Tutorial question jun 2018 free consent coercion PDF

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Tutorial question (Jun 18) – Jun 2018 Q1 (a)The issues of the problematic question are whether Hadi should cancel or not because of increasing the total purchase price of the house. Which is from the question we can analysis that the question about free consent.The problematic question involved free...

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Tutorial question (Jun 18) – Jun 2018 Q1 (a)

The issues of the problematic question are whether Hadi should cancel or not because of increasing the total purchase price of the house. Which is from the question we can analysis that the question about free consent. The problematic question involved free consent which is S.10(1) contract Act 1950 : “All agreements are contract if they are made by the free consent of parties competent to contract….”. The principle is coercion as defined section 15, “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. The effect of coercion, misrepresentation and fraud, on section 19 (1), 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. Meanwhile, on section 19(2) A party to a contract, whose consent was caused by fraud or misrepresentation, may, if he thinks fit, insist that the contract shall be performed, and that he shall be put in the position which he would have been if the representations made had been true. 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 party whose consent was so caused had the means of discovering the truth with ordinary diligence. A fraud or misrepresentation which did not cause the consent to a contract or the party on whom the fraud was practised, or to whom the misrepresentation was made does not render a contract voidable In the case Chin Nam Bee Development Sdn Bhd v Tai Kim Choo & 4 ors [1988] 2 MLJ 117, The respondent purchased house at a purchase price of $29,500 to be constructed by the appellants. The respondents were later asked to pay an additional $4,000. Thus, it was coercion as defined in section 15. The other case for this question is Allcard v Skinner (1997) 36 Ch D 145, The plaintiff (ages 27) was an unmarried woman in 1867 she sought a clergyman as a confessor. In 1871 she became a full member of the sisterhood in which he was the spiritual director, She too vows of poverty, chastity and obedience and without any independent advice made gifts of money and stocks to the mother superior of the sisterhood. She left the sisterhood in 1879 and claimed for the return of the stocks in 1884. The court was held the plaintiff’s gifts were voidable due to undue influence, but she was not entitled to recover due to her conduct and delay. In this question, Hadi was booked house from Along Holding Sdn Bhd at a of price RM240,000 , after two weeks of payment, the price increasing to RM 290,000. Therefore, because of increasing, Hadi was refused to pay the remaining charge, at the same time Along Holding Sdn Bhd threatened to cancel his booking for the said house Since, Along was made an offer, and the offer was accept by Hadi, therefore the contract between them is occur, but the increasing of price Hadi was cancel the contract. After that, on the question it was state that Along Holding Sdn Bhd threatened if Hadi cancel the contract between them, the house book will cancel also. To conclude, whether Hadi must pay for RM 50,000 more and not refuse. In my opinion, there was clear that Along Holdings Sdn Bhd has threating Hadi to pay RM 50,000 and threatening him and it was related with coercion which is in section 15. If Hadi want to cancel the contract

between Along Holding Sdn Bhd, Hadi has to be done as soon as possible or the right to cancel the contract will be lost....