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TOPIC 3 Consideration
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TOPIC 3 Consideration 3.1 Introduction Consideration is a necessary component in all simple contracts. Contrast formal deeds. Consideration involves the concept of a bargain being struck, or a deal being done by the contracting parties. Something of value must be exchanged in order for a valid contract to be formed. 3.1.1 Definition s 2(d) Contracts Act Guthrie Waugh Bhd v Malaippan Muthucumaru [1972] 1 MLJ 35 HC at 38-39; [1972] 2 MLJ 62 FC 3.1.2 Act or forbearance as consideration An act or forbearance may constitute valid consideration under the Contracts Act. Guthrie Waugh Bhd v Malaippan Muthucumaru [1972] 1 MLJ 35 HC; [1972] 2 MLJ 62 FC Sharma J (at 39-40) HC decision Gill FJ (at 67) FC decision See also the different ground propounded by Ong CJ (Malaya) in allowing the appeal. 3.1.3 Promisee must take upon himself a burden or detriment Macon Works & Trading Sdn Bhd v Phang Hon Chin & Anor [1976] 2 MLJ 177 HC HC considered the common law meaning of consideration, ......
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