Saturday, 20 August 2011

Consent (Kelulusan/kebenaran)

Section 14, Contract Act 1950,

Consent must be free from :

1. Coercion (menghalang/halangan)
2. Undue influence (not affected by age, illness, mental, body distress.
3. Fraud (with the intent to deceive the other contracting party)
4. Misrepresentation (an untrue statement made by representor and that induces the other party to enter into a contract.
5. Mistake (by law, document and fact)

  • Coercion is the act of committing or threatening to commit any act forbidden by the Penal Code, with the intention to make the other party enter into a contract.
  • The effect of a contract made under coercion is voidable.
  • To establish a contract made under undue influence requires the elements of domination of will and obtaining unfair advantage.
  • The burden of proving that the contract is not induced by undue influence is on the person dominating the will of another.
  • The presumption of undue influence can be rebutted by proving the other party taking independent legal advice.
  • Contracts made under undue influence will become voidable.
  • Fraud covers an act committed by one contracting party with the intent to deceive another.
  • Mere silence is no fraud.
  • Failure by one party to speak out will amount to fraud if there is a duty of disclosure.
  • Element of fraud makes the contract voidable.
  • A contract under fraud is not voidable if the party being fraud had the means of discovering the truth with ordinary diligence.
  • A false statement which does not induce or cause the party to enter into a contract does not render the contract voidable.
  • Innocent misrepresentation in a contract is not made with the intention to deceive but the contract is voidable.
  • Mistake of fact will render a contract void if it is a common or mutual mistake.
  • Unilateral mistake does not render a contract voidable.
  • A contract made under a mistake of law in force in Malaysia is not voidable.
  • A contract which is void under a mistake of fact requires the party who has received the advantage to restore it to the other party.
  • The defence of non est factum is accepted in mistake cases but in exceptional circumstances.
  • Remedy of rectification is allowed in a contract made under mistake.

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