Beruflich Dokumente
Kultur Dokumente
Identification of issue
Whether Daniel should pay compensation to the Government of Malaysia?
Apart from that, Section 4 of the Contracts (Amendment) Act 1976 provides
that the scholarship agreement shall not be invalidated on the ground that the scholar
is a minor or that such agreement such agreement lacks consideration. This can refer
to the case of University Malaya v. Lee Ming Chong [1986]. The fact was the
defendant was given a scholarship to study in Canada on the condition that he must
work for the University for two and a half years. Upon the defendant’s return, he left
the university contending that since he had not provided consideration, there was no
valid contract between them. The Federal Court held that there was sufficient
consideration as the university had paid the defendant’s. Furthermore, even if there
was no consideration, the agreement was regarded as valid by virtue of section 4 (C)
of the Contract (Amendment) Act 1976.
The amendment nullifies that the part of the decision in Gurcharan Singh v.
Government of Malaysia [1971] where it affects contracts between minors and an
‘appropriate authority’. The fact was Malaysia government gave Gurcharan Singh
scholarship for him to study at Malayan Teacher’s Training Institution. However, he
had to work for the government inconsideration for being a trainer as a teacher for 5
years. Gurcharan worked for 3 years and 10 months only. The contract was made
when he was still a minor. Malaysia government claimed the compensation for
$11,500. The court held that an infant is totally incompetent and incapable of entering
into a contract and there is no contract on which he can be sued. However, Section 5
of the Contracts (Amendment) Act 1976 provides that in the event that the scholar
were to breach the scholarship agreement, the scholar will be required to pay the full
sum named in the agreement to the appropriate authority and no deduction shall be
made from the named sum for any partial period of service performed by the scholar
upon completion of his course of study.
Concluding Advie
Daniel should pay back the compensation that amounted RM 90,000 to the
Government of Malaysia.