Currie V Misa Case Study

1503 Words7 Pages
Introduction There is no section or legal principle can state the definition for consideration in a contractual element clearly before the case of Currie v Misa in 1875. The case of Currie v Misa (1875) All ER 686has play an important role in consideration. In the year of 1875, there was a company named Lizardi & Co sold four bills of exchanges to Misa. However, Lizardi & Co. was a debtor to a bank firm which owned by Mr. Currie and the company was being pressed for the payment. Then, Misa knew that Lizardi & Co. has stopped payments for the debts and have a lot of outstanding debt, he stopped his bankers not to issue the cheque to the Lizardi & Co. Therefore, the question arise in the case was whether the sales of the company which has an…show more content…
That means the act itself and the promises that was given has no connection to each other. In Malaysia, a past consideration considered as a good consideration where it has stated under Section 2(d) of Contract Act 1950. Therefore, it is sufficient as consideration if the act was done at the desire of the promisor. There was a case which applied past consideration which is Kepong Prospecting Ltd & Ors v Schmidt (1968). This case was happened in 1953 where tan applied to the Government of the state of Johore for a prospecting permit for iron ore. Schmidt was a consultant engineer has assisted him in obtaining a prospecting permit for mining iron ore. After the company has formed, they have entered into an agreement with Schmidt where he will be given 1% of the selling price of the ore that might be sold from any portion of the land for the work that Schmidt has done in assisting to have mining operation started up. However, Schmidt claims that the promises should include before the company has exist as a reward for his contribution as a consultation engineer. Then he brought the case to the court. In the end, Schmidt has won the case because there is a sufficient consideration had moved from Schmidt. The statement “in consideration of the services by the consulting engineer for ang on behalf of the company prior to its formation…show more content…
This has made an account of natural love and affection between parties standing in a near relation to each other. There was a case illustrate the point above. In the case of Re Tan Soh Sim, decreased; Chan Lam Keong & Ors v Tan Saw Keow(1951), the fact was started when Tan Soh Sim was on her death bed and too ill to make a wish then her family decided to sign a document which Khoo and Tan giving up on Tan Soh Sim’ s properties in favor of the four adopted children and Tan Boey Kee because Tan Boey Kee told them that was the intention of Tan Soh Sim. However, the court held that the validity of an agreement is depend on natural love and affection between near relations, relationship and nearness depended on the mores of the group to which the parties belong to and the circumstances of the family which is stated in Section 26 (a) of Contract Act 1950. On the facts of the case, the court found that a Chinese adopted son is related to the family of his adoptive father but a son which is adopt or natural is not nearly related to his adoptive mother. In the end, the court held that the claims of Tan Boey Kee and the four adopted children was not valid because the consideration was not expressed in writing and there was no natural love and affection between

    More about Currie V Misa Case Study

      Open Document