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VOID, VOIDABLE AND UNENFORCEABLE CONTRACT, ANIQ RUSYDI BIN TAELIP
263963 …
VOID, VOIDABLE AND UNENFORCEABLE CONTRACT
Section 10 (1) CA
All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
Section 14 CA defines free consent as Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation, and mistake
(a) coercion, as defined in section 15;
Section 15 CA “Coercion” is the committing, or threatening to commit any act forbidden by the Penal Code, or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement”.
CASE
Kesarmal a/l Letchman Das v Valiappa Chettiar (1954)
Chin Nam Bee Development v Tai Kim Choo (1988)
(b) undue influence, as defined in section 16;
Section 16(1) CA “A contract is said to be induced by undue influence where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other”.
CASE
Salwath Haneem v Hadjee Abdullah (1894)
Inche Noriah v Sheikh Allie bin Omar [1929]
Chait Singh v Budin bin Abdullah (1918)
Che Som bt Yip & Ors v. Maha Pte Ltd & Ors
Ragunath Prasad v Sarju Prasad [1924]
Datuk Jaginder Singh & Ors. v.Tara Rajaratnam
(c) fraud, as defined in section 17
Section 17 CA Include various acts committed by a arty to a contract which intent to deceive the other contracting party
1) The suggestion as to fact of that which is not true by one who does not belief it to be true
2) any such act as the law declares to be fraudulent
3) A promise made without any intention of performing it
4) Any other act to deceive
5) Concealment of fact
(d) misrepresentation, as defined in section 18
Section 18 (c) CA it refers to certain false statement made by a representator and which induces the other party to enter into a contract
CASE
Bisset v Wilkinson & Anor [1927] AC 177
Abdul Razak bin Datuk Abu Samah v Shah Alam Properties Sdn. Bhd 7 Anor Appeal [1999] 2 MLJ 500
Low Kon Fatt v Port Klang Golf Resort (M) Sdn. Bhd. [1998]6MLJ 448
Kluang Wood Products Sdn Bhd v Hong Leong Finance Bhd & Anor [1999] 1 MLJ 193
(e) mistake, subject to sections 21, 22 and 23.
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Section 2 (i) CA:
an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract;
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