Premium Essay

Business Law - Law of Contracts

In: Business and Management

Submitted By ishasams
Words 991
Pages 4
LAW OF CONTRACT: VOIDABLE CONTRACT

A formal agreement between two parties that may be rendered unenforceable for a number of legal reasons. Reasons that can make a contract voidable include failure by one or both parties to disclose a material fact. Circumstances or features that make a contract voidable include coercion, undue influence, fraud, misrepresentation and mistake.

Based on our case review, we more focus on voidable contract under undue influence. In section 16 has defined undue influence a contract is said to be induced by undue influence when the relationship between parties is such that one party is able to dominate his will on the other and uses that position to gain unfair advantage. In particular and without prejudice to the generality of the foregoing principle, a person is deemed to be in a position to dominate the will of another:
a) Where he hold a real authority over the other.
b) Where he makes a contract with a person whose mentally capacity is temporarily or permanent.

In section 16(2) implied or provide with example that in certain situation, a person is deemed to be in the position of dominating the will of the other if:
• If the person holds a real or apparent position of power.
• If stands in a fiduciary relationship with the other.
• If the other person is mentally weak because of sickness, disease, or economic distress. ISSUES OF CASE

There are three issues raised in this question. They are:

1) Whether induced by undue influence.

2) Whether plaintiff was in position to dominate the will of the defendants and had obtained an unfair advantage by using that position.

3) Whether undue influence induced by a person not a party to the contract. This case is under contract act 1950, in section 6.

FACT OF CASE

MALAYSIAN FRENCH BANK BHD v ABDULLAH BIN MOHD YUSOF & ORS is the case about an...

Similar Documents

Premium Essay

Business Law Contracts

...LAW CASE STUDY (Topic-2) "The core idea of negligence is that people should exercise reasonable care when they act by taking account of the potential harm that they might foreseeably cause harm to other people.”[1] INTRODUCTION: In this particular case are there many contractual terms that are used. So, to solve this case or before giving any judgement, we need to define these terms and gain sufficient knowledge about them. The first and the most important thing we need to know is: What is a contract? A contract is an agreement which is enforceable by the court of law. For a legal contract there has to be an offer and its acceptance. “Acceptance occurs when the party answering the offer agrees to the offer by way of a statement or an act. Acceptance must be unequivocal and communicated to the offer or the law will not deem a person to have accepted an offer merely because they have not expressly rejected it. Some modifications to the rules of offer and acceptance have been made to protect consumers by sections 18 and 41 of the Competition and Consumer Act 2010 (Cth) schedule 2 Australian Consumer Law (“ACL”) for example, invitations or offers to purchase cannot be misleading or deceptive.[2] Thus acceptance is a very important concept of contracts. Generally a valid contract has acceptance. The different types of contracts are: Formal Contracts and Simple Contracts....

Words: 1882 - Pages: 8

Premium Essay

Business Law - Law of Contracts

...LAW 3235 SEM 2 2013/2014 QUESTION ‘’ Syariah court has no legitimacy for non-muslim’’ Discuss the jurisdiction of Syariah court and civil court in Malaysia. INTRODUCTION Position of syariah court in Malaysia Syariah refers to Sharia law in Islamic religious law and deals with exclusively Islamic laws, having jurisdiction upon every Muslim in Malaysia. The dual-system of law in Malaysia is provided for in Article 121(1A) of the Constitution of Malaysia.The Syariah Court system is one of the two separate system of courts which exists in Malaysian legal system. There is a parallel system of state Syariah Court, which has limited jurisdiction over matters of state Islamic law (Shariah). The Syariah Courts have jurisdictions only over matters involving Muslim, and can generally only pass sentences of not more than three years imprisonment, a fine of up to RM5,000, and/or up to six strokes of the cane. Article 145 of the constitution says the Attorney General of Malaysia has no power over matters related to the Sharia courts. There are three levels of the courts: Appeal, High and Subordinate. Unlike the civil courts in Malaysia, which is a federalised court system, the Syariah Court is primarily established out of state law. Similarly syariah or Islamic law is a matter of state law, with the exception of theFederal Territories of Malaysia, as provided in Article 3 of the Constitution. Thus syariah law in one state might differ to that of another state....

