Zahid Case Study - Law Assignment Help

Assignment Task:

1.(a) Zahid promised to transfer his rights of ownership in his bungalow to his first wife Tina, If Tina completed the payment of the instalments due. Tina wrote a letter and asked Zahid to sign, and he did sign the letter agreed to transfer his bungalow to Tina. When Tina completed the payments, Zahid, on the persuasion of his second wife, Rosa now refuses to fulfill his promises.  Tina wishes to take action against her husband for breach of contract.  Advise Tina. 

Contract caused by the mistake of one party as to the matter of fact
2. A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact.
What considerations and objects are lawful, and what not
3. The consideration or object of an agreement is lawful, unless—

(a) it is forbidden by law;
(b) it is of such a nature that, if permitted, it would defeat any law;
(c) it is fraudulent;
(d) it involves or implies injury to the person or property of another; or
(e) the court regards it as immoral or opposed to public policy.
In each of the above cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

ILLUSTRATIONS

(a) A agrees to sell his house to B for RM10,000. Here, B’s promise to pay the sum of RM10,000 is the consideration for A’s promise to sell the house, and A’s promise to sell the house is the consideration for B’s promise to pay the RM10,000. These are lawful considerations.

(b) A promises to pay B RM1,000 at the end of six months, if C, who owes that sum to B, fails to pay it. B promises to grant time to C accordingly. Here the promise of each party is the consideration for the promise of the other party, and they are lawful considerations.

(c) Promises, for a certain sum paid to him by B, to make good to B the value of his ship if it is wrecked on a certain voyage. Here A’s promise is the consideration for B’s payment, and B’s payment is the consideration for A’s promise, and these are lawful considerations.

(d) A promises to maintain B’s child and B promises to pay A RM1,000 yearly for the purpose. Here the promise of each party is the consideration for the promise of the other party. They are lawful considerations.

(e) A, B and C enter into an agreement for the division among them of gains acquired, or to be acquired, by them by fraud. The agreement is void, as its object is unlawful.
(f) A promises to obtain for B an employment in the public service and B promises to pay RM1,000 to A. The agreement is void, as the consideration for it is unlawful.

(g) A, being an agent for a landed proprietor, agrees for money, without the knowledge of his principal, to obtain for B a lease of land belonging to his principal. The agreement between A and B is void, as it implies a fraud by
concealment, by A, on his principal.

(h) A promises B to drop a prosecution which he has instituted against B for robbery, and B promises to restore the value of the things taken. The agreement is void, as its object is unlawful.

(i) A’s estate is sold for arrears of revenue under a written law, by which the defaulter is prohibited from purchasing the estate. B, upon an understanding with A, becomes the purchaser and agrees to convey the estate to A upon receiving from him the price which B has paid. The agreement is void, as it renders the transaction, in effect, a purchase by the defaulter, and would so defeat the object of the law.

(j) A, who is B’s advocate, promises to exercise his influence, as such, with B in favour of C, and C promises to pay RM1,000 to A. The agreement is void, because it is immoral.

(k) A agrees to let her daughter to hire to B for concubinage. The agreement is void, because it is immoral, though the letting may not be punishable under the Penal Code.

Agreement without consideration, void, unless—

4. An agreement made without consideration is void, unless—

it is in writing and registered

(a) 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;

or is a promise to compensate for something done

(b) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or

(c) Bob, a manufacturer of pharmaceutical products, advertised his medicine ‘Sera’ in the Berita kesihatan during an epidemic of hand and foot disease.  He advertised that a sum of RM600 will be paid to anyone who still contracts the hand and foot disease despite having used the ‘Sera’ medicine according to the prescription given.

The advertisement also stated that Bob had deposited a sum of RM50,000 in Bank Baru for this purpose.Manan bought a bottle of ‘sera’ and used it according to the prescribed method, but still contracted the disease.
Advise Manan.

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