Contract

In the brass of Tan Chiw Thoo v Tee Kim Kuay [1997] 2 MLJ 221, FC.,the Federal Court considered the distinction between adequateness of rumination and sufficiency of friendliness in a compromise arranging. Peh Swee FCJ evince that: It must be remembered that sufficiency of comity is different, in law, from the sufficiency of consideration, though any dictionary whitethorn show both(pre token(a)) address to bear the same meaning. In law, the romances will a prominent deal enquire into the sufficiency but non the adequacy of consideration, sufficiency in law is synonymous with validity in cypher 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 non be adequate. The application of this rule can be seen intelligibly in illustration (f) in Section 26 of the Contracts scrap 1950. A agrees to sell a horse worth RM1,000 for RM10. As go for to the system was freely given up. The arrangement is a contract notwithstanding the inadequateness of the consideration. In separate 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 utter that: It is unoriginal law that the judiciary 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 largely each leisureable ! or revoke. 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

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