Essay on Consideration (Malaysia Law)

1051 Words Jul 27th, 2013 5 Pages
In English law if other than the promisee provide consideration, then the promise could not be enforce by the law. This problem usually may arise when third party involve. For example in the case of Price v Easton (1833), In this case X are doing work for Easton and Easton make a contract with X. In return for X services Easton would pay a price of $19 to Price. The work was done by X but Easton didn’t make any payment to Price and Price sue Easton. Court held that Price claim failed as he didn’t make any consideration.

However under the Malaysia law third party of promise are allowed to provide consideration. Section 2(d) of contract Act 1950 define consideration as “when at the desire of the promisor, the promisee or any other person
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This means that if there is no consideration they would be no contract between the party.

Consideration can be classified as executory, executed and past. In the case of Wong Hon Leong David v Noorazman Bin Adnan the defendant promise to pay RM268,888 to the plaintiff for his service if he obtaining approval of application. The couth held that under the section 2(e) contract act 1950 stated that “every promise and every set of promises, forming the consideration for each other is an agreement”. Therefore in this case as there is a promise made by the defendant although it is executory consideration, it is a good consideration. For that reason there is a contract binding both party.

Executed consideration defines as when a party act or has been performance something given or accepted must be return for the promise. Executed consideration can be seen in the case of Carlil v Carbolic Smoke Ball Co Limited, In this case the advertisement which has been made by Carbolic Smoke Ball remain offer until Mrs carlil bought the Smokeball it remain executory. By using the Smokeball was the consideration and it will remain executory until the performance is completed and become executed. Used it and caught influenza the contract would binding the both party.

It would become an executed consideration when clear promise are been made by both party, usually this

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