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LAW OF CONTRACT - Coggle Diagram
LAW OF CONTRACT
CAPACITY
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Sect. 10 of CA
Sect. 11 of CA
definition
OFFER
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Sect. 2(a) of CA 1950
Carlill v Carbolic Smoke Ball Co.
A person proposes smtg to another party with the intention that his proposal would be accepted.
Condition
Communication of offer
Sect. 3 of CA
Complete proposal
Sect. 4(1) of CA
Invitation to treat (ITT)
Ex: Job ads, auction, display of goods
Pharmaceutical Society of Great Britain v Boots Cash Chemist Ltd (Southern) Ltd.
Revocation of offer
Sect. 5(1) of CA
Complete only when [Sect. 6 of CA]
it was made before the offeree accepted the offer
Letter; before the letter is sent
ACCEPTANCE
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A party agrees to the proposal made by the offeror to him
Sect. 2(b) of CA 1950
Condition
Absolute & unqualified [Sect. 7(a) of CA]
Hyde v Wrench
Expressed in usual & reasonable manner [Sect. 7(b) of CA]
Mode
Silence does not amount to an acceptance
Felthouse v Bindley
Communication of acceptance
Sect. 3 of CA
Complete communication of acceptance
Sect. 4(2) of CA
Postal rule
Sect. 4(2)(a)(b) of CA
Ignatius v Bell
Revocation of acceptance
Sect. 5(2) of CA
at any time before the communication of acceptance is complete
Sect. 4(3)(a)(b)
ACCEPTOR; when it is put in the course of transmission to the proposer
PROPOSER; when it comes to his knowledge
LETTER; before the offeror receive the AL
CERTAINTY
INTENTION TO CREATE LEGAL RELATIONS
CONSIDERATION
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A promise by the promisee/any other person as required by the promisor in return for his promise
Sect.2(d) of CA
became void if none (Sect. 26 of CA)
Rules governing consideration
Consideration must be lawful [Sect.24 of CA]
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it is forbidden by law
it is of such a nature that, if permitted, it would defeat any law
it is fraudulent
it involves or implies injury to the person or property of another
the court regards it as immoral or opposed to public policy
Adequacy of consideration [Sect.26 Expl 2]
Ex: A agrees to sell a horse worth RM1,000 for RM10. A's consent to the agreement was freely given. The agreement is a contract notwithstanding the inadequacy of the consideration.
Phang Swee Kim v Beh I Hock
Consideration does not come from the promisee [Sect. 2(d) of CA]
Venkata Chinnaya v. Verikatara Maya
FREE CONSENT