Words: 2400 - Pages: 10

Premium Essay

Business Law and Contracts

...Business law and contracts Introduction There are quite a number of business entity that are lead and regulated by various laws.Theselawsensures that each business operates within its jurisdictions. In running a business, one has to deal with various types of contracts with other businesses or different individuals. Whatever types of businesses that one dealin, understanding of business contracts is an essential part of running a business and making sound agreements that can be defended in a court of law in the case that one party defaults on their original profit. Contracts governance by common law or the Uniform Commercial Code (UCC). A contract can be defined as an enforceable legal agreement undertaken by two or more parties, corporate or individuals that necessarily creates an obligation between the parties to do or not to undertake certain things (Brullote, n.d). In many countries, business and individual contracts are majorly guaranteed by two laws: the Uniform Commercial Code abbreviated as UCC and the common laws each having its distinct jurisdiction. To transact business properly, it is required that one understands both contracts (Brullote, n.d). Common laws contracts are those contracts that are controlled by a set of rules that are established by various states. These are traditionally basedlaws that are set by thelegislature and are always being changed to suit the various changes n business environments....

Words: 2646 - Pages: 11

Premium Essay

Business Law Contract Paper

...CONTRACT REVIEW ASSIGNMENT Instructor: Barb Eccles Business Law 3051-FA Matthias Majerczyk Due Date: Tuesday, November-27-2012 BigCo Agreement for Exchange of Confidential Information 2) Most people who have positions in a corporation are employees under the legal entity. So, therefore Really Smart Guy is the Vice-President and an employee of BigCo Limited. BigCo can use confidential draft patent application and some confidential information to compete with III. This is according to paragraph 4, “BigCo can use III’s ideas, concepts, know-how and techniques for its own business activities to compete with III, only if III’s Information is retained in the memories of BigCo’s employees who have had access to the Information under the BigCo Confidentiality Agreement.” BigCo was also given a draft business plan. BigCo cannot use the business plan to compete with III according to paragraph 4, “nothing gives the BigCo the right to disclose, publish or disseminate the business plans of III” 3) BigCo can terminate its agreement with III by providing a one month’s written notice BigCo. III’s and BigCo’s obligations for disclosing information will extend beyond the termination and will remain in effect until fulfilled. The Survival clause is really weird and it conflicts with the Confidentiality Period on paragraph 3....

Words: 1120 - Pages: 5

Premium Essay

Business Law on Luxury Goods - Contract Void or Valid?

...First of all, the Law of Contract has been defined as an agreement which is legally binding between the both of parties. A contract simply means an agreement between the parties however the agreement has some important element within as it alone does not stand to have a binding contract. In a contract, there should have all the elements as proposed which will be offer, acceptance of offer, consideration, intentions to create legal relations, capacity, consent, legality and possibility of performance. In this particular situation, the element of capacity is lacking in this contract. Capacity to a contract defines us that parties in a contract must have the capacity to make a contract. In a simpler way, capacity is referred as legal ability to enter into a contract and the law generally states that everyone has the capacity to a contract except for certain circumstances which will be discussed in the following paragraph. Phing is 17 and underage, which makes her legally ‘incapable of capacity’ due to her minor status, and therefore any contracts made by Phing would be void ab initio except for certain exceptions, such as contracts for necessaries, scholarship contracts and insurance contracts. Section 11 of the Contracts Act 1950 is about contracts entered into by those who have no capacity. This section states that a person must satisfy the age of majority according to the Section 2 of the Age of Majority Act 1971 to which the person is subjected to....

Words: 842 - Pages: 4

Premium Essay

Legal Aspects of International Business.Doc

...The formation of a contract Main points that need to be addressed: • Agreement: who decides that an argreement has been reached (objective/ subjective approach) • Offer and acceptance: offer of invitation, display of goods, advertisements etc leading to acceptance • Certainty and agreement mistakes • Consideration and form • Intention to create legal relations: domestic and social, commercial agreements • Third party rights • The content of a contract: creation and classification of contractual terms, exclusion clauses INTERNATIONAL CONTRACT LAW Laws covering trade between businesses in different countries have existed since the law merchant was born in the medieval period. As business has grown across national borders and business relations have...

Words: 2092 - Pages: 9

Premium Essay

Laws That Affecting Business

...Assignment Topic: Laws that Affecting Business Name: Sumon Roy ID: 4050 MBA (Evening Program) Department of International Business University of Dhaka Submission Date: Saturday, 17th May 2010. Table of Contents: Contents | Page | Introduction | 1 | Definition of Business, Law & Business Law | 2 | Sources of law | 3 | Different laws affecting business | 6-11 | Laws regarding commerce in Bangladesh | 12 | Laws regarding Industry in Bangladesh | 13 | Conclusion | 14 | Introduction: In the present world business plays an important role in every sphere of life. Business determines one’s life style, standard of living, education and even cultural standard. So to lead a bette-r life we need to understand business and study business. Business is dynamic – always changing. Coping with both predictable and unpredictable events can be easier, more efficient, and less traumatic if we understand business. Study of business will help us to understand that today national economies are no more independent entities rather interdependent and taking an uniform global shape, economic depression in U.S.A. has an impact on the whole world, business and global warming are not different issues, war in Iraq or Afghanistan has some kind of link with business, China becoming a factor in the world economy because of excellent business skill and the system known as “Free Enterprise”....

Words: 2215 - Pages: 9

Premium Essay

Castomer Satisfaction in Commercial Bank

...Law 1. Define company? How many kinds of companies? Distinguish between private Ltd. and public Ltd. company. 2. What is Memorandum of Association? What are the elements of Memorandum of Association? What are the stages in the formation of a company? 3. What is capital? Describe briefly the source of companies’ capital? Define share? Describe briefly the classification of share? 4. Define contract? Describe briefly the essential elements of contract? Define Law? Describe briefly the classification of law? 5. Define partnership? The essential elements of partnership? Classes of partners and classes of partnership? 6. Short Notes: a) Article of Association. b) Difference between Memorandum of Association and Article of Association. c) Authorized Capital. d) Paid-up capital. e) AGM f) EGM. Q: What is contract? Describe the elements of contract? Ans. Section 2(h) of the Contract Act, 1872 provides that, “An agreement enforceable by law is a contract.”Therefore, in a contract there must be (1) on agreement and (2) the agreement must be enforceable by law. Agreements which are not enforceable by law they are not contract. Elements of contract: The essential elements of a contract are explained below: (1) Offer and acceptance: There must be a lawful offer by one party and a lawful acceptance of the offer by the other party or parties. “Lawful” implies that the offer and acceptance must conform to the rules laid down in the contract act 1872....

Words: 2106 - Pages: 9

Premium Essay

Aspect of Contract

...Introduction: Simply, law can be explained as a collection of rules which are mainly created by a particular state or state government & the state, as an authority, is responsible for enforcing the law made within its jurisdiction via using various kind of sanction. While talking about law we should have a clear idea about three basic concept power, fascination & importance.Sources of law are also importance which can be constitutions, statue, common law, administrative law, equity etc. In business world, we use different kinds of law & law of contracts is one of the most widely used business law which is basically used to understand future business related The Aspects of Contracts & Negligence for Businessissues in more predictable manner by people engage in contracts. Contract is basically a promise that gives the official commitment that the law will be enforced.Judicial activism, which creates law to be less predictable & more flexible, & judicial restraint, which makes law more predictable & less flexible, is two important issues closely related to contracts that need to be defined properly....

Words: 1731 - Pages: 7

Premium Essay

Contract Law

...CONTRACT LAW KENNETH D ROBINSON JR BUSINESS LAW 311 GARY GENTRY 9 JUNE 2014 Abstract A Body of law that governs oral and written agreements associated with exchange of goods and services, money, and properties is recognized as contract law. Contract law includes topics such as the nature of contractual obligations, limitation of actions, freedom of contract, privity of contract, termination of contract, and covers also agency relationships, commercial paper, and contracts of employment. Contract law is one of the many different aspects of business law and must be understood in the world of law. From valid contracts, to voidable, enforceable and unenforceable contracts they must all be understood and taken into account. If you were starting a business you would first need to know what contract law is, its history and why is in important in the world today. CONTRACT LAW Over the last several of weeks since announcing it was banning Los Angeles Clippers owner Donald Sterling for life, The NBA has had hopes of getting approval from the league's owners to force him to sell the team, little has been known of the NBA's exact legal strategy....

