Contract Act 1950 Case Study

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Introduction In order for an agreement to come into existence, there must be a clear and unequivocal offer and acceptance. However, the existence of an agreement itself does not dictate the presence of a legally binding contract. To enforce an agreement, parties must prove the existence of an intention to create legal relations as well as consideration between the parties and lastly whether the parties have capacity to contract. In the given question, the issue is whether a person who is a minor or underage can legally enter into a contract that will bind the contracting party. This issue will be resolved by applying the principles of contract law in particular the Contract Act 1950 as it deals with the Malaysian position. General Application…show more content…
Contracts for Necessaries There is no statutory definition as to what amounts to necessaries. However, it is generally accepted that things such as food, clothing, shelter and medical attention will fall within the definition of necessaries. Where a minor has been supplied with such necessaries, and the minor does not pay, then the person supplying such necessities to the minor will be able to claim for it from the property of such incapable person – Section 69 Contract Act 1950. Further, in order to be successful in a claim against the minor, the supplier need to prove that the goods supplied of is one which suits the minor’s condition in life. Therefore, what amounts to necessity is a question of fact that needs to be addressed on each given case and must be matched with the minor’s station in life. This principle was established in the case of Nash v Inman. In this case, a minor, Inman ordered 11 waistcoats from a tailor and later refused to make payment. The Court held that the waistcoats were not necessaries to his station in life and therefore the contract was void. There are 2 interpretations to…show more content…
A persons must be 18 years and above (except for contract of necessaries, contract of scholarship, contract of insurance, contract of apprenticeship or service and contract for marriage, divorce, dower and adoption), of sound mind and not disqualified from contracting. References Text Books Alsagoff, S. A. (2010). Principles of the Law of Contract in Malaysia (3rd ed.): LexisNexis Malaysia Sdn Bhd. Fong, C. M (2010). Contract Law In Malaysia: Sweet & Maxwell Asia a division of The Thompson Corporation (M) Sdn Bhd. PLC0015 Commercial Law (Multimedia University) Notes; Topic 2: Contract Law. Miss P. It's Law [Minors' Capacity To Contract]. Retrieved from Wu M. A. & Vohrah, B. (2012). The Commercial Law of Malaysia (2nd ed). Selangor: Pearson and Longman Statute Laws Contract Act 1950 Age of Majority Act 1971 Contracts (Amendment) Act 1976 Insurance Act 1996 Children and Young Persons (Employment) Act 1966 Cases Government of Malaysia V Gurcharan Singh & Ors (1971) 1 MLJ 211 Mohori Bibee v Dhurmodas Ghose LR 8 Exch 132 Nash v Inman (1908) 2 KB 1 Rajeswary & Anor v Balakrishnan & Ors. (1958) 3 MC 178 Tan Hee Juan v The Boon Keat (1934) MLJ

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