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Law of Contract

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Law of Contract
Nur Izzati Husna Bt Muhd Zin, Siti Maryam Amani Bt Shahrul Nizam, Siti Adlina Bt Abdullah, Siti Nur Haifa By Ismail, Muhamad Syazwan B Abd Manap

QUESTION 1 The issue is whether the transfer of house is acceptable and valid under Sec 26 of CA 1950. The law applicable are Sec 26 of CA has stated that agreement made without consideration is void. According to Sec 2(d) of CA, consideration is an act or abstinence or promise by the promisee or any other person as required by the promisor in return for his promise. Literally, it means something that is given in return for something else. On the other hand, there was an exceptions under Sec 26 of CA which is an agreement without consideration is void unless the contract made on account of natural love and effection that is stated in Sec 26(a) of CA. There are several requirements under Sec 26(a) of CA which is the contract must be expressed in writting, must be registered if required by law and made on account of natural love and affection and between parties standing in near relation to each other. Sec 26 of CA further illustrate that ‘A’, for natural love and affection, promises to give his son ‘B’, RM1000. ‘A’ puts his promise to ‘B’ into writing and registers it under a law for the time being in force for the registration of such documents. This is contract. Additional, the meaning of the words ‘near relation’ varies from one social group to another as it depends on the customs and practice of such groups. For example, Case of Re Tan Soh Sim. The deceased, Tan Soh Sim, had three sisters. Their mother was firstly married to one Tan Ah Thai and had four children. When Tan Ah Thai died, she married one Khoo Kim Huat and had seven children. The Tan and Khoo children maintained social and friendly relations with one another. Tan Soh Sim married, but having no issue, adopted four children. The husband, one Chan, married a second wife, Tan Boey Kee. When Tan Soh Sim was on her death bed, to ill to make a will,

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