Words: 2553 - Pages: 11

Premium Essay

Business Contract Protocol

...Week 5 Final Paper Betty Poppins Bus 311 Instructor Brandy Krectzburg 7/01/13 Business Contracts: Protocol, Laws & Ethicality There are various kinds of contracts which arise within our business world today; contracts are an essential component to business livelihood. Although a contract is an agreement, not all agreements are valid contractual obligations. In order for any contract to be an official and legally binding agreement, there are essential requirements which must first be fulfilled. Because contracts are vital to the organization and its success, it is important that the organization has an inclusive understanding of the inner workings of business contract and law and sustaining ethicality within these agreements; this will help ensure that each and every business transaction is a smooth and successful endeavor from beginning to end. What is a contract, and what makes it valid? According to Essentials of Business Law, by Susan Rogers (2012), a contract is described as being “a legally enforceable agreement between two or more people.” Therefore, a contract emerges from the voluntary consent of two or more people with mutual accordance to enter into this agreement. Contracts are helpful to business, as these agreements are binding to both parties involved. In order for a contract to be a valid and binding agreement there are five fundamental yet essential elements that must be present, and these are: 1. The Offer, 2. The Acceptance, 3....

Words: 2880 - Pages: 12

Premium Essay

Role and Function of Law

...Contract law fulfills and facilitates...

Words: 784 - Pages: 4

Premium Essay

Jemima Laryea

...Regent University College of Science & Technology, Accra, Ghana CORPORATE AND BUSINESS LAW I—Course Outline Instructor: Professor Charles O. Kwarteng References Materials Books Required: K. Adjei-Mensah, Principles of Business Law, Volume ONE (ISBN 9988-0-0944-5). (good for business law) Recommended. K. Adjei-Mensah, Principles of Business Law, TWO (ISBN 9988-0-0945-3) (good for companies) . Internet Materials: www. kkaufhold.net/files_/Bussiness_Law_Outline 2.pdf (good outline for business law) www. Ekconsultinggroup.com/assets/resources/Business_Law_Notes.pdf (good outline for company law) OUTLINE 1. Sources of Law a) Constitutional Law b) Statutory Law (Ghana Company Code) c) Executive Decisions: Executive Decrees, Proclamations, Orders Judicial Decision-Case Law: Doctrine of Stare Decisis (Salomon v Salomon) Treatises of Eminent Jurists Restatement of Torts/Restatement of Contracts International Law Treaties (Bilateral and Multilateral). Compare AGOA (Ghana and US) and ECOWAS Treaty (West African sub-region). Readings: Adjei Mensah, Principles of Business Law, Volume I, Part 3 2....

Words: 717 - Pages: 3

Premium Essay

Law Outline

...JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY MOMBASA CBD CAMPUS BACHELOR OF BUSINESS INFORMATION TECHNOLOGY YEAR 1 SEM II BACHELOR OF SUPPLY CHAIN MANAGEMNT YEAR I SEMESTER II BACHELOR OF PURCHASING AND SUPPLIES MANAGEMNT YEAR 1 SEM II HBC 2112 BUSINESS LAW 1 HPS 2204 BUSINESS LAW 1 Lecturer: Jean Mzera Uzel 0721586918 EMAIL Jeanmzera@yahoo.com Introduction This unit is designed for business students to give them a focus in law in the society and business environment. It deals with a panorama of the most important activities in the business law which will enable them to understand and function effectively in today’s business environment. Course target The target group for this unit is the undergraduate students pursuing the business studies as a course. Course delivery This course will be administered using lectures and group discussions. The students’ participation in group assignments will contribute to their final course grade. Learning outcomes By the end of this unit, it is expected that the students will be able to: * Identify the entities involved in business law * Know the criteria that company managers can use to make business law decisions. * Appreciate the sources of law in Kenya and constitution making * Appreciate the law of persons, law of contract, law of tort, law of agency and negotiable instruments and their respective applications in the business environment....

Words: 660 - Pages: 3

Premium Essay

Business Entities

...The owner is now considering changing the business entity, but he does not know what entity to form or how to form it. The owner has asked me to do the following: * Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why. * Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract. * Explain the...

Words: 1327 - Pages: 6