Commercial law mgm 3351
Download
1 / 234

COMMERCIAL LAW MGM 3351 - PowerPoint PPT Presentation


  • 107 Views
  • Uploaded on

COMMERCIAL LAW MGM 3351. DR SUHAIMI AB RAHMAN DEPARTMENT OF MANAGEMENT AND MARKETING FACULTY OF ECONOMICS AND MANAGEMENT UPM LABORATORY OF POLICY AND MANAGEMENT HALAL PRODUCTS RESEARCH INSTITUTE UPM Tel: 89467623 / 89417344 email: [email protected] WHAT IS LAW?.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' COMMERCIAL LAW MGM 3351' - xandy


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Commercial law mgm 3351

COMMERCIAL LAW MGM 3351

DR SUHAIMI AB RAHMAN

DEPARTMENT OF MANAGEMENT AND MARKETING

FACULTY OF ECONOMICS AND MANAGEMENT

UPM

LABORATORY OF POLICY AND MANAGEMENT

HALAL PRODUCTS RESEARCH INSTITUTE

UPM

Tel: 89467623 / 89417344

email: [email protected]


What is law
WHAT IS LAW?

LAW IS A SET OF RULES THAT GOVERN AND REGULATE HUMAN BEHAVIOUR


Justice
JUSTICE

JUSTICE IS AN ABSTRACT IDEA OF RIGHT AND WRONG, FAIRNESS AND EQUALITY


JUSTICE

ETHICS

LAW

MORALITY


Malaysian legal sources
MALAYSIAN LEGAL SOURCES

  • WRITTEN LAW

  • UNWRITTEN LAW


Written law
WRITTEN LAW

  • FEDERAL CONSTITUTION

  • FEDERAL LEGISLATION

  • STATE LEGISLATION

  • SUBSIDIARY LEGISLATION


Federal constitution
FEDERAL CONSTITUTION

  • SUPREME LAW OF THE LAND

  • PRESCRIBES THE RELATIONSHIP BETWEEN STATE AND FEDERAL


Ninth schedule
NINTH SCHEDULE

  • LIST I :- FEDERAL LIST

  • LIST II :- STATE LIST

  • LIST III :- CONCURENT LIST


Federal legislation
FEDERAL LEGISLATION

  • LAWS MADE BY THE PARLIAMENT

  • BEFORE INDEPENDENT ALL FEDERAL LEGISLATIONS WERE KNOWN AS ORDINACES


THE PROCESS OF MAKING RWU POLICY INTO AN ACT OF PARLIAMENT

POLICY

CABINET PAPER

MINISTER WILL BRING THE PAPER

TO THE CABINET

CABINET MEETING

APPROVAL FROM THE CABINET

AG WILL PREPARE A

DRAFT TO BE TABLED

IN PARLIAMENT

  • APPROVAL FROM THE PARLIAMENT

  • (LEGISLATIVE PROCESS)

  • HOUSE OF REPRESENTATIVE

  • HOUSE OF SENATE

  • THE KING

GAZZETTED



State legislation
STATE LEGISLATION

  • LAW MADE BY THE STATE

  • KNOW AS ENACTMENT EXCEPT SARAWAK


Subsidiary legislation
SUBSIDIARY LEGISLATION

  • RULES

  • REGULATIONS

  • BY-LAWS

  • ORDERS


Subsidiary law
SUBSIDIARY LAW

THE SUBSIDIARY LAW CAN ONLY BE MADE IF THE RESPECTIVE ACT (KNOWN AS ENABLING ACT) GIVES POWER


EMPOWERING CLAUSE

THE PROCESS OF MAKING RWH BY-LAWS: A TYPICAL TCPD EXAMPLE

TECHNICAL COMMITTEE

DRAFT

LEGAL DEPARTMENT

THE DRAFT WILL BE DISCUSSED AT THE JAWATANKUASA

PERLAKSANAAN AKTA MEETING

THE DRAFT WILL BE DISCUSSED AT THE TCPD

STATE DIRECTORS MEETING

THE DRAFT WILL BEDISCUSSED AT THE JAWATANKUASA

PERANCANGAN & PEMBANGUNAN (TCPD)

THE DRAFT WILL BE DISCUSSED AT THE JAWATANKUASA

PERANCANGAN & PEMBANGUNAN (MINISTRY)

REVISED BY LEGAL ADVISOR

THE DRAFT WILL BE PRESENTED AND APPROVED AT

THE MAJLIS PERANCANGAN FIZIKAL NEGARA

MPFN WILL HAND THE DRAFT TO THE STATE AUTHORITY

MPFN WILL HAND THE DRAFT TO THE MINISTER

LEGAL ADVISOR (STATE ) WILL GAZZET THE DRAFT

LEGAL ADVISOR (MINISTRY) WILL GAZZETT THE DRAFT

BY-LAWS


Controls over subsidiary law
CONTROLS OVER SUBSIDIARY LAW

  • CONSULTATION

  • PUBLICITY

  • PARLIAMENTARY CONTROL

  • JUDICIAL REVIEW


Judicial decision
JUDICIAL DECISION

NEW PRINCIPLES CREATED IN COURT


Judicial decision1
JUDICIAL DECISION

  • PREVIOUS DECISION MADE BY PREVIOUS COURT IN A SIMILAR FACT

  • FAILURE TO FOLLOW THE PRECEDENT WOULD RESULT TO REVERSE ON APPEAL

  • PRECEDENT IS OBTAINED FROM THE DECISION OF THE SUPERIOR COURT


How judicial precedent works
HOW JUDICIAL PRECEDENT WORKS

  • THE COURT WILL ONLY FOLLOW THE PRECEDENT WHEN THE FACT IS SIMILAR

  • IF THE FACT IS NOT SIMILAR THE COURT WILL DISTINGUISH THE CASE AND NEED NOT TO FOLLOW THE EARLIER DECISION

  • THE COURT CAN OVERULE THE PRECEDENT IF IT IS PROVED THAT THE PREVIOUS DECISION WAS WRONG


English common law and equity
ENGLISH COMMON LAW AND EQUITY

S 3(1)(a) CIVIL LAW ACT 1956, ‘ THE COURT SHALL IN WEST MALAYSIA OR ANY PART THEREOF, APPLY THE COMMON LAW OF ENGLAND AND THE RULES OF EQUITY AS ADMINISTERED IN ENGLAND ON THE 7TH APRIL 1956


English common law and equity1
ENGLISH COMMON LAW AND EQUITY

ANY CHANGES OR DEVELOPMENT AFTER 7TH APRIL 1956 THE ENGLISH COMMON LAW AND EQUITY WILL NOT BECOME THE LAWS OF MALAYSIA, IT ONLY ACTS AS PERSUASIVE AUTHORITY


English common law and equity2
ENGLISH COMMON LAW AND EQUITY

TWO CONDITIONS FOR THE APPLICATION:-

  • ABSENCE OF LOCAL STATUTE COVERING THE SAME MATTER

  • ONLY IF SUITED TO LOCAL CIRCUMSTANCES


English commercial law
ENGLISH COMMERCIAL LAW

S 5(1) CIVIL LAW ACT 1956, ‘IN ALL QUESTIONS OR ISSUES WHICH ARISE OR WHICH HAVE TO BE DECIDED IN THE STATES OF WEST MALAYSIA OTHER THAN MALACCA AND PENANG WITH RESPECT TO THE LAW OF PARTNERSHIPS, CORPORATIONS, BANKS AND BANKING, PRINCIPALS AND AGENTS, CARRIERS BY AIR, LAND AND SEA, MARINE INSURANCE, AND WITH RESPECT TO MERCHANTILE LAW GENERALLY, THE LAW TO BE ADMINISTERED SHALL BE THE SAME AS WOULD BE ADMINISTERED IN ENGLAND IN THE LIKE CASE AT THE DATE OF THE COMING INTO FORCE OF THIS ACT, IF SUCH QUESTION OR ISSUE HAD ARISEN OR HAD TO BE DECIDED IN ENGLAND, UNLESS IN ANY CASE OTHER PROVISION IS OR SHALL BE MADE BY ANY WRITTEN LAW’


Customs
CUSTOMS

EACH RACIAL AND RELIGIOUS GROUP IS GOVERNED BY THEIR OWN SET OF PERSONAL LAWS, EG. ISLAMIC LAW FOR MUSLIM, IRRESPECTIVE OF THEIR ETHNICITY, NATIVE LAW FOR THE NATIVES (KHADAZAN, BIDAYUH, MURUT, ETC.)

CHINESE AND INDIAN CUSTOMARY: PREVIOUSLY JUDICIAL RECOGNITION ON VARIOUS CUSTOMARY LAW ON MARRIAGES

LAW REFORM (MARRIAGE AND DIVORCE) ACT 1976 GOVERNS MARRIAGES AMONG NON-MUSLIM (ABOLISHMENT OF POLYGAMOUS MARRIAGES)


Law of contract sources
LAW OF CONTRACT: SOURCES

  • STATUTES

    • CONTRACT ACT 1950

  • CASE LAWS

    • CASES DECIDED IN COURTS

  • ENGLISH COMMON LAW

    • BEFORE 7TH APRIL 1956


  • Law of contract introduction
    LAW OF CONTRACT: INTRODUCTION

    CONTRACT IS THE NUCLEUS OF ALL COMMERCIAL TRANSACTIONS


    What is contract
    WHAT IS CONTRACT?

