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Free Consent
 Free consent
 Sec 10 = agreements are contract if made out
of free consent
 Sec 13 = agree same thing in same sense
 Sec 14 = no Free Consent, if caused by :
 Misrepresentation
 Coercion
 Undue influence
 Fraud
 Mistake
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 Misrepresentation sec 18 CA
 Def : false statement of fact made by
one party to another, which induces the
other party to enter the contract.

 Effect = voidable = the innocent party

have the right to rescind the contract
and/or claim damages

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 Exception (sec19): if the representee
discover the truth but still proceed with the
agreement, the ctc is not voidable.

 Remedies:
 - s 19(2) right to affirm & put in position
if the rep. is true.
- s 65 if rescind the ctc, the representee
have to restore any benefits that he may
have