Contract

In the causal agency of Tan Chiw Thoo v Tee Kim Kuay [1997] 2 MLJ 221, FC.,the Federal Court considered the distinction between adequateness of observation and adequateness of friendliness in a compromise arranging. Peh Swee FCJ spill the beans that: It must be remembered that sufficiency of friendship is different, in law, from the adequateness of consideration, though any dictionary whitethorn show both(pre token(a)) nomenclature to bear the same meaning. In law, the romances will a capacious deal enquire into the sufficiency but non the adequacy of consideration, sufficiency in law is synonymous with validity in get word to consideration. The stain of adequacy of consideration under the Contracts bite appears to be similar to that under English law, that is, consideration need non be adequate. The application of this rule can be seen clearly in illustration (f) in Section 26 of the Contracts crop 1950. A agrees to sell a horse worth RM1,000 for RM10. As assume to the reason was freely given up. The understanding is a contract notwithstanding the insufficiency of the consideration. In other(a) words, nominal consideration in an agreement is adequate. In the case of Guthrie Waugh Bhd v Malaippan Muthuchumaru [1972] 2 MLJ 62, FC.

,Gill FJ in the Federal Court say that: It is unoriginal law that the appeal is not concerned with the inadequacy of consideration. However, it may be an issue for the adequacy of the consideration in cases where the position is taken that there was no free consent given to the agreement. An agreement entered into without the free consent of one of the parties is primarily each l! eisureable or forefend. In such a case, the court may consider the issue of the adequacy of the consideration in determining whether there was free consent. This can be seen in Explanation 2 of Section 26 of Contracts Act 1950: An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper