How To Answer Business LAW
How To Answer Business LAW
How To Answer Business LAW
Issue Principles of law relevant to the question Application i.e. applying the principles of law discussed earlier into the question Conclusion
Suggested answer: Introduction : Definition of a contract An agreement does not always mean contract. For agreement to e a contract! there must e an intention etween the parties that they want to enter into a legal relationship etween them. In other words there must e an intention to create legal relationship etween the parties. "he #alaysian Contracts Act $%&' does not contain any provisions with regard intention to create legal relation. (ence! )nglish common law is applied to determine whether these contracts are legally inding etween the parties. "here are two types of relationship e*ist+ domestic or social agreement. usiness,commercial agreements and
In usiness agreement the law presumes that the parties have the intention to create legal relationship unless proven otherwise. "his was illustrated in the case of Lim Keng Siong v Yeo Ah Tee . In this case the respondent claimed-.please refer to the manual for facts of the case/ In social agreement however! the law always presumes that the parties do not intend a legally inding contract or legal consequences arising out of the contract unless proven otherwise. For e*ample! in the case of Balfour v Balfour, the defendant hus and was a civil servant --.please refer to the manual for facts of the case/ "his presumption that the parties do not intend legal consequence was re utted in the case of Merritt v Merritt. In #erritt0s case! the hus and left the matrimonial home-- .please refer to the manual for facts of the case/ Applying the principles a ove to the facts in question! it is su mitted that there is no inding contract etween 1ahul A dullah and his first wife 2oor "ina as this agreement comes under the category of domestic and social agreement. In this type of agreement the law presumes that the parties do not intend legal relationship unless 2oor "ina can prove otherwise! for instance the e*istence of written agreement li3e in the case of #erritt v #erritt. "herefore if there is no clear evidence to show that oth parties intend to create legal relation! it is concluded that 2oor "ina cannot ta3e legal action against her hus and for reach of contract due to the a sence of the element of an intention to create legal relation.