Question Business Law
( 23 ) Az oil Co. agrees to supply a quantity of oil to CRT Distributors Bhd at RM24.00 per barrel or RM26.00 per barrel
Discuss the legal status of such agreement.
Az oil Co. agree to supply a quantity of oil to CRT Distributors Bhd at RM24.00 per barrel or RM26.00 per barrel. This is a contract and the contract is a legal, because Az oil Co agree to supply oil per barrel to CRT Distributors Bhd.
Consideration need not be adequate
Section 26 “ an agreement is not void merely because the consideration is inadequate.
Section 26 illustration (f) “ A agree to supply a quantity of oil at RM24.00 or Rm26.00. the agreement is a contract notusthstanding the inadequacy of the consideration.
Case : Phang Swee Kim v. Beh I Hock (1964) MLJ 383.
The appellant agreed to buy a land for from the respondent for the price of $500, although the land was worth much more.
The respondent later refuse to honour the promise, arguing that the promise was unenforceable because of the inadequacy of consideration.
FC held : The consideration was adequate because the respondent has agreed to transfer the land to the appellant for $500. There was a valid contract.
( 24 ) Section 10 (1) of the Contracts Act 1950 Provides that:
“all agreement are contract if they are made with the free consent of parties competent to contract.”
Discuss when an agreement is said to be made free consent and what are the effect on the agreement if it is made without free consent. i. Free consent it means an act of assenting to an offer. According to section 13, "Tow or more persons are said to consent when they agree upon the same thing in the same thing in same sense." Thus, consent involves identity of minds in respect of the subject matter of the contract. In English Law, this is called 'consensus-ad-idem'. Contract act sec 14, is the which has been obtained by the free will of the parties. No pressure in the form of coercion fraud undue influence, mistake and misrepresentation in
Discuss the legal status of such agreement.
Az oil Co. agree to supply a quantity of oil to CRT Distributors Bhd at RM24.00 per barrel or RM26.00 per barrel. This is a contract and the contract is a legal, because Az oil Co agree to supply oil per barrel to CRT Distributors Bhd.
Consideration need not be adequate
Section 26 “ an agreement is not void merely because the consideration is inadequate.
Section 26 illustration (f) “ A agree to supply a quantity of oil at RM24.00 or Rm26.00. the agreement is a contract notusthstanding the inadequacy of the consideration.
Case : Phang Swee Kim v. Beh I Hock (1964) MLJ 383.
The appellant agreed to buy a land for from the respondent for the price of $500, although the land was worth much more.
The respondent later refuse to honour the promise, arguing that the promise was unenforceable because of the inadequacy of consideration.
FC held : The consideration was adequate because the respondent has agreed to transfer the land to the appellant for $500. There was a valid contract.
( 24 ) Section 10 (1) of the Contracts Act 1950 Provides that:
“all agreement are contract if they are made with the free consent of parties competent to contract.”
Discuss when an agreement is said to be made free consent and what are the effect on the agreement if it is made without free consent. i. Free consent it means an act of assenting to an offer. According to section 13, "Tow or more persons are said to consent when they agree upon the same thing in the same thing in same sense." Thus, consent involves identity of minds in respect of the subject matter of the contract. In English Law, this is called 'consensus-ad-idem'. Contract act sec 14, is the which has been obtained by the free will of the parties. No pressure in the form of coercion fraud undue influence, mistake and misrepresentation in