a promise.


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LAWS :Consideration

Sec 2 (d) CA An act or abstinence or promise by the promisee

or any other person, as required by the promisorin return for his promises.

Exceptions to the general rule, which the contract is validand binding even though there is no consideration in theagreement

Sec 26 (a) CA : contract made on account of natural loveand affection

Valid and binding even though without consideration


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Validity of this contract is dependent upon the followingconditions :

1. It is expressed in writing (in reasonable form) Queck Poh Guan v Quick Awang

Held : The transfer of the land was a gift from thedeceased mother to the defendant on account of

natural love and affection2. It must be registered; if there is any law requiring

such registration

-Queck Poh Guan v Quick Awang3. It is made on account of natural love andaffection between parties standing in near relationto each other


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Sec 26 (a) provides one of the exceptional cases in

which consideration is dispensed with. It allows

any agreement expressed in writing and registered

under the law for the time being in force (if any)

for the registration for such document and is

made on account of natural love and affectionbetween the parties standing in a near relation.


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APPLICATION : In the situation between Ahmad and Siti, we can say

that they have established a near relationship as theyare married.

Ahmads promise to transfer the apartment to Siti wasmade on account of natural love and affection between

spouses. However, Sec 26 (a) CA requires Ahmad to express his

promise in writing, which may be in any reasonableform. The promise was made verbally, thus the

promise was not made into black and white. Furthermore, the law requires Ahmad to register his

promise that he made to Siti in order for it to be inforce. But, Ahmad did not register his promise.


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CONCLUSION : In order for Ahmad to be bounded to his promise to

transfer the ownership the apartment to Siti, he mustfulfill the three conditions stated in Sec 26 (a) CA.

Fulfilling only 1/3 of the conditions, it is safe to say thatSiti cannot enforce the promise that was made by

Ahmad.


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Part C.

(b)

Issue: Whether Ahmad is entitled to claim back his10% deposit from JHM Supplier and revokethe offer.

Law:1) Section 2(b) Contracts Act 1950.

According to this section, if the offeree (towhom the offer is made) agrees or accepts theoffer made by the offeror, there is acceptanceto such offer. Once there is an acceptance, anagreement between the parties is created. Acontract exists and it is binding upon the parties.


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2) Section 7 (a)

This section is about the acceptance must be absoluteand unqualified. The term absolute and unqualifiedmeans that, the acceptance must be made without anycondition or qualification. The acceptance must bemade exactly on the same term of the offer, withoutany modification.

Any modification of the terms of the offer amounts to

counter-offer- a rejection of the original offer, andtherefore, there is no valid acceptance exists, whichcan make the contract become binding.


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3) Case: Malayan Flour Mills Bhd v Saw Eng Chee(Administrator of the estate of Saw ChengChor, deceased) & Anor

- This case applied the principle deduced from theleading case,

- Hyde v Wrench.

- In this case, the plaintiffs managing director, TehLiang Teik had in fact taken upon himself not only tovary the term but also subject to matter of theoriginal offer.

- Dato Kang Hwee Gee viewed that, by doing so, he hadin fact made a counter-offer, the effect of which wasto divert the mind of Saw Eng Chee away from hisoriginal telex offer. This effect as if he, plaintiff hadwithdrawn the offer.


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Application:

JHM Supplier made the offer, and Ahmad acceptedthe offer when he deposited 10% of the purchaseprice into JHM Supplier account.

According to Section 2(b) CA 1950- Once there is anacceptance, an agreement between the parties iscreated. A contract exists and it is binding upon theparties.

- When Ahmad deposited the money, it shows that,there is an acceptance made.

- 10% of the purchase price can be considered asthe term in the agreement.


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JHM Supplier would like to replace Ahmads order withsimilar package from Dubai.- This shows that JHM supplier modified the

agreement.- Section 7(a) CA 1950 states that the acceptancemust be absolute and unqualified. Anymodification of the terms of the offer amounts tocounter-offer- a rejection of the original offer.And there is no valid acceptance exists.

As referred to case Malayan Flour Mills Bhd v Saw EngChee (Administrator of the estate of Saw Cheng Chor,

deceased) & Anor, the plaintiffs managing director,Teh Liang Teik had in fact taken upon himself not onlyto vary the term but also subject to matter of theoriginal offer. Dato Kang Hwee Gee viewed that, bydoing so, he had in fact made a counter-offer.


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Therefore, there is no valid acceptance exists, whichcan make the contract become binding.

Conclusion:

JHM Supplier is considered as making a new offer andthe previous offer made with Ahmad is void. Ahmad isentitled to get back his 10% deposit of the purchasing

price and to revoke his offer.


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PART C

(c)

ISSUE: Whether JHM is bound to fulfill the serviceof transportation of furniture to Ahmad.

LAW: PROVISION:

CA Section 2 (b) when the person to whom theproposal is made signifies his assent thereto, theproposal is said to be accepted: a proposal, whenaccepted, becomes a promise


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Section 2(b) ;

- according to this section, if the offeree agreesor accepts the offer made by the offeror, the reis acceptance to such offer.

- And once an acceptance is made, it creates anagreement. Thus, a contract exists and it isbinding/valid.

SECTION 7(a);

- Conditions: Acceptance must be ABSOLUTE AND

UNQUALIFIED.- Acceptance must be made without conditions or

qualifications


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- Acceptance must be made on the exact termwithout modifications

- Any modification made- counter offer

- (rejection of original offer)- NOT VALID

EXECPTION;- IF counter offer accepted/agreed upon by the

offeror, the terms in the original offer becomevoid and a new contract is formed.


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CASE;

> CASE: Hyde v Wrench (1840)

- 6th June- D offered to sell farm to P for $1000

- 8th June- P made counter offer ($950) (in reply)

- D said no

- 27th June- P accepts the original offer of D

- D refuse to follow back the original offer- P sued- contract made between them

HELD: No acceptance occurred. Ps letter (8th June)

has rejected the original offer. Counter offermade when P change the original price.


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APPLICATION;

It is clear enough that Ahmad needs to follow theterms given by JHM as he agreed to accept the newreplacement of the original offer

A new contract has been form as soon as Ahmad

agreed for the replacement. Therefore, modificationsmade has to be fulfilled and done

CONCLUSION; JHM is not bound to transport the furniture to Ahmad

because Ahmad accepted the new counter offer bythem which includes new conditions and terms

Presentation PART C

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