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Elements of Contract - Coggle Diagram
Elements of Contract
Free consent
-
-Illegal contract if it is forceable
-Section 10(1) mentioned free consent
of parties competent to contract
Proposal / offer
-Oral/written as long as it is
not required to be written by law
-Definite expression/overt action
that begins the contract
-Must be clear & spelled out in specific
and certain terms (to what is being offered
& the conditions)
Capacity to contract
-In section 11, Contract Act 1950
everyone have the capacity to contract
(in terms of age & mind)
-Malaysia age of majority: 18 y.o.
Acceptance
-Made by one party that another party
is who create the contract
-Cannot be alter or modify
-Any modification needed the acceptance
a counter-offer (conditional acceptances),
by making this the offeree rejecting the offer
-Offerer can choose (act/word) to shows acceptance and bound by conditions
tendered by offeree
Consideration
-Expressly agreed by both parties to
the contract or expressly implied
by the terms of contract
-Invalid consideration: potential /
accidental benefit or detriment
-Must be explicit & sufficient (to whatever
applicable)
-Mutual promises are adequate & valid as
long as they are binding (applies to
conditional promise as well)
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