    CONTRACT IS AN AGREEMENT WHICH IS ENFORCEABLE IN LAW


    What is agreement
    WHAT IS AGREEMENT

    MEETING OF THE MINDS

    TWO OR MORE PERSONS ARE SAID TO CONSENT WHEN THEY AGREE UPON THE SAME THING IN THE SAME SENSE

    CONSENSUS AD IDEM


    … BUT …

    NOT ALL AGREEMENTS ARE CONTRACT. THERE ARE SOME AGREEMENTS WHICH ARE NOT CONSIDERED AS CONTRACT

    EG. SOCIAL AGREEMENTS


    Agreements which are contract
    AGREEMENTS WHICH ARE CONTRACT

    • PROPOSAL

    • ACCEPTANCE

    • CONSIDERATION

    • INTENTION TO CREATE LEGAL RELATIONSHIP

    • COMPETENCE

    • FREE CONSENT


    Proposal
    PROPOSAL

    A PROPOSAL IS AN ACT THAT SIGNIFIES A PERSON’S WILLINGNESS TO DO OR TO ABSTAIN FROM DOING SOMETHING WITH A VIEW TO OBTAINING THE ASSENT OF ANOTHER


    Proposal1
    PROPOSAL

    IT IS AN OFFER OR A PROMISE TO BE BOUND BY HIS/HER TERMS IF THEY ARE ACCEPTED BY THE OTHER


    Legal principle
    LEGAL PRINCIPLE

    IT IS UPON THIS BASIS THAT A PROPOSAL SHOULD BE MADE CLEAR AND DEFINITE

    A PROPOSAL SHOULD NOT BE MADE IN UNAMBIGUOUS STATEMENT

    IF BARGAINING IS STILL POSSIBLE IN THE ARRANGEMENT THE SUPPOSED PROPOSAL SHOULD NOT BE CONSIDERED AS PROPOSAL AT ALL


    Proposal2
    PROPOSAL

    THE STATEMENT SHOULD SHOW A CLEAR WILLINGNESS TO BE BOUND BY HIS/HER TERMS IF ACCEPTED BY THE OTHER PARTY


    A response to a request for information
    A RESPONSE TO A REQUEST FOR INFORMATION

    HARVEY V FACEY

    PLAINTIFF: WILL YOU SELL US A BUMPER HALL PEN? TELEGRAPH LOWEST CASH PRICE.

    DEFENDANT: LOWEST PRICE FOR BUMPER HALL PEN, GBP 900


    Invitation to treat
    INVITATION TO TREAT

    INVITATION TO TREAT IS AN ACT TO INVITE OTHERS TO MAKE AN OFFER

    INVITATION TO TREAT IS NOT A PROPOSAL

    IT WILL NOT RESULT TO A CONTRACT IF ACCEPTED BY OTHERS


    Examples of invitation to treat
    EXAMPLES OF INVITATION TO TREAT

    • AUCTIONS

      • PAYNE V CAVE

  • ADVERTISEMENTS

    • COELHO V THE PUBLIC SERVICES COMMISSION

  • ITEMS DISPLAYED IN SHOPS

    • PHARMACEUTICAL SOCIETY OF GREAT BRITAIN V BOOTS CASH CHEMIST LTD


  • Proposal legal principle
    PROPOSAL: LEGAL PRINCIPLE

    A PROPOSAL CAN BE ADDRESSED TO A PARTICULAR PERSON OR TO A GENERAL PUBLIC

    • BOULTON V JONES

    • CARLILL V CARBOLIC SMOKE BALL


    Legal principle1
    LEGAL PRINCIPLE

    A PROPOSAL MAY BE WRITTEN, SPOKEN OR IMPLIED FROM CONDUCT


    Communication of proposal
    COMMUNICATION OF PROPOSAL

    EVERY PROPOSAL MADE SHOULD BE COMMUNICATED TO THE OTHER PARTY

    THE OTHER PARTY SHOULD HAVE THE KNOWLEDGE BEFORE ACCEPTING A PROPOSAL

    • R V CLARKE

      ‘There cannot be assent without knowledge of the offer’

      Higgins J


    Communication of proposal when complete
    COMMUNICATION OF PROPOSAL: WHEN COMPLETE

    ‘THE COMMUNICATION OF A PROPOSAL IS COMPLETE WHEN IT COMES TO THE KNOWLEDGE OF THE PERSON TO WHOM IT IS MADE’

    SECTION 4 (1)


    Acceptance
    ACCEPTANCE

    AN ACCEPTANCE IS AN ACT WHICH SHOWS THAT THE PERSON TO WHOM THE PROPOSAL IS MADE GIVES HIS/HER ASSENT TO THE PROPOSAL


    Legal principle2
    LEGAL PRINCIPLE

    TO CONVERT A PROPOSAL INTO A PROMISE THE ACCEPTANCE SHOULD BE ABSOLUTE AND UNQUALIFIED

    SECTION 7 (a)


    Legal principle3
    LEGAL PRINCIPLE

    THE LEGAL PRINCIPLE IS THAT THE ACCEPTANCE SHOULD BE A ‘MIRROR IMAGE’ TO THE PROPOSAL


    Counter offer
    COUNTER OFFER

    ANY MODIFICATION OR VARIATION OF THE PROPOSAL DOES NOT CONSTITUTE AN ACCEPTANCE BUT AMOUNTS TO A ‘COUNTER OFFER’. A COUNTER OFFER DESTROYS THE ORIGINAL OFFER.


    Hyde v wrench
    HYDE V WRENCH

    DEFENDANT OFFERED TO SELL HIS ESTATE FOR GBP 1000

    PLAINTIFF AGREED TO BUY BUT FOR GBP 950

    DEFENDANT REFUSED TO SELL

    PLAINTIF AGREED WITH THE ORIGINAL OFFER


    Battle of the forms
    BATTLE OF THE FORMS

    Butler Machine Tool v Ex-Cell-O-Corporation [1979] 1 All ER 965 – An arrangement to sell a machine. Both parties have their own standard terms. A makes an offer with ‘price variation clause’. B accepts but with its own terms i.e. without ‘price variation clause’ The court give the judgment to the person who last make an offer.


    Legal principle4
    LEGAL PRINCIPLE

    ‘SILENCE’ SHOULD NOT BE ACCEPTED AS A FORM OF ACCEPTANCE

    FELTHOUSE V BINDLEY


    General rule
    GENERAL RULE

    AN ACCEPTANCE SHOULD BE MADE KNOWN (COMMUNICATED) TO THE PERSON TO WHOM THE PROPOSAL IS MADE

    • FACE TO FACE CONTRACT

    • CONTRACT THROUGH TELEPHONE

    • CONTRACT THROUGH TELEX


    When communication is complete
    WHEN COMMUNICATION IS COMPLETE?

    4 (2) THE COMMUNICATION OF ACCEPTANCE IS COMPLETE

    (a) AS AGAINST THE PROPOSER WHEN IT IS PUT IN A COURSE OF TRANSMISSION TO HIM SO AS TO BE OUT OF THE POWER OF THE ACCEPTOR; AND

    (b) AS AGAINST THE ACCEPTOR WHEN IT COMES TO THE KNOWLEDGE OF THE PROPOSER


    Exception to the general rule
    EXCEPTION TO THE GENERAL RULE

    • UNILATERAL CONTRACTS

    • POSTAL RULE


    Postal rule
    POSTAL RULE

    ADAMS V LINDSELL

    DEFENDANT OFFERED TO SELL WOOL BY LETTER (THE LETTER WAS MISDIRECTED)

    PLAINTIFF ACCEPTED THE OFFER BY LETTER

    BEFORE THE LETTER ARRIVED DEFENDANT SOLD THE WOOL TO A THIRD PARTY

    ‘Communication of acceptance is complete and a contract is concluded when the acceptor has posted the letter of acceptance’


    Revocation of proposal
    REVOCATION OF PROPOSAL

    5(1) A PROPOSAL MAY BE REVOKED AT ANY TIME BEFORE THE COMMUNICATION OF ITS ACCEPTANCE IS COMPLETE AS AGAINST THE PROPOSER, BUT NOT AFTERWARDS


    Communication of revocation
    COMMUNICATION OF REVOCATION

    ALL REVOCATIONS MUST BE MADE KNOWN TO THE OTHER PARTY


    Byrne v van tien hoven
    BYRNE V VAN TIEN HOVEN

    The defendants wrote from Cardiff on 1 October offering to sell a quantity of tinplates to the plaintiffs in New York. On 8 October, the defendants posted a letter withdrawing the offer. On 11 October, the offer reached the plaintiffs, who accepted at once by telegram (and the plaintiffs also confirmed this in writing on 15 October). The defendants’ letter of withdrawal reached the plaintiffs on 20 October.

    Held: Mere posting of a letter of revocation does not amount to an effective communication to the acceptor.


