7/3/2017 CONSENT VOIDABLE CONTRACTS §.10(1) of CA: ‘Agreements are contrac f they are made by the {ree consent ofthe partes. 5.14 of CA: Consent is not free when caused by: Coercion (S18) ‘Undue Influence ($16) Fraud ($ 17) ->Misrepresentation (S 16) Mistake (S 21, 22 & 23) Effects of S. 14CA Effect of $19(1): .when consent to an agreement is caused by coercion, fraud or rmisrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused COERCION $15 OF CA: To commit any act forbidden by the Penal Code, or unlawful detention or threatening to detain, any property, to the prejudice of another person, in order to cause to enter into an agreement. Kanhaya Lal v National Bank of India Kesarmal s/o Letchman Das v Valiappa Chettiar ‘ Elements of Coercion Lord Denning: i) Economic duress ii) Inequality of bargaining power Pao On v Lau Yon Ping: recognition of economic duress Undue Influence The etn ew fee pry ovr ater Ah Pr Prd 01) “eit ere enc ate sy ie ‘Maken d pete tor ty wren ane71312017 Remedy for undue influence. Contract is voidable at the option of the innocent party (S 20 CA) & recover losses under S 66 of CA. Cases Che Som bt Yip & ors v. Maha Pte Lid Ros Darus v Mansur Hy Saad & anor Salwath Haneem v Hadjee Abdulah Datuk Jagindor Singh & ors v Tara Rajaratnam Inche Norian v Shaik Allo Bin Omar FRAUD 8.17 CA: Fraud includes: Suggestion of facts which is untrue ‘Concealment of the actual fact _-Promise made without intenton to perform Any actto deceive ‘Any actor omission declared by law to bo fraudulent Silence under Fraud Explanation toS 17 CA: Mere silence as to facts tkely to affect the vwillagness of a person to enter into a contracts. rot fraud. Unless its duty of the person keeping silent to speak ‘Both civ or criminal fraud can be heard in Court Misrepresentation S 18 CA; Misrepresentation includes: >A postive assertion, whichis not tue, tough he eteves tio be tue Any breach of eu; without sent to deceive nding nocenty, archer pat to ener ito “greemantto make a maiske.n 9 the subject maior of the agreement Basic difference between misrep and fraud; in fraud the person making the claim does not believe the fact to be true while in misrep; he believes it to be true. MISTAKE ‘S21 CA: Where both partes to an agreement are {er mst 08 o mater of fot essential tothe ‘Sereement the agrecmertis vo. ‘Two majreerents of $21 Essential tothe agreement Mutua mistake Chop Ngah Seng vEsmal & Ahmad Bos (Chan Yoke Lain v Pact Orion Co San the71312017 ‘contact ot voldable because & was caused bya Misch as to any low in fore in Malay. (29.4.8 B onores io a contract beleving that parolee ‘fom ofrancacon not atowed by the lw the conact is visable 823A ‘contacts ot voldable because was caused by one ofthe pares to being under a mistake aso mater of fact Tampin v mes VOID AND ILLEGAL CONTRACTS S 24 CA: The consideration or object of ‘agreement is unlawful if > itis forbidden by law > itwould defeat any law > itis fraudulent >It involves or imply injury to another person or the person's property » itis immoral or against public policy Contracts offending the Law $24 (a) & (b) ‘Manang Lim Native v Manang Selaman ‘Sababumi Sdn Bhd v Datuk Yap Pak Leong Contract that are Fraudulent 'S 24 (c): fraudulent objector consideration istration (1) Contracts injurious to the person or property of another 'S 24 (d): involves or imply injury to another Contracts that are immoral and against public policy: S 24 (e) Inno $26 rato) ‘xanga Oty ido Pubic Potey orc pid pe see Carrs tinge ears ite Cora apa th rest rae! fot sy of arog Restraint of Trade S 28 CA: Every agreement by which anyone is restrained from exercising a lawful profession, trade, or business is void. Wrigleswarthy Wilson Anthony Exception t- incase of goodwil soldi fom carying on simi businoss within speci local its Excopton 2- agreement between partners xr to iescuton Exception 3- during conteuanoe of parnership