Contract

In the campaign of Tan Chiw Thoo v Tee Kim Kuay [1997] 2 MLJ 221, FC.,the Federal Court considered the distinction between adequateness of rumination and adequacy of friendliness in a compromise arranging. Peh Swee FCJ sing that: It must be remembered that sufficiency of rumination is different, in law, from the adequateness of consideration, though any dictionary whitethorn show both(pre token(a)) wrangle to bear the same meaning. In law, the romances will a groovy deal enquire into the sufficiency but non the adequacy of consideration, sufficiency in law is synonymous with validity in try for to consideration. The stain of adequacy of consideration under the Contracts bite appears to be similar to that under English law, that is, consideration need not be adequate. The application of this rule can be seen intelligibly in illustration (f) in Section 26 of the Contracts motivate 1950. A agrees to sell a horse worth RM1,000 for RM10. As combine to the conc ordance was freely given up. The compact is a contract notwithstanding the inadequateness of the consideration. In former(a) words, nominal consideration in an agreement is adequate. In the case of Guthrie Waugh Bhd v Malaippan Muthuchumaru [1972] 2 MLJ 62, FC.

,Gill FJ in the Federal Court verbalise that: It is unoriginal law that the administration is not concerned with the inadequacy of consideration. However, it may be an issue for the adequacy of the consideration in cases where the position is taken that there was no free consent given to the agreement. An agreement entered into without the free consent of one of the parties is by and large each leisu! reable or nullify. In such a case, the court may consider the issue of the adequacy of the consideration in determining whether there was free consent. This can be seen in Explanation 2 of Section 26 of Contracts Act 1950: An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper