Page 57 - PRINCIPLE OF LAW- FINAL (eISBN) pdf
P. 57

Politeknik Kota Bharu



                  2.1.2  CONSIDERATION

                           ✓  Clause 2d

                           ✓  ‘The price of a promise’ and it is a requirement for a contract

                                under common law.

                           ✓  Valuable  consideration:  some  right,  interest,  profit  or

                                benefit  accruing  to  the  one  party,  or  some  forbearance,

                                detriment,  loss,  or  responsibility  given,  suffered,  or

                                undertaken by other.

                           ✓   Principle rules of consideration:

                                  a.  Agreement without consideration is null and void.

                                  b.  Consideration must be sufficient but not be adequate.

                                  c.  Consideration must not be from past.


                         Consideration must move from the promise

                             ▪  Intention to create legal relation.

                             ▪  Readiness of each party to accept the legal consequences if

                                he does not perform his contract.

                             ▪  Presumed doe commercial agreement that parties intend to

                                be legally bound.

                             ▪  Most  domestic  &  social  agreements  are  not  enforceable


                                based on public policy (child & parent, Husband & wife)




























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