Coercion

 Hi guys, for this week I learn about the topic of coercion. If you are not familiar with this word, you can just simply search for it in google. However, you may not be able to understand it without any further explanation from anyone who is more knowledgeable about it such as legal practitioners, law lecturers and the others.

 

According to section 15 of the Contract Act 1950 (CA), coercion may be defined as as an act of committing threat which forbid by Penal Code, unlawful detain or threat of property and causing force of a person to enter an agreement. In my view this provision do help people to get justice when having a contract because sometimes people have to follow other party without his intention to enter, in order to protect the objective of a contract.

There are some elements that need to be fulfilled in order to apply coercion which are the coercion must be the committing of an act forbidden by the Penal Code, the coercion must be the unlawful detaining or threatening to detain any property and the act of coercion must be carried out with the intention of causing any person to enter into an agreement. One of the case is illustrated about coercion and the case is Muthia v Muthu Karoppa [1927]. This case is about an agent refused to hand over he account books of the business, at the end of his term in office, to the new agent unless the principal freed him from the liability in respect of his agency . The principal executed a release deed under which the agent was freed from liability. The court held that the release deed was voidable at the option of the principal. As he was made to execute the release deed under coercion. In this case the consent was obtained by unlawfully detaining the property which is the account book, of the principal.

To make it easier to be understand, the example of coercion is A force B to agree buying A's car with prescribed prices or else B will suffer something bad in future. This make B to enter an agreement without consensus. In this condition, B can get back his right to what he is not willing to enter.

Moreover, section 65 of Contract Act provides for the deceive party to get restored what he lose as equal as what the other party get benefits from the agreement. This provision is sufficient into condition of voidable contract while section 66 of Contract Act has the same content but it suffice for a void contract. In short, we can understand that the purpose of this provision is to protect the objective of a contract which not entered voluntarily by such party.

Okay, so far that is all for this week. Please enjoy and thank you.😁

What is Contract Law?

Basically, before we go further to the main topics, i would like to explain about the introduction of contract law first. 

What does it means by contract?

Contract can be defined as an agreement between private parties creating mutual obligations enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are mutual assent, expressed by a valid offer and acceptance, adequate consideration, capacity and legality. 

A legal scholars once said, “Contract is an agreement between two parties which, on the first impression, appears to fulfill all the mandatory of a valid contract" (Dobson, 1997).A contract can be either oral or written. However, oral contracts are more challenging to enforce and should be avoided, if possible.

What is the importance of contract law? 

In order to operate a business, Contract between two or more parties is very crucial. Although contract can take place in here and there; in a business concern, it is important for both parties to enter into a contract for further operation and to protect each other's rights and interests. Therefore, it is crucial to understand the rules governing them to ensure you have a valid contract.

What is the Act used in Contract Law?

Basically, our contract law is governed and enforced by the Contract Act 1950 in Malaysia. This Act was modelled from the Indian Contract Act 1872. Through time, however, new forces have challenged the traditional views of contract law, supported by legislative reforms and judicial developments. The shift from classical to modern contract law has been taken cognizance of and is generally accepted in the common law world.

This is the example of image for Contract Act 1950

Blogger update :')

 Assalamualaikum and hi guys.. I'm so sorry for being late in updating my blogs😭 .. Well, as you know, due to the pandemic covid-19, i am having my online classes and it is quite hard and affecting my leisure time to update my blog. I'm pretty sure that most of guys are waiting for my update right?😆

But its okay, now i am back and lets me share some legal knowledge on contract law with you guys for a few interesting topics. The topics are coercion, undue influence, fraud, misrepresentation and mistake. 

Lets check it out on below posts👇 

Introduce myself

 Hi guys, my name is Asyraf. This is my first attempt to create a blog regarding law education. To know more, do follow my blog and stay tuned ok😉