Chapter 2 : Law of Contract
Forbidden by law Manang Lim Native Sdn Bhd v Manang Selaman [1986] Facts: A non-native sought to deal in native land; and this was against the Sarawak Land Code. Held: An agreement made in contravention of a statue (Sarawak Land Code) and therefore a void agreement exist within the meaning of Sec 2(g) of the CA 1950. The contact is valid if the dealing was authorized by the Yang di-Pertua Negeri, Sarawak.
If permitted, it would defeat any law Re Sebastian, ex p Metroplex Leasing & Credit Corporation Sdn. Bhd. Held: The High Court held that the contract and transactions made in contravention of the Radioactive Substances Act 1968 were illegal and, therefore, void under Section 24 of the Contracts Act 1950.
2.5
TERMS OF CONTRACT Parties are normally bound to perform what they have contracted to do. However, it is important to establish the promises to be included in the contract. Term is a statement which creates contractual obligations between the parties, breach of which will result in the injured party being able to sue. In addition to it express terms, a contract may contain a number of terms that the parties or the courts may ‘read’ into the contract. These are called ‘implied terms’ Implied Terms
Express Terms
2.5.1 Express Terms
It is essential requirement for a contract to be legally binding that the parties have reached the agreement. These term of the agreement which they have set out, in writing, verbally or a mixture of the two are known as express terms.
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