    Consideration
    CONSIDERATION

    CONSIDERATION IS THE SYMBOL OF BARGAIN AND RECIPROCAL OBLIGATIONS


    What is consideration
    WHAT IS CONSIDERATION?

    CONSIDERATION IS A ‘PRICE’ GIVEN IN RETURN FOR A PROMISE



    Currie v misa
    CURRIE V MISA THE LAW.

    ‘A VALUABLE CONSIDERATION, IN THE EYES OF THE LAW, MAY CONSISTS EITHER IN SOME RIGHT, INTEREST, PROFIT, OR BENEFIT ACCRUING TO THE ONE PARTY, OR SOME FORBEARANCE, DETRIMENT, LOSS, OR RESPONSIBILITY GIVEN, SUFFERED OR UNDERTAKEN BY THE OTHER’


    Section 2 d contract act 1950
    SECTION 2 (d) CONTRACT ACT 1950 THE LAW.

    ‘WHEN, AT THE DESIRE OF THE PROMISOR, THE PROMISEE OR ANY OTHER PERSON HAS DONE OR ABSTAINED FROM DOING, OR DOES OR ABSTAINS FROM DOING, OR PROMISES TO DO OR TO ABSTAIN FROM DOING, SOMETHING, SUCH ACT OR ABSTINANCE OR PROMISE IS CALLED A CONSIDERATION FOR THE PROMISE’


    Classification
    CLASSIFICATION THE LAW.

    • EXECUTORY CONSIDERATION

      A promise is made in return for a promise

    • EXECUTED CONSIDERATION

      A performance is made in return for a promise

    • PAST CONSIDERATION

      A promise is made subsequent to and in return for an act that has already been performed


    Past consideration
    PAST CONSIDERATION THE LAW.

    Y FINDS X’S PERSIAN CAT

    Y RETURNS THE CAT TO X

    X PROMISES TO REWARD Y RM 100

    • IS THERE ANY CONTRACT?

    • IS THERE ANY CONSIDERATION?


    English common law
    ENGLISH COMMON LAW THE LAW.

    Past consideration is not valid because it has been done without reference to the existing promise

    Re McArdle [1951] Ch 669

    Lampleigh v Brathwait (1615) Hob 105


    Malaysian law
    MALAYSIAN LAW THE LAW.

    Section 2(d) Contract Act 1950

    Past consideration is considered as valid “when, at the desire of the promisor, the promisee or any other person has done or abstained from doing …”


    Consideration from a third party
    CONSIDERATION FROM A THIRD PARTY THE LAW.

    - English Common Law

    Consideration must move from the promisee/acceptor

    - Section 2(d) Contract Act 1950

    “ … the promisee or any other person …”

    Venkata Chinnaya v Verikatara Ma’ya (1881) ILR 4 Mad. 137


    Performance of a legal duty
    PERFORMANCE OF A LEGAL DUTY THE LAW.

    - PUBLIC DUTY IMPOSED BY LAW

    Glassbrook Bros. v Glamorgan County Council [1925] AC 270

    - PERFORMANCE OF A DUTY OWED TO PROMISOR

    Stilk v Myrick (1809) 2 Camp 317


    Consideration need not be adequate
    CONSIDERATION NEED NOT BE ADEQUATE THE LAW.

    Explanation 2 of Section 26

    • Phang Swee Kim v Beh I Hock (1964) MLJ 383

      An arrangement to sell a piece of land for RM500 which worth more than that


    Exceptions to general rule
    EXCEPTIONS TO GENERAL RULE THE LAW.

    - Section 26(a)

    An agreement made in writing and registered

    - Section 26(b)

    An agreement to compensate for something done

    - Section 26(c)

    An agreement to pay a statute barred debt


    Intention to create a legal relationship
    INTENTION TO CREATE A LEGAL RELATIONSHIP THE LAW.

    THE PARTIES CONTEMPLATE THAT THE AGREEMENT BE ENFORCEABLE IN LAW


    How to prove the presence of intention
    HOW TO PROVE THE PRESENCE OF INTENTION THE LAW.

    THE COURT WILL DECIDE UPON CASES AND THE PRINCIPLE OF ‘REBUTTABLE PRESUMPTION’


    Rebuttable presumption
    REBUTTABLE PRESUMPTION THE LAW.

    REBUTTABLE PRESUMPTION MEANS A SUGGESTION HOLDS GOOD SO LONG AS THERE IS NO EVIDENCE TO THE CONTRARY


    Agreements are categorised
    AGREEMENTS ARE CATEGORISED THE LAW.

    • COMMERCIAL AGREEMENTS

    • SOCIAL, DOMESTIC AND FAMILY AGREEMENTS


    Commercial agreements
    COMMERCIAL AGREEMENTS THE LAW.

    THE PRESUMPTION

    THERE IS AN INTENTION TO CREATE LEGAL RELATIOSHIPS UNLESS IT IS PROVEN OTHERWISE


    Commercial agreements1
    COMMERCIAL AGREEMENTS THE LAW.

    PRESUMPTION REMAINS

    Carlill v Carbolic Smoke Ball (1892) 2 QB 484


    Commercial agreements2
    COMMERCIAL AGREEMENTS THE LAW.

    PRESUMPTION REFUTED

    Jones v Vernons Pools [1938] 2 All ER 626

    • Express Deny of the Intention

      Rose and Frank v Crompton Bros [1923] 2 KB 261

    • Memorandum of Understanding (MoU)


    Social domestic and family agreements
    SOCIAL, DOMESTIC AND FAMILY AGREEMENTS THE LAW.

    THE PRESUMPTION

    THERE IS NO INTENTION TO CREATE LEGAL RELATIONSHIPS UNLESS PROVEN OTHERWISE


    Social domestic and family agreements1
    SOCIAL, DOMESTIC AND FAMILY AGREEMENTS THE LAW.

    PRESUMPTION REMAINS

    Balfour v Balfour [1919] 2 KB 571

    Jones v Padavatton [1969] 2 All ER 616


    Social domestic and family agreements2
    SOCIAL, DOMESTIC AND FAMILY AGREEMENTS THE LAW.

    PRESUMPTION REFUTED

    Merritt v Merritt [1970] 2 All ER 760

    • Have separated

      Simpkins v Pays [1955] 1 WLR 975

    • Not a Household Agreement

      Parker v Clark [1960] 1 WLR 286

    • Truly rely upon the promise; has given up something of value

      Tanner v Tanner [1975] 1 WLR 1346


    Legal capacity
    LEGAL CAPACITY THE LAW.

    THE PARTIES WHO INTEND TO ENTER INTO AN AGREEMENT SHOULD HAVE FULL CONTRACTUAL CAPACITY

    THE PARTIES SHOULD BE LEGALLY COMPETENT


    Competent section 11 contract act 1950
    ‘COMPETENT’ THE LAW. SECTION 11 CONTRACT ACT 1950

    • A PERSON WHO IS OF AGE OF MAJORITY

    • A PERSON WHO IS OF SOUND MIND

    • A PERSON WHO IS NOT DISQUALIFIED BY ANY LAW


    Legal effect of incompetence
    LEGAL EFFECT OF INCOMPETENCE THE LAW.

    THE AGREEMENT WILL BE RENDERED VOID

    - Mohori Bibee v Dharmodas Ghose (1903)ILR 30 Cal 539

    - Tan Hee Juan v The Boon Keat [1934] MLJ 96


    Exceptions to general rule1
    EXCEPTIONS TO GENERAL RULE THE LAW.

    • NECESSARIES

    • SCHOLARSHIPS

    • MARRIAGES

    • INSURANCES

    • SERVICES


    Necessaries
    NECESSARIES THE LAW.

    • NECESSARIES INCLUDE EVERYTHING THAT IS ESSENTIAL AND BENEFICIAL TO THE MINOR

      • E.G. FOOD, DRINK, CLOTHING AND EDUCATION

  • DEFINITION ON WHAT CONSTITUTES NECESSARY VARIES AND DEPENDANT UPON CIRCUMSTANCES AND CASES

    • E.G. WINTER COAT

  • THE MINOR WILL HAVE TO PAY A REASONABLE PRICE FOR THE NECESSARY


  • Scholarships
    SCHOLARSHIPS THE LAW.

    NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE PRINCIPAL ACT, NO SCHOLARSHIP AGREEMENT SHALL BE INVALIDATED ON THE GROUND THAT:-

    A) THE SCHOLAR ENTERING ONTO SUCH AGREEMENT IS NOT OF THE AGE OF MAJORITY

    B) SUCH AGREEMENT IS CONTRARY TO ANY PROVISION OF ANY LAW IN FORCE RELATING TO MONEY LENDERS, OR

    C) SUCH AGREEMENT LACKS CONSIDERATION

    SECTION 4(a) CONTRACT (AMENDMENT) ACT 1976


    Marriages
    MARRIAGES THE LAW.

    PROMISE OF MARRIAGE HAS BEEN HELD TO BE VALID. A MINOR MAY SUE OR BE SUED FOR BREACH.

    RAJESWARY V BALAKRISHNAN


    Insurances
    INSURANCES THE LAW.

