Issue

-Whether there is a valid contract between Bakar and Ahmad or not?

Theory of Law

In general rule, a contract without consideration is void. However, there is an exception whereby the
agreement become a valid contract even there is no consideration by the part to other party which
in Section 26 (b) whereas it provides it is promise to compensate , wholly in part , a person who are
already voluntarily done something for promisor.

The relevant case is JM Motherspoon & Co Ltd v Henry Agency House (1962), where the plaintiff had
acted on suggestion of the defendant. The plaintiff’s action could not be said to have done
voluntarily. Therefore, the promise made by the defendant to compensate the plaintiff was not an
enforceable contract within the exception 26 (b).

Applicable

By applying this section 26 (b), It could be said that Bakar and Ahmad’s case was affected by an
agreement to compensate with a past voluntarily act done by Bakar because when Ahmad was
work-out station and his caught fire , then Bakar voluntarily helped Ahmad’s family . After Ahmad
back from the out station, He promised Bakar to RM 1000 when he found out from his wife what
Bakar did to his family and it becomes a binding contract between them. So, Ahmad may liable if he
breaches his promise.

Conclusion

Yes, there is Valid contract between Bakar and Ahmad.