Section 15 CA 1950: "Coercion is thecommitting or threatening to commit anyact forbidden by Penal Code, or unlawfuldetaining any property, with the intentionof causing any person to enter into anagreement."

CASE: KESARMAL s/o LETCHMAS DAS vVALIAPPA CHETTIAR (1954)

Section 16(1) CA 1950: "A contract is said tobe induced by "undue influence" where therelations subsisting between the parties aresuch that one of the parties is in positionto dominate the will of the other and usesthat position to obtain an unfair advantageover the other"

Elements of undue influence

Elements of fraud

Effect of fraud in contract

Section 17 CA 1950: "Fraud include anyfollowing acts committed by a party to acontract with intent to deceived otherparty: a) the suggestion as to a fact, whichis not true; b) the active concealment of afact; c) a promise made without anyintention of performing it; d) any other actfitted to deceive; e) any such act the lawspecially declares to be fraudulent."

CASE: DERRY v PEEK (1889)

Elements of misrepresentation:

Section 18 CA 1950: "Misrepresentationincludes: a) The positive assertion, which isnot true, though he believes it to be true; b)any breach of duty which, without an intentto deceive by misleading another to hisprejudice; c) causing , however innocently, aparty to an agreement to make a mistakeas to the substance which is subject of theagreement."

Elements of mistake

Effect of mutual mistake in contract

Unilateral mistake

Section 21 CA 1950: "Where both parties toan agreement are under a mistake as to amatter of fact essential to the agreement,the agreement is void."

Promise in return to a promise : it is when aperson promise to do something in returnfor his promise the other party promises todo something.

Section 24 CA 1950

CASE: K.MURUGESU v NADARAJAH

Performance of an act in return to apromise: It is when the other partyperforms the act as required by promisor.

CASE: CARLILL v CARBOLIC SMOKE BALLCO (1893)

Past act in return to a promise:Consideration complete before the promiseis made.

CASE: LAMPLEIGH v BRATHWAT (1615)

CASE: KEPONG PROSPECTING LTD vA.E.SCHMIDT (1968)

Section 26 CA 1950

CASE: RE TAN SOH SIM (1951)

CASE: J.M.WOTHERSPOON & CO LTD vHENRY AGENCY HOUSE (1962)

CASE: PHANG SWEE KIM v BEH I HOCK(1964)

CASE: BOLTON v MADDEN (1873)

CASE: VENKATA CHINNAYA vVERIKATARAMAYA

A. English Law

B. Malaysian Law

Methods of Waiver of Performance

1. An adult

2. Sound mind

3. Not disqualified from contracting by anylaw.

1. Minor or children

2. Insane or drunken person

3. Bankrupts or insolvents

Section 7(a) CA 1950: "The acceptance mustbe absolute and unqualified."

CASE: HYDE v WRENCH (1840)

CASE exceptions: STEVENSON JAQUES vMCLEAN (1880)

Section 7(b) CA 1950: "... the acceptancemust be expressd in some usual andreasonable manner, unless the proposalprescribes the manner in whhich it is to beaccepted... " ; "... if the proposal prescribes amanner and the acceptance is not made inthat manner, the proposer may, within areasonable time.., insists the prescribesmanner bbut if he fails to do so, he acceptsthe acceptance."

CASE: ELIASON v HENSHAW (1819)

CASE: WETTERN ELECTRIC v WELSHDEVELOPMENT AGENCY (1983)

Section 3 CA 1950: "The communication ofacceptance are deemed to be made by anyact of the party , which he intends tocommunicate the acceptance."

CASE: POWELL v LEE (1908)

CASE: FRASER v EVERETT (1889)

CASE: FELTHOUSE v BINDLEY (1862)

Unilateral Contract: When offeror dispensedwith or waived the need of communicationof acceptance.

General Offer: When there is an offer to thepublic

Reciprocal Promises: Form theconsideration for the promiseseach other party to thecontract

Acceptance through post: Acceptancethrough post complete when the letter ofacceptance is posed, even though it notcome to the actual knowledge by theofferor.

CASE: GUTHING v LYNN(1831)

Section 2(a) CA 1950 and Section 4(1) CA1950 : "The communication of proposal iscomplete when it comes to the knowledgeof the person to whom it is made."

CASE : TAYLOR v LAIRD (1856)

CASE: R v CLARKE (1927)

CASE: HARRIS v NICKERSON (1873)

CASE : COELHO v THE PUBLIC SERVICESCOMMISSION (1964)

CASE: CARLILL v CARBOLIC SMOKE BALLCO (1893)

CASE: PHARMACEUTICAL SOCIETY OFGREAT BRITAIN v BOOTS CASH CHEMISTLTD (1953)

CASE: FISHER v BELL (1960)

CASE: SPENCER v HARDING (1870)

CASE: HARVEY v FACEY (1893)

CASE: PRESTON CORPORATION SDN BHDv EDWARD LEONG & OTHERS

Section 10 of the Auction Sales Act: "A salebu public auction shall be complete whenthe auctioneer announces its completion bythe fall of the hammer..."

CASE: PAYNE v CAVE (1789)

1. By communication of notice ofrevocation

2. Revocation by lapse of time

3. Revocation by failure of the offeree tofulfill a condition acceptance.

4. Revocation by death or mental disorderof the offeror.