    A MINOR OVER THE AGE OF TEN MAY ENTER INTO A CONTRACT OF INSURANCE BUT IF HE OR SHE IS UNDER THE AGE OF SIXTEEN YEARS, THE WRITTEN CONSENT OF THE PARENTS OR GUARDIANS IS ESSENTIAL

    INSURANCE ACT 1963


    Services
    SERVICES THE LAW.

    NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THE CONTRACTS ACT 1950 OR THE PROVISIONS OF ANY OTHER WRITTEN LAW, ANY CHILD OR YOUNG PERSON SHALL BE COMPETENT TO ENTER INTO A CONTRACT OF SERVICE UNDER THIS ACT OTHERWISE THAN AS AN EMPLOYER , AND MAY SUE AS PLAINTIFF WITHOUT HIS NEXT FRIEND OR DEFEND ANY ACTION WITHOUT A GUARDIAN AD LITEM

    CHILDREN AND YOUNG PERSONS (EMPLOYMENT) ACT 1966


    False representation on age
    FALSE REPRESENTATION ON AGE THE LAW.

    THE MINOR IS NOT ESTOPPED FROM PLEADING MINORITY IN AVOIDING A CONTRACT

    NATESAN V THANALETCHUMI


    Certainty
    CERTAINTY THE LAW.

    IT IS IMPORTANT THAT TERMS AND CONDITIONS OF A CONTRACT BE CLEAR AND CERTAIN. COURTS WILL NEVER ACCEPT TERMS OR CONDITIONS WHICH ARE VAGUE AND OBSCURE


    Karuppan chetty v suah thian 1916 1 fmslr 300
    Karuppan Chetty v Suah Thian (1916) 1 FMSLR 300 THE LAW.

    The court declared that the contract was void. The terms used in the contract was too vague and too obscure. The parties agreed to a lease of RM 35 per month ‘for as long as he likes’.


    Legal effect of uncertainty
    LEGAL EFFECT OF UNCERTAINTY THE LAW.

    AGREEMENTS, THE MEANING OF WHICH IS NOT CERTAIN OR CAPABLE OF BEING MADE CERTAIN, IS VOID

    SECTION 30 CONTRACT ACT 1950


    Examples
    EXAMPLES THE LAW.

    - A agrees to sell to B ‘a hundred tons of oil’. There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.

    - A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce. There is no uncertainty here to make the agreement void.

    - A, who is a dealer in coconut oil only, agrees to sell to B ‘one hundred tons of oil’. The nature of A’s trade affords an indication of the meaning of the words, and A has entered into a contract for the sale of one hundred tons of coconut oil.


    Free consent
    FREE CONSENT THE LAW.

    TWO OR MORE PERSON ARE SAID TO CONSENT WHEN THEY AGREE UPON THE SAME THING IN THE SAME SENSE. THIS CONSENT SHOULD BE GIVEN FREELY IF ONE WOULD LIKE TO MAINTAIN THE VALIDITY OF A CONTRACT.


    Elements that vitiate consent
    ELEMENTS THAT VITIATE CONSENT THE LAW.

    - Coercion

    - Undue Influence

    - Fraud

    - Misrepresentation

    - Mistake


    Legal effect
    LEGAL EFFECT THE LAW.

    With the exception of ‘mistake’ the effect of those elements to contract is that it will render that contract to be voidable.


    Case law
    CASE LAW THE LAW.

    - Kesarmal s/o Lecthman Das v Valiappa Chettiar [1954] MLJ 119

    - Chin Nam Bee Development Sdn Bhd v Tai Kim Choo & 4 Ors [1988] 2 MLJ 117


    Coercion
    COERCION THE LAW.

    Coercion is the committing, or threatening to commit any act forbidden by the Penal Code, or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement

    Section 15 Contract Act 1950


    Repudiation
    REPUDIATION THE LAW.

    The repudiation of contract should be made within a reasonable time.

    Wong Ah Fook v Kerajaan Negeri Johor [1937] MLJ Rep 121


    Undue influence
    UNDUE INFLUENCE THE LAW.

    A person who has made a contract under ‘undue influence’ may rescind the contract at his choice. The law gives such right to that person because the contract was not made upon ‘free will’.


    What constitutes undue influence
    WHAT CONSTITUTES UNDUE INFLUENCE THE LAW.

    A contract is said to be induced by ‘undue influence’ where the relations subsisting between the parties are such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage over the other.

    Section 16 (1) Contract Act 1950


    Ragunath prasad v sarju prasad air 1924 pc 60
    Ragunath Prasad v Sarju Prasad AIR 1924 PC 60 THE LAW.

    There should be at least THREE important points that exist within that arrangement before a particular contract could be rescind;

    • There exists a situation where one person is in a position to dominate the will of the other

    • That person uses his position to gain an unfair advantage

    • The gain should be in a manner that is unfair.


    Section 16 2 contract act 1950
    SECTION 16 (2) THE LAW. CONTRACT ACT 1950

    A person is said to have been in a position to dominate the will of the other when;

    • He holds a real or apparent authority over the other

    • He stands in a fiduciary relation to the other

    • A contract is made with a person whose mental capacity is temporarily or permanently affected by reason of age, illness or mental or bodily distress


    Proves of no domination
    PROVES OF ‘NO DOMINATION’ THE LAW.

    Where a person who is in a position to dominate the will of another, enters into a contract with him, and the transaction appears, on the face of it or on the evidence adduce, to be unconscionable, the burden of proving that the contract was not induced by undue influence shall lie upon the person in a position to dominate the will of the other.

    Section 16 (3) (a) Contract Act 1950


    Salwath haneem v hadjee abdullah 1894 2 sslr 57
    Salwath Haneem v Hadjee Abdullah (1894) 2 SSLR 57 THE LAW.

    The burden of proof lies upon the defendants who have ‘a confidential relationship’ with the plaintiff.


    How to prove
    HOW TO PROVE THE LAW.

    One way to prove is through the advice of someone who has the expertise to do so.

    Inche Noriah v Shaik Allie bin Omar (1929) AC 127

    An advice has been given to the dominated party by a lawyer.


    Fraud
    FRAUD THE LAW.

    Fraud is being committed when one person makes a ‘false representation’, which;

    • He believes that it is not true;

    • He is not confident that the statement is true;

    • He never care whether the statement is true or not

      with the intention of causing any person to enter into a contract.

      Section 17 Contract Act 1950


    Examples1
    EXAMPLES THE LAW.

    - A, intending to deceive B, falsely represents that five hundred gantangs of indigo are made annually at A’s factory, and thereby induces B to buy the factory. The contract is voidable at the option of B

    - B, having discovered a vein of ore on the estate of A, adopts means to conceal, and does conceal, the existence of the ore from A. Through A’s ignorance B is enabled to buy the estate at an undervalue. The contract is voidable at the option of A.


    Active false representation
    ACTIVE FALSE REPRESENTATION THE LAW.

    Fraud has not been committed even if one person failed to disclose the true fact. A mere non-disclosure is not a fraud.


    Examples2
    EXAMPLES THE LAW.

    - A sells, by auction, to B, a horse which A knows to be unsound. A says nothing to B about the horse’s unsoundness. This is not fraud in A.

    - A and B, being traders, enter upon a contract. A has private information of a change in prices which would affect B’s willingness to proceed with the contract. A is not bound to inform B.



    Explanation of section 17
    Explanation of Section 17 THE LAW.

    Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless the circumstances of the case are such that, regard being had to them, it is the duty of the person keeping silence to speak, or unless his silence is, in itself, equivalent to speech.


    It is the duty of the person keeping silence to speak
    ‘it is the duty of the person keeping silence to speak’ THE LAW.

    - Contract of Insurance

    - Sale Through Prospectus

    - The Creation of Partnership


    His silence is in itself equivalent to speech
    ‘his silence is, in itself, equivalent to speech’ THE LAW.

    The doctrine of ‘buyers beware’

    When a question is being posed to the seller, he is expected to give the answer. At this point, whether he speaks or not, both will be regarded as the ‘answer’ for the question.


    Examples3
    EXAMPLES THE LAW.

    B says to A, ‘If you do not deny it, I shall assume that the horse is sound’. A says nothing. Here, A’s silence is equivalent to speech.


    Misrepresentation
    MISREPRESENTATION THE LAW.

    A false statement has been made without the intention to deceive another.


    Section 18 contract act 1950
    Section 18 Contract Act 1950 THE LAW.

    Misrepresentation includes;

    • The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true;

    • Any breach of duty which, without an intent to deceive, gives an advantage to the person committing it, or anyone claiming under him, by misleading another to his prejudice, or to the prejudice of anyone claiming under him; and

    • Causing, however innocently, a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement.


    The difference between fraud and misrepresentation
    The Difference Between Fraud and Misrepresentation THE LAW.

    The basic difference between fraud and misrepresentation is that in fraud the person making the representation does not himself believe in its truth whereas, in cases of misrepresentation, he may believe the representation to be true.


    Fraud and misrepresentation must influence the other party to make contract
    Fraud and Misrepresentation Must Influence the Other Party to Make Contract

    The fraud or misrepresentation is rendered irrelevant if it has not induced or caused the other party to enter into the contract. A false statement does not per se give rise to a cause of action. The representee must have relied on the statement of the representator.


    The effect of fraud and misrepresentation
    The Effect of Fraud and Misrepresentation to Make Contract

    When consent to an agreement is caused by coercion, fraud, or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.

    Section 19(1) Contract Act 1950


    Exception to the general principle
    Exception to the General Principle to Make Contract

    ‘If such consent was caused by misrepresentation or by silence, fraudulent within the meaning of section 17, the contract, nevertheless, is not voidable, if the parties whose consent was so caused had the means of discovering the truth with ordinary diligence’.

    Exception – Section 19 Contract Act 1950


    Contents of contract
    CONTENTS OF CONTRACT to Make Contract

    What has been agreed in an agreement is the content of a contract. It is also known as the TERMS of contract.


    Term and representation
    Term and Representation to Make Contract

    - Term is a condition or a warranty that is contained in a contract

    - Representation is a mere statement that is not included in a contract


    Classifications of term
    Classifications of Term to Make Contract

    - Express Term

    • The terms that are clearly stated and included in a contract

      - Implied Term

    • The terms that are not expressly stated but the court assumes that such terms exist in a contract


    Implied terms
    Implied Terms to Make Contract

    - To give effect to the commercial practice

    - To realize the intention of the contracting parties

    - Required by law


    Implied terms1
    Implied Terms to Make Contract

    An implied term is a term that is not included in a contract during negotiation but the law or the court assumes that such term exists in the contract.

    The court, however, will be very careful in this case in the sense that ‘the freedom of contract should be preserved’.


    Commercial practices
    Commercial Practices to Make Contract

    The court will normally imply terms in a contract when it thinks fit or when it thinks it is important as to give the effect to commercial practices.

    Pasuma Pharmacal Corpn. v McAlister & Co. Ltd. [1965] 1 MLJ 221

    “Good Faith”


    Commercial practices1
    Commercial Practices to Make Contract

    Commercial practices mean that the use of such terms in commercial transactions is very common, certain and reasonable.

    Preston Corp. Sdn. Bhd. v Edward Leong & Ors. [1982] 2 MLJ 22

    “the keeping of the first film negative and the cost of printing”


    Commercial practices2
    Commercial Practices to Make Contract

    ‘Such practice has been well accepted by the court; and it has been part of the law”

    Pembangunan Maha Murni Sdn. Bhd. v Jururus Ladang Sdn. Bhd. [1986] 2 MLJ 30


    Intentions of the contracting parties
    Intentions of the Contracting Parties to Make Contract

    The court will also implied a term in a contract when it thinks that it is important as to give effect to the intention of the contracting parties.

    Yong Ung Kai v Enting [1965] 2 MLJ 98


    Legal requirements
    Legal Requirements to Make Contract

    The court will implied a term in a contract when the law requires so.

    - Sale of Goods (Malay States) Act 1957

    - Hire Purchase Act 1967

    - National Land Code 1965


    Categories of term
    Categories of Term to Make Contract

    - Condition – an essence of a contract. A breach of a condition would render to a recession.

    - Warranty – a supportive factor to a contract. A breach of a warranty will not render the contract be rescind but the law will allow the injured party to make a claim.


    Standard form contracts
    Standard Form Contracts to Make Contract

    Same contract being made to different persons.

    • To expedite the transaction

    • To reduce the cost


    Standard form contracts1
    Standard Form Contracts to Make Contract

    Come in a package. One side is imposing a set of terms on the other party. ‘Take it or leave it’.

    One problem is the inclusion of an ‘exemption clause’ in that particular transaction.


    Exemption clause
    Exemption Clause to Make Contract

    The main purpose of Exemption Clause is either;

    • to avoid liability; or

    • at least to limit liability


    Ecs in contracts
    ECs in Contracts to Make Contract

    The Exemption Clause would be considered as part of contract/valid term of contract if it has been properly;

    • included in a contract

    • a proper notice has been given


    The incorporation of the ecs
    The Incorporation of the ECs to Make Contract

    When an exemption clause has been incorporated into a contract the clause is considered as part of the contract. The fact that the party did not aware about the term does not affect the validity of the clause.

    L’Estrange v F Graucob Ltd. [1934] 2 KB 394


    Notice about the ecs
    Notice About the ECs to Make Contract

    The notice should be made either before or at the time the contract being made.


    The effectiveness of an ec in a contract
    The Effectiveness of an EC in a Contract to Make Contract

    Notice

    • A notice must be served before or at the time the contract is made

      Olley v Marlborough Court Ltd [1949] 1 KB 532

      Thornton v Shoe Lane Parking [1971] 2 QB 163


    The effectiveness of an ec in a contract1
    The Effectiveness of an EC in a Contract to Make Contract

    Regular as a Notice – ‘Course of Dealing’

    • A consistent course of dealing would lead to the application of the principle of notice

      Spurling v Bradshaw [1956] 1 WLR 461


    The effectiveness of an ec in a contract2
    The Effectiveness of an EC in a Contract to Make Contract

    The Ticket Rule

    • To make the terms that contain in a ticket valid reasonable steps must be taken so as to informed the other party about the EC before the contract being made

      Chapelton v Barry UDC [1940] 1 KB 532

      Parker v South Eastern Railway Co. [1877] 2 CPD 416


    The effectiveness of an ec in a contract3
    The Effectiveness of an EC in a Contract to Make Contract

    The Principle of Contra Proferentem

    • When words used is unclear or ambiguous the term will be interpreted in favor of the other party


    The effectiveness of an ec in a contract4
    The Effectiveness of an EC in a Contract to Make Contract

    An Oral Statement

    • Where there are two different wordings as regard to the EC, one in an oral form the other in a written form, the oral form will take precedent over the written form

      Curtis v Chemical Cleaning and Dyeing Co. [1951] 1 KB 805


    The effectiveness of an ec in a contract5
    The Effectiveness of an EC in a Contract to Make Contract

    Carelessness

    • Where a lost or an injury has happened as a result of carelessness the party sought to avoid liability cannot rely upon the EC

      Chin Hui Nam v Comprehensive Motor Cleaning & Corporation


    The effectiveness of an ec in a contract6
    The Effectiveness of an EC in a Contract to Make Contract

    Misrepresentation or Fraud

    • Where one party has misrepresented as to the effect of an EC, this will automatically invalidate the effectiveness of an EC

      Curtis v Chemical Cleaning and Dyeing Co [1951] 1 KB 805


    Discharge of contract
    Discharge of Contract to Make Contract

    - Contract will give rise to rights and liabilities

    - Discharge – parties to contract will be free from further obligation under the contract

    - Rights and liabilities will be terminated

    - Contract will be terminated


    Discharge of contract1
    Discharge of Contract to Make Contract

    - Performance

    - Agreement

    - Breach

    - Frustration


    Performance
    Performance to Make Contract

    - Common way of discharging a contract

    - Parties have performed their obligations

    - If only one has performed, he alone is discharged, the other will not be discharged until he performs his obligations under the contract


    Performance1
    Performance to Make Contract

    The parties to a contract must either perform, or offer to perform, their respective promises, unless the performance is dispensed with or excused under this Act, or of any other law.

    Section 38 (1)


    Performance2
    Performance to Make Contract

    - Complete performance

    - Substantial performance

    - Quantum Meruit


    Complete performance
    Complete Performance to Make Contract

    - ‘Entire Contract’ – the performance must be made wholly – failure to do so will give the right to the other party to refuse performance

    - Cutter v Powell


    Substantial performance
    Substantial Performance to Make Contract

    - A plaintiff will be able to recover the sum due under the contract less the sum the defendant could claim in damages

    - Kunchi Raman v Goh Bros. Sdn. Bhd


    Quantum meruit
    Quantum Meruit to Make Contract

    A claim can be made on the basis of what has been done

    Haji Hasnan v Tan Ah Kian


    Time for performance
    Time For Performance to Make Contract

    Performance must be made within the period that has been fixed

    Section 51


    Time as the essence
    Time as the Essence to Make Contract

    Failure to comply with the time result to repudiation

    Section 56(1)(2)(3)


    Frustration
    FRUSTRATION to Make Contract

    A CONTRACT TO DO AN ACT WHICH, AFTER THE CONTRACT IS MADE, BECOMES IMPOSSIBLE, OR BY REASON OF SOME EVENT WHICH THE PROMISOR COULD NOT PREVENT, UNLAWFUL, BECOMES VOID WHEN THE ACT BECOMES IMPOSSIBLE OR UNLAWFUL

    SECTION 57(2) CONTRACT ACT 1950


    Frustration1
    FRUSTRATION to Make Contract

    • DESTRUCTION OF THE PURPOSE

      • KRELL V HENRY

      • KHOO THAM SOOI V CHAN CHIAU HEE

    • DESTRUCTION OF SUBJECT MATTER

      • TAYLOR CALDWELL

      • KHAN DAU YAU V KIM NAM REALTY

    • WHEN THERE IS A NEW LAW

      • STANDERED CHARTERED BANK V KUALA LUMPUR LANDMARK SDN BHD

    • WHEN THERE IS A WAR

      • H A BERNEY V TRONOH MINES


    Law of agency
    LAW OF AGENCY to Make Contract

    An agency is a tripartite contract that involves ‘principal’, ‘agent’ and ‘third party’.

