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Com Law

In: Business and Management

Submitted By hulolf
Words 3260
Pages 14
Zamani owns a business named Jati Inara Furniture in the Johor Bahru. He appointed his sister, Maria to take over on behalf on his business operation as well as his family issue due to chronic decease that causes him unable to move. Unfortunately Maria insisted Zamani to transfer his business ownership under her name or else she will not handle on behalf. Zamani agreed and signed transferred ownership documents to Maria’s name. A year later, after Zamani is fully recovered, he wanted to cancel the contract to be back under his name.

Discuss the issue by referring to the Act of Contract 1950 and other cases that has been verdict.

Issue: a) Whether the contract/agreement made is valid or not? b) Whether Zamani can cancel the contract and regain his right or not?

In this case we will see that the contract is under voidable contract due to lack of free consent which TWO main factors arises are from Section 15 depicted in coercion and also under Section 16 depicted in undue influence. Coercion is an act to commit due to certain threats and undue influence is the act of using their position to obtain unfair advantage from the other party.

As you can see in the situation that Zamani was caught in situation whereby he is suffering from chronic sickness and unable to perform daily task and that is where he requested Maria, his sister to be in charge of handling his furniture business and also his family welfare but Maria is threatening Zamani that she will not handle nor take care of his family unless he transfer the business ownership under her name. This act under the signed contract can be treat as voidable contract due to lack of free consent which is caused to be signed unwillingly.

The law of contract recognizes several situations in which an individual person who has entered into a contract without full knowledge of the nature of…...

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