Saturday, March 6, 2010

My Contract Law Notes


Today, i prepared my business law's mid term. This is the summary notes i done for my revision.

First, i have to memorize the Essential Elements of Contract Law

1) Offer – Section 2a of Contract Act
a) Bilateral Offer
b) Unilateral Offer
Case: Carlill v. The Carbolic Smoke Ball Company Ltd

Invitation to Treat
a) Goods Displayed in the shop
Case: Pharmaceutical Society of Great Britain v. Boots Cash Chemist
Case: Fisher v. Bell
b) Advertisement in the newspaper
Case: Mazumder v. A.G. of Sarawak
Case: Partridge v. Crittenden
c) Auction sale
Case: Payne v. Cave
d) Tenders
Case: Spencer v. Harding

2) Acceptance – Section 2b of Contract Act
a) Acceptance must be absolute and unqualified – Section 7a of Contract Law
Case: Hyde v. Wrench (1840)

 Communication of Proposal – Section 4(1) of Contract Act 1950

 Revocation of Offer and Acceptance – Section 5 of Contracts Act
Case: Byrne v. Van Tienhoven

3) Intention to create legal relations

4) Consideration – Section 2d of Contract Act
a) Executory Consideration
Case: Wong Hon Leong v. Noorazman
b) Executed Consideration
c) Past Consideration
Case: Kepong Prospecting Ltd. v. Schmidt

 Without Consideration – Section 26 of Contract Act
Exception:
a) An agreement without consideration is valid if it is expressed in writing
b) Registered (if required under the law)
c) Is made on account of natural love and affection between parties standing in a near relation to each other.

 Inadequacy of Consideration – Explanation 2 of Section 26 of Contract Act
Case: Phang Swee Kim v. Beh I Hock

5) Certainty – Section 30 of Contract Act
Case: Karuppan Chetty v. Suah Thian

6) Capacity – Section 11 of Contract Law
a) Categories of persons lacking legal capacity to contract:
i) Minor
Case: Mohori Bibee v. Dharmodas Ghose
Case: Tan Hee Juan v. Teh Boon Keat
Exception:
(a) Contracts For Necesssaries
Case Government of Malaysia v. Gurcharan Singh
(b) Contracts Of Scholarship – Section 4 of Contracts (Amendment) Act 1976
(c) Contracts Of Insurance – Insurance Act 1963 (Revised 1972)
ii) Of unsound mind
iii) Specifically barred by law

7) Requirement of Legality – Section 24 of Contract Law / Section 66 of Contract Law
Status of Contract
a) Valid & Enforceable
b) Void Contract
c) Voidable Contract
8) Free Consent – Section 10 of Contract Act
Free Consent is said to be missing due to existence of 5 factors: (Section 14 of Contract Act)
a) Fraud
Case: Kheng Chwee Lian v. Wong Tak Thong
b) Misrepresentation – Section 18 of Contract Act
Case: With v. O’ Flanagan (1996)
i) Innocent Misrepresentation
ii) Negligent Misrepresentation
iii) Fraudulent Misrepresentation
c) Coercion – Section 15 of Contract Act
Case: Kesarmal v. Valiappa Chettiar
d) Undue influence – Section 16 of Contract Act
Case: Allcord v. Skinner (Apparent Authority)
e) Mistake – Section 21 of Contract Act / Section 23 of Contract Act

The second part of the Contract Law is Discharge of Contracts.
1. Discharge by performance
2. Discharge by frustration
3. Discharge by breach of contract

The last part of the notes is Remedies for Breach of Contracts.
1. Damages
Case: Associated Metal Smelters Ltd. v. Tham Chew Toh
2. Specific Performance
Case: Yeo Long Seng v. Lucky Part (Pty.) Ltd
3. Injunction
Case: Neoh Siew Eng
4. Quantum Meruit
Case: Planche v. Cloburn (1831)

Finally, i hope that this notes able to enhance my understand about Contract law and able to let me score high mark in the mid term test.
Prepared by,
Fong Yok Yan (1071120015)

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