Page 58 - PRINCIPLE OF LAW- FINAL (eISBN) pdf

Politeknik Kota Bharu

2.1.3 CAPACITY

• Clause 11-competent person.

• Capacity to contract means a person is legally competent to

enter into a contract / legal agreement.

• Competent:

a. Age of majority (not minor or underage of 18) except for

scholarship, insurance, or marriage.

b. Someone must be of sound mind. (Not mentally ill or

intoxicated).

c. Not disqualified from contracting by any law .

2.1.4 FREE CONSENT

• Clause 13

• Two or more persons are said to consent when they agree

upon the same thing in the same sense. Consent is said to be

free when it is not caused by Coercion, Undue influence, Fraud,

Misrepresentation and Mistake.

2.1.5 LAWFUL OBJECT

• The object of an agreement must be valid (nothing to do with

consideration). It means the purpose or design of the contract.

• The Object is said to be unlawful if-

a. Forbidden by law.

b. Such nature that if permitted it would defeat the
provision of any law.

c. Fraudulent

d. Involves an injury to the person or property of any other.

e. Court regards it as immoral or opposed to public policy.

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