Introduction Misrepresentation is a form of distortion whereby a person is persuaded to enter into a contract entirely or partly by a false statement of fact, not opinion or intention made by the other contracting part. According to Law of Contract misrepresentation refers to a false statement of past or present fact, not law or opinion, made by one party to another before or at the time of the contract concerning some matter or circumstance relating to it . A misrepresentation may be made fraudulently, negligently, or non‐negligently (innocently). The Consequences of Misrepresentation • Cancellation of contract on the ground of fraudulent misrepresentation. Therefore in this case the cancellation of the contract may be due to fraudulent misrepresentation
INTRODUCTION: Mental, moral, or physical domination that deprives a person of independent judgment and substitutes another person’s objectives in place of his or her own .Exercise of undue influence is characterized often by excessive insistence, superiority of physical power, mind,or will, or pressure applied due to authority, position, or relationship in relation to the strength of the person submitting to it. Consent obtained for a contract, relationship, or transaction is voidable if it can be shown that an unfair advantage has been taken of an involved party. DEFINITION: Undue Influence is defined as,- (1) A contract is said to be induced by “undue influence” where the relations subsisting between the
Condition and warranties are very different in contract. Condition is a term of the contract which is a necessary issue, in the sense that any breach will allow the other party to abrogation. Warranties is less important terms which are secondary to the main purpose of the contract (Topic 2: Contract Law, p37-38 ). The difference between these is of fundamental importance in assessing whether a failure to perform them represents a breach of contract. The innocent party’s rights in response to a breach of a term depend on how serious or fundamental the actual breach is.
For example contractual provisions are to be interpreted in the context of the entire agreement of the parties. A common error is to read the literal content of a single provision and not interpret the meaning of the provisions as part of the entire agreement. It is important to understand that not all contractual provisions are enforceable in accordance with their literal interpretation. A good example of this in the legal definition of
There are times when unforeseen supervening events occur without fault of either contracting party and render performance of the contract impossible or radically different from what the parties contemplated when they enter into it. Subsequently leading the Courts to call in frustration and discharge the contract irrespective of the parties’ wishes. Due to its radical impact towards the contracting parties, the threshold of ‘impossibility’ is set very high by the Courts thus frustration of contracts is of limited practicability. The definition of ‘impossibility’ has widely been criticized unclear and uncertain as the Courts tend to interpret it extremely narrowly. In respect of justice and certainty of the rule of law, it is essential for the courts to act in this way.
The consideration given does not have to be fair. Bargain by one party to the contract in terms of the quantity of compensation is not subjected to legal court intervention unless there exists fraud or unacceptable conducts. Consideration, therefore, acts as the value of a contract. It brings the difference between a mere gift and a contract as the former is a voluntary act, and its breaching is not enforceable in the law courts. The only exception to the consideration rule is for the goods of a seal.
It comprises of obligations from a mutual agreement and intent to promise, which have not been communicated in words. It is misleading to label as an implied contract one that is implied in law because a contract implied in law does not have the requirements of a true contract. Quasi-contract is a more fitting representation of contracts implied in law. Implied contracts are as binding as express contracts. An implied contract depends on substance for its existence.
Under English Law, the two elements “domination” and “a relationship between trust and confidence” are totally different from Malaysia Law. In English Law, “domination” is more relevant to a cases that related to actual undue influence, but not associated to presumed undue influence cases. Since that if a person who falls within the explanation laid down under sub-section (2) of Section 16 which includes a person who” place in a fiduciary relationship to the other”, a person consider to be in a situation to dominate the will of the other which stated in Section 16 of the Contracts Act. A person upon whom the complainant has be placed trust and confidence is regard under sub section (2) of Section 16 as the dominating party for the purpose of sub section (1) and sub section (3) of Section 16 of the Contracts
a) Termination of contract, rescue from insolvency and liquidation: - Termination of contract Termination of contract is considered to be lawful when a legitimate reason happens to end of the contract before performance has been completed. This contract call as the terminate contact is because the contract has become legally responsible under the law in the Malaysia and cannot be fulfil their stipulator duties. When this contract is failure to perform, then this contract will be result in breach of contract lawsuit or other legal liabilities. But, it also can be legally terminated before the contractual duties have been fulfilled. Factors vitiating the contract to become voidable i) Coercion Under Section 15 Contracts Act 1950, when a person is persuasive by another to do some action like using the actual or endangered physical violence, psychological pressure, threats, economic duress or the bringing of unfounded criminal proceeding against him.
ISSUE The issue here is if there has been a misrepresentation made in the contract between Mr Smith and Mr Jones. LAW A contract is a legally binding or valid agreement between two parties. The law will consider a contract to be valid if the agreement contains all of the following elements: offer and acceptance; an intention between the parties to create binding relations; consideration to be paid for the promise made; legal capacity of the parties to act; genuine consent of the parties; and legality of the agreement. Statements made over the course of negotiation could amount to either a contractual term, or a misrepresentation. If the statement amounts to a term in the contract, and it is not fulfilled, the innocent party can then sue for