    Section 135 Contract Act


    Creation of agency
    CREATION OF AGENCY to Make Contract

    - Express Appointment

    - Implied Appointment

    - Ratification

    - Necessity


    Section 140 contract act
    Section 140 Contract Act to Make Contract

    An authority is said to be express when it is given by words spoken or written. An authority is said to be implied when it is to be inferred from the circumstances of the case; and things spoken or written, or the ordinary course of dealing, may be accounted circumstances of the case.


    Implied appointment
    Implied Appointment to Make Contract

    When a person by words or conducts holds out that the other has the authority to act on his behalf - that other person will be considered in law as his agent.

    Illustration

    A owns a shop in Kajang, living himself in Kuala Lumpur, and visiting the shop occasionally. The shop is managed by B, and he is in the habit of ordering goods from C in the name of A for the purpose of the shop, and of paying for them out of A’s funds with A’s knowledge. B has an implied authority from A to order goods from C in the name of A for the purposes of the shop.


    Situations where contract of agency are implied
    Situations Where Contract of Agency are Implied to Make Contract

    - The relationship that exists between a husband and wife

    - The relationship that exists between partners in a contract of partnership.


    Ratification
    Ratification to Make Contract

    Where acts are done by one person on behalf of another but without his knowledge or authority, he may elect to ratify or disown the acts. If he ratifies them, the same effects will follow as if they had been performed by his authority

    Section 149 Contract Act


    Example
    Example to Make Contract

    1 Jan P appoints A as agent to buy a car of not more than RM 50,000.

    2 Jan T makes an offer to sell a car for RM 51,000 to A.

    3 Jan A accepts the offer


    Conditions for ratification
    Conditions for Ratification to Make Contract

    - Unauthorised act

    - The act is for a principal

    - The principal must be in existence

    - Ratification must not injure a third party

    - The principal must have full knowledge


    The effect of ratification
    The Effect of Ratification to Make Contract

    Ratification validates the unauthorised act, and it will operate retrospectively, i.e. it dates back to the time when the original contract was made, not from the date of ratification.

    Bolton and Partners v Lambert (1889) 41 Ch D 295


    Necessity
    Necessity to Make Contract

    An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances.

    Section 142 Contract Act


    A consigns provisions to B at Taiping, with directions to send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    Great Northern Railway v Swaffield (1874) LR 9 Ex. 132


    Conditions that must be satisfied
    Conditions that Must be Satisfied send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    - Attempts have been made to get the principal’s instruction

    - There exists a state of emergency

    - The act is for the benefit of the principal

    - The agent has acted in a good faith


    The authority of an agent
    The Authority of an Agent send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    An agent having an authority to do an act has authority to do every lawful thing which is necessary in order to do the act

    Section 141 Contract Act


    The authority of an agent1
    The Authority of an Agent send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    - Actual Authority

    The power that is stated in the agreement

    - Apparent Authority

    The power that is implied by a third party


    Apparent authority
    Apparent Authority send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    When an agent has, without authority, done acts or incurred obligations to third persons on behalf of his principal, the principal is bound by those acts or obligations if he has by his words or conduct induced such third persons to believe that those acts and obligations were within the scope of the agent’s authority

    Section 190 Contract Act

    Panorama Development (Guildford) Ltd. V Furnishing Fabric Ltd. [1971] 2 QB 711


    Duties of an agent
    Duties of an Agent send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    - To obey the principal’s instruction

    - To act according to the customs

    - To exercise care and diligence

    - To render proper accounts when required

    - To pay all sums received

    - To communicate with the principal

    - Conflict of interest

    - Secret profit

    - Confidential information

    - Delegation of authority


    Duties of a principal
    Duties of a Principal send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    - To pay the commission

    - Not to prevent the agent from earning his commission

    - To reimburse the agent


    Effects of contracts made by agents
    Effects of Contracts Made by Agents send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    - Contract made under a named principal

    - Contract made under a disclosed principal

    - Contract made under an undisclosed principal


    Termination of agency
    Termination of Agency send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    An agency is terminated by the principal revoking his authority; or by the agent renouncing the business of agency; or by the business of the agency being completed; or by either the principal or agent dying or becoming of unsound mind; or by the principal being adjudicated or declared a bankrupt or an insolvent

    Section 154


    Termination of agency1
    Termination of Agency send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    - By the Act of the Parties

    - By Operation of Law


    By the act of the parties
    By the Act of the Parties send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    - The principal revoking his authority

    - The agent renouncing the business of agency


    The principal cannot revoke the contract when; send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    • Part of the job has been done

    • The agent has an interest in the contract


    Section 155 contract act
    Section 155 Contract Act send them immediately to C at Parit Buntar. B may sell the provisions at Taiping, if they will not bear the journey to Parit Buntar without spoiling.

    Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest.

    Illustration

    A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, not can it be terminated by his unsoundness of mind or death.


    If the period of the business of the agency has been fixed, the contract could not be terminated unless the time has lapsed.


    By operation of law
    By Operation of Law the contract could not be terminated unless the time has lapsed.

    - The business of the agency being completed

    - The death of the principal or agent

    - The principal or agent becomes unsound

    - The principal becomes insolvent or being declared bankrupt


    Sale of goods
    Sale of Goods the contract could not be terminated unless the time has lapsed.

    Sale of Goods Act 1957 (Revised 1989)

    The SGA applies to contracts for the sale of all types of goods;

    • Commercial sales/Private sales

    • Wholesale/Retail

    • New/Second-hand goods


    Contract of sale
    Contract of Sale the contract could not be terminated unless the time has lapsed.

    A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.

    Section 4(1) SOGA 1957


    Sale and agreement to sell
    Sale and Agreement to Sell the contract could not be terminated unless the time has lapsed.

    - A contract of sale

    • The property in the goods transfers to the buyers at the time the contract is made

      - An agreement to sale

    • The property in the goods will transfer at future time (e.g. when condition has been fulfilled)


    Sale and agreement to sell1
    Sale and Agreement to Sell the contract could not be terminated unless the time has lapsed.

    Where under a contract of sale the property in the goods is transferred from the seller to the buyer, the contract is called a sale [contract], but where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell.

    Section 4(3) SOGA 1957


    Consideration1
    Consideration the contract could not be terminated unless the time has lapsed.

    Under a Contracts Act 1950 consideration can be anything of values (in the eyes of the law)

    • Can a thing be accepted as consideration?

    • Should it be in the form of money?

    • How about thing + money?


    Consideration2
    Consideration the contract could not be terminated unless the time has lapsed.

    Section 4(1) provides that a contract of sale is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price.


    Goods
    Goods the contract could not be terminated unless the time has lapsed.

    Goods means every kind of movable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale

    Section 2 SOGA 1957


    Classification of goods
    Classification of Goods the contract could not be terminated unless the time has lapsed.

    Goods

    Existing Goods

    Future Goods

    Specific

    Unascertained

    Specific

    Unascertained


    Conditions and warranties
    Conditions and Warranties the contract could not be terminated unless the time has lapsed.

    • Condition is a term essential to a contract, a breach of which will allow the other party to treat the contract as repudiated

      Section 12(2) SOGA

    • Warranty is a term collateral to a contract, a breach of which will give rise to a claim for damages but not to repudiate the contract

      Section 12(3) SOGA


    Breach of conditions
    Breach of Conditions the contract could not be terminated unless the time has lapsed.

    There are four circumstances where a breach of condition is considered as a breach of warranty, hence a contract could not be repudiated:-

    - the buyer waives the condition

    - the buyer chooses to treat the breach of condition as the breach of warranty

    - the buyer has accepted the goods or part of it

    - the contract involves the sale of specific goods


    A scheme of consumer protection
    A Scheme of Consumer Protection the contract could not be terminated unless the time has lapsed.

    Sections 14-17 SOGA provide a scheme of consumer protection.

    Basically, the sections put some obligations on the seller whereby he has to ensure that the buyer will have a good title of the goods; the buyer will enjoy a quiet possession of the goods; the goods are of merchantable quality and fit for purpose and etc.


    Implied terms2
    Implied Terms the contract could not be terminated unless the time has lapsed.

    These consumer protection schemes are discussed under the topic of implied terms


    Implied condition as to title
    Implied Condition as to Title the contract could not be terminated unless the time has lapsed.

    Unless a different intention is shown there is an implied condition on the part of the seller, that, in the case of a sale, he has the right to sell the goods, and that, in the case of an agreement to sell, he will have a right to sell the goods at the time when the property is to pass.

    Section 14(a) SOGA


    Implied warranty as to quiet possession
    Implied Warranty as to Quiet Possession the contract could not be terminated unless the time has lapsed.

    Unless a different intention is shown, there is an implied warranty that the buyer shall have and enjoy quiet possession of the goods

    Section 14(b) SOGA


    Implied warranty that the goods are free from encumbrance
    Implied Warranty that the Goods are Free from Encumbrance the contract could not be terminated unless the time has lapsed.

