Business Law

Topics: Contract, Contract law, Voidable Pages: 3 (1554 words) Published: November 1, 2014

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Pak Mak signed an agreement to transfer his apartment to his daughter, Aminah as a gift for her 21st birthday. Aminah did not pay money to her father for the apartment. This agreement was later registered at the land office. The issue here is whether the transfer of apartment from Pak Mak (father) to Aminah (daughter) is valid, void or voidable. Section 26 of the Contract Act 1950 provides that as a general rule, an agreement without consideration is void. Consideration is defined in section 2(d) of the said Act as : “ When at the desire of the promisor, the promisee or any other person has done or abstained from doing or promises to do or abstain from doing, something, such act or abstinence or promise is called consideration of the promise.’’ CITATION Cha06 \l 17417 (Seng, 2006)Section 26(a) of the said Act provides that an agreement made without consideration is void unless it is expressed in writing and registered under the law (if any) for the time being in force for the registration of such documents, and is made on account of natural love and affection between parties standing in a near relation to each other. In other words, an agreement made on account of natural love and affection is binding if the following requirements are present: It is expressed in writing; It is registered (if applicable); and The parties stand in a near relation to each other --- Tan Soh Sim, Chan Law Keong & Ors v Tan Saw Keow & Ors -A woman on her deathbed expressed her intention to leave all her properties to her four adopted children. The court held that the claims of the adopted children were not effective as it was contrary to Section 26(a) i.e. it was not in writing and there was no natural love and affection between parties standing in near relation to each other. CITATION Kam13 \l 17417 (Tim, 2013) Applying the above principles, as the transfer of Pak Mak’s apartment to his daughter , Aminah was is writing and registered at the Land Office; and, as he...

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LawNotes, 2008. Section 26 of Malaysian Contract Act, 1950. [Online] Available at: http://www.lawnotes.in/Section_26_of_Malaysian_Contracts_Act,_1950[Accessed 28 October 2014].
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