    Unless a different intention is shown, there is an implied warranty that the goods shall be free from any charge or encumbrance in favour of any third party not declared or known to the buyer before or at the time when the contract is made

    Section 14(c) SOGA


    Sale by description
    Sale by Description the contract could not be terminated unless the time has lapsed.

    Where there is a contract for the sale of goods by description there is an implied condition that the goods shall correspond with the description; and, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description.

    Section 15 SOGA


    Implied condition as to quality or fitness
    Implied Condition as to Quality or Fitness the contract could not be terminated unless the time has lapsed.

    There is no implied condition unless:-

    • The buyer makes known to the seller the particular purpose he buys the goods

    • The transaction was made upon description while at the same time the seller always deal with the goods

      Section 16 SOGA


    Sale by sample
    Sale by Sample the contract could not be terminated unless the time has lapsed.

    In the case of a contract for sale by sample there is an implied condition:-

    • That the bulk shall correspond with the sample in quality

    • That the buyer shall have reasonable opportunity of comparing the bulk with the sample

    • That the goods shall be free from any defect rendering them unmerchantable which would not be apparent on reasonable examination of the sample

      Section 17 SOGA


    The transfer of the property
    The Transfer of the Property the contract could not be terminated unless the time has lapsed.

    • When the property passes to the buyer?

    • How to determine whether the transfer of the property?

    • Why is it so important?


    Ownership and the risk
    Ownership and the Risk the contract could not be terminated unless the time has lapsed.

    In principle the person who owns the goods shall bear the risk of the goods.

    Therefore if the goods damaged and the ownership was vested in the buyer, that particular buyer shall bear the loss.


    Risk in goods
    Risk in Goods the contract could not be terminated unless the time has lapsed.

    Risk prima facie passes with property

    Unless otherwise agreed, the goods remain at the seller’s risk until the property therein is transferred to the buyer, but when the property therein is transferred to the buyer, the goods are at the buyer’s risk whether delivery has been made or not

    Section 26 SOGA


    Who shall bear the risk
    Who shall bear the risk? the contract could not be terminated unless the time has lapsed.

    Datin Mariam phoned Ah Chong ordering six bottles of ‘sos sedap’. Due to the constraint of time Ah Chong has asked his son, Ah Seng to deliver the sauces to Datin Mariam’s house. On his way however Ah Seng involved in an accident. All the bottles were broken and spoiled.

    Who shall bear the loss? The seller or the buyer? Why?


    Who shall bear the risk1
    Who shall bear the risk? the contract could not be terminated unless the time has lapsed.

    Datin Mariam visited Ah Chong’s shop and chose six bottles of ‘sos sedap’. Due to the constraint of time Datin Marian asked Ah Chong to deliver the six bottles of ‘sos sedap’. Ah Seng took the responsibility but on his way however he got involve in an accident. All the bottles were broken and spoiled.

    At this time who shall bear the loss? The seller or the buyer? Why?


    Unascertained goods
    Unascertained Goods the contract could not be terminated unless the time has lapsed.

    Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained.

    Section 18 SOGA


    Specific goods
    Specific Goods the contract could not be terminated unless the time has lapsed.

    The property in the goods is transferred to the buyer at such time as the parties to the contract intend it to be transferred.

    Section 19 SOGA

    Regard has been made to the terms of contract as to ascertain the intention of the parties.

    Sections 20-24 also provide guidelines as to ascertain the intention of the parties.


    Goods in a deliverable state
    Goods in a Deliverable State the contract could not be terminated unless the time has lapsed.

    Where there is an unconditional contract for the sale of specific goods in a deliverable state the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment of the price, or the time of delivery of the goods, or both, is postponed.

    Section 20 SOGA


    Goods to be made deliverable
    Goods to Be Made Deliverable the contract could not be terminated unless the time has lapsed.

    Where there is a contract for the sale of specific goods and the seller is bound to do something to the goods for the purpose of putting them into a deliverable state, the property does not pass until such thing is done and the buyer has notice thereof.

    Section 21 SOGA


    Something has to be done in order to ascertain the price
    Something Has to Be Done in order to Ascertain the Price the contract could not be terminated unless the time has lapsed.

    Where there is a contract for the sale of specific goods in a deliverable state, but the seller is bound to weigh, measure, test, or do some other act or thing with reference to the goods for the purpose of ascertaining the price, the property does not pass until such act or thing is done and the buyer has notice thereof.

    Section 22 SOGA


    Future goods sold by description
    Future Goods Sold by Description the contract could not be terminated unless the time has lapsed.

    Where the is a contract for the sale of unascertained or future goods by description and goods of that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the assent of the buyer or by the buyer with the assent of the seller, the property in the goods thereupon passes to the buyer.

    Such assent may be express or implied, and may be given either before or after the appropriation is made

    Section 23 SOGA


    Sale or return
    Sale or Return the contract could not be terminated unless the time has lapsed.

    When goods are delivered to the buyer on approval or ‘on sale or return’, or other similar terms, the property there in passes to the buyer:-

    • When he signifies his approval or acceptance to the seller or does any other act adopting the transaction

    • If he does not signify his approval or acceptance to the seller but retains the goods without giving notice of rejection, then if a time has been fixed for the return of goods, on the expiration of such time, and if no time has been fixed, on the expiration of a reasonable time.

      Section 24 SOGA


    Risk in goods in the case of sale or return
    Risk in Goods in the Case of Sale or Return the contract could not be terminated unless the time has lapsed.

    Risk lies on the seller until the property has passed to the buyer unless the damage or loss is caused by the buyer’s default.


    Law of partnership
    LAW OF PARTNERSHIP the contract could not be terminated unless the time has lapsed.

    PARTNERSHIP ACT 1961 (REVISED 1974)

    THE ACT APPLIES THROUGHOUT MALAYSIA (WEST MALAYSIA AND SABAH & SARAWAK)

    THE PRINCIPLES OF ENGLISH LAW AND THE RULES OF EQUITY WILL ALSO APPLY SO FAR AS IT IS NOT CONTRADICT TO THE EXPRESS PROVISIONS IN THE ACT


    Nature of partnership
    NATURE OF PARTNERSHIP the contract could not be terminated unless the time has lapsed.

    PARTNERSHIP IS THE RELATION WHICH SUBSISTS BETWEEN PERSONS CARRY ON A BUSINESS IN COMMON WITH A VIEW OF PROFIT.

    SECTION 3(1) PARTNERSHIP ACT


    Similar business associations
    SIMILAR BUSINESS ASSOCIATIONS the contract could not be terminated unless the time has lapsed.

    • CO-OPERATIVE SOCIETIES

    • COMPANIES

    • SOCIETIES

    • CLUBS


    Determination of partnerships
    DETERMINATION OF PARTNERSHIPS the contract could not be terminated unless the time has lapsed.

    • THROUGH THE READING OF SECTION 3(1) PARTNERSHIP ACT 1961

    • THROUGH THE READING OF SECTION 4 PARTNERSHIP ACT 1961

    • THROUGH OTHER EVIDENCES AND CIRCUMSTANCES


    Registration of partnership
    REGISTRATION OF PARTNERSHIP the contract could not be terminated unless the time has lapsed.

    EVERY PARTNERSHIP SHOULD BE REGISTERED:-

    - THE REGISTRATION OF BUSINESSES Act 1956

    - CAP. 33 (BUSINESS, PROFESSIONS AND TRADE LICENCING)

    - CAP. 64 (BUSINESS NAMES)

    - TRADES LICENCING ORDINANCE, NO. 16 1948


    Contracts of partnership articles of partnership
    CONTRACTS OF PARTNERSHIP the contract could not be terminated unless the time has lapsed. (Articles of Partnership)

    • GENERAL PRINCIPLES OF CONTRACT WILL APPLY IN PARTNERSHIP

    • THE CONTRACT MAY BE ORAL OR WRITTEN

    • THE CONTRACT MAY CONTAIN DURATION OF PARTNERSHIP

    • THE CONTRACT MAY CONTAIN RIGHTS AND DUTIES OF PARTNERS


    Rights and duties of partners
    RIGHTS AND DUTIES OF PARTNERS the contract could not be terminated unless the time has lapsed.

    IF THERE WAS NO AGREEMENT WITH REGARDS TO THE RIGHTS AND DUTIES OF PARTNERS THE RULES IN SECTIONS 26, 27, 30, 31, 32, AND 33 SHALL APPLY IN THE PARTNERSHIP.


    Written agreement
    WRITTEN AGREEMENT the contract could not be terminated unless the time has lapsed.

    TWO ADVANTAGES OF WRITTEN AGREEMENT:-

    • PARTNERS CAN AGREE NOT TO FOLLOW RULES PROVIDED UNDER THE ACT

    • HEPLS THE COURT WHILE INTERPRETING THE INTENTION OF THE PARTNERS


    Unsuitable rules
    UNSUITABLE RULES the contract could not be terminated unless the time has lapsed.

    • THE EXISTENCE OF A PARTNERSHIP AT WILL – WHERE ANY OF THE PARTNERS CAN GIVE NOTICE TO DISSOLVE A PARTNERSHIOP, EVEN IF ITS BUSINESS IS THRIVING

    • THE DISSOLUTION OF A PARTNERSHIP UPON DEATH OR THE BANKRUPTCY OF APARTNER UNLESS IT HAD BEEN AGREED BETWEEN THE PARTNERS, THE DEATH OR BANKCRUPTCY OF ANY OF THE PARTNERS WILL BRING THE PARTNERSHIP TO AN END, EVEN WHERE THE PARTNERSHIP IS ACTIVELY CARRYING ON A SUCCESSFUL BUSINESS

    • RIGHTS AND LIABILITIES OVER PARTNERSHIP PROPERTY – MAY CREATE PROBLEMS WHERE PARTNERS DO NOT CONTRIBUTE EQUALLY TO THE CAPITAL, AND MAY HAVE NOT MEANT FOR PROFITS TO BE SHARED EQUALLY


    Relation between partners and third parties
    RELATION BETWEEN PARTNERS AND THIRD PARTIES the contract could not be terminated unless the time has lapsed.

    THE BASIS OF THE RELATIONSHIP SHALL BE BASED UPON THE POWER THAT THE PARTNERS HAVE


    Principle of agency
    PRINCIPLE OF AGENCY the contract could not be terminated unless the time has lapsed.

    EVERY PARTNER IS AN AGENT FOR THE FIRM AND HIS OTHER PARTNERS FOR THE PURPOSE OF THE BUSINESS OF THE PARTNERSHIP; AND THE ACT OF EVERY PARTNER WHO DOES ANY ACT FOR CARRYING ON IN THE USUAL WAY BUSINESS OF THE KIND CARRIED ON BY THE FIRM OF WHICH HE IS A MEMBER BIND THE FIRM AND HIS PARTNERS, UNLESS THE PARTNER SO ACTING HAS IN FACT NO AUTHORITY TO ACT FOR THE FIRM IN THE PARTICULAR MATTER, AND THE PERSON WITH WHOM HE IS DEALING EITHER KNOWS THAT HE HAS NO AUTHORITY OR DOES NOT KNOW OR BELIEVE HIM TO BE A PARTNER

    SECTION 7 PARTNERSHIP ACT 1961


    THEREFORE A PARTNER COULD BIND THE FIRM IF THE FOLLOWING CONDITIONS ARE FULFILLED:-

    • THE ACT DONE MUST BE OF THE TYPE OF BUSINESS THAT IS CARRIED OUT BY THE FIRM

    • IT IS CARRIED ON THE USUAL WAY

    • THE THIRD MUST KNOW OR BELIEVE THE PERSON WITH WHOM HE ENTERS INTO THE TRANSACTION IS A PARTNER

    • THE THIRD PARTY MUST NOT KNOW THE PERSON WITH WHOM HE HAS ENTERED INTO THE TRANSACTION HAS NO AUTHORITY NOR THE PERMISSION OF THE OTHER PARTNERS TO ACT ON BEHALF OF THE FIRM


    Contractual liability
    CONTRACTUAL LIABILITY CONDITIONS ARE FULFILLED:-

    EVERY PARTNER IN THE FIRM IS LIABLE JOINTLY WITH THE OTHER PARTNERS FOR ALL DEBTS AND OBLIGATIONS OF THE FIRM INCURRED WHILE HE IS A PARTNER; AND AFTER HIS DEATH HIS ESTATE IS ALSO SEVERALLY LIABLE IN A DUE COURSE OF ADMINISTRATION FOR SUCH DEBTS AND OBLIGATIONS, SO FAR AS THEY REMAIN UNSATISFIED BUT SUBJECT TO THE PRIOR PAYMENT OF HIS SEPARATE DEBTS

    SECTION 11 PARTNERSHIP ACT


    Tortious liability
    TORTIOUS LIABILITY CONDITIONS ARE FULFILLED:-

    WHERE BY ANY WRONGFUL ACT OR OMISSION OF ANY APRTNER ACTING IN THE ORDINARY COURSE OF THE BUSINESS OF THE FIRM OR WITH THE AUTHORITY OF HIS CO-PARTNERS, LOSS OR INJURY IS CAUSED TO ANY PERSON NOT BEING A PARTNER IN THE FIRM, OR ANY PENALTY IS INCURRED, THE FIRM IS LIABLE THEREFORE TO THE SAME EXTENT AS THE PARTNER SO ACTING OR OMITTING TO ACT

    SECTION 12 PARTNERSHIP ACT


    Criminal liability
    CRIMINAL LIABILITY CONDITIONS ARE FULFILLED:-

    CRIMINAL LIABILITY IS A PERSONAL LIABILITY OF THE PARTNER WHO COMMITS THE CRIME

    IN GARRETT V HOOPER [1973] Crim.L.R. 61, LORD WIDGERY STATED;

    ‘THE GENERAL PRINCIPLE IN CRIMINAL LAW IS THAT A PRINCIPAL CANNOT BE MADE LIABLE FOR AN OFFENCE THAT REQUIRES MENS REA SIMPLY BECAUSE HIS SERVANT OR AGENT HAS THE NECESSARY MENS REA’

    CHUN SHIN KIAN V DPP [1980] 2 MLJ 246


    Misapplication of money or property of a third party
    MISAPPLICATION OF MONEY OR PROPERTY OF A THIRD PARTY CONDITIONS ARE FULFILLED:-

    IN THE FOLLOWING CASES, NAMELY;

    A) WHERE ONE PARTNER, ACTING WITHIN THE SCOPE OF HIS APPARENT AUTHORITY, RECEIVES THE MONEY OR PROPERTY OF A THIRD PERSON AND MISAPPLIES IT; AND

    B) WHERE A FIRM IN THE COURSE OF ITS BUSINESS RECEIVES THE MONEY OR PROPERTY OF A THIRD PERSON, AND THE MONEY OR PROPERTY SO RECEIVED IS MISAPPLIED BY ONE OR MORE OF THE PARTNERS WHILE IT IS IN THE CUSTODY OF THE FIRM

    THE FIRM IS LIABLE TO MAKE GOOD THE LOSS

    SECTION 13 PARTNERSHIP ACT


    Liability of incoming and retiring partners
    LIABILITY OF INCOMING AND RETIRING PARTNERS CONDITIONS ARE FULFILLED:-

    • A PERSON WHO IS ADMITTED AS A PARTNER INTO AN EXISTING FIRM DOES NOT THEREBY BECOME LIABLE TO THE CREDITORS OF THE FIRM FOR ANYTHING DONE BEFORE HE BECAME A PARTNER

    • A PARTNER WHO RETIRES FROM A FIRM DOES NOT THEREBY CEASE TO BE LIABLE FOR PARTNERSHIP DEBTS OR OBLIGATIONS INCURRED BEFORE HIS RETIREMENT

    • A RETIRING PARTNER MAY BE DISCHARGED FROM ANY EXISTING LIABILITIES BY AN AGREEMENT TO THAT EFFECT BETWEEN HIMSELF AND THE MEMBERS OF THE FIRM AS NEWLY CONSTITUTED AND THE CREDITORS, AND THIS AGREEMENT MAY BE EITHER EXPRESS OR INFERRED AS A FACT FROM THE COURSE OF DEALING BETWEEN THE CREDITORS AND THE FIRM AS NEWLY CONSTITUTED

      SECTION 19 PARTNERSHIP ACT


    Relation between partners
    RELATION BETWEEN PARTNERS CONDITIONS ARE FULFILLED:-

    THE RELATIONSHIP BETWEEN PARTNERS SHALL BE BASED UPON EXPRESS AGREEMENT

    IF THERE IS NO EXPRESS AGREEMENT THE RELATIONSHIP SHALL BE BASED UPON RULES THAT ARE PROVIDED UNDER SECTION 26 OF THE PARTNERSHIP ACT


    Partnership property
    PARTNERSHIP PROPERTY CONDITIONS ARE FULFILLED:-

    THERE ARE TWO WAYS OF DETERMINING A PARTNERSHIP PROPERTY:-

    1) EXPRESS AGREEMENT

    2) INTENTIONS OF THE PARTNERS

    PONNUKON V JEBARATNAM [1980] 1 MLJ 283


    Other methods
    OTHER METHODS CONDITIONS ARE FULFILLED:-

    • THE PROPERTY WAS ORIGINALLY BROUGHT INTO THE PARTNERSHIP STOCK

    • THE PROPERTY WAS OBTAINED FOR THE FIRM

    • THE PROPERTY WAS OBTAINED FOR THE PURPOSE OF PARTNERSHIP BUSINESSES


    Dissolution of partnership
    DISSOLUTION OF PARTNERSHIP CONDITIONS ARE FULFILLED:-

    • DISSOLUTION BY EXPIRATION OR AUTOMATIC DISSOLUTION

    • DISSOLUTION BY NOTICE

    • DISSOLUTION BY DEATH, BANKRUPTCY OR CHARGE ON HIS SHARE

    • DISSOLUTION BY SUPERVENING ILLEGALITY

    • DISSOLUTION BY ORDER OF THE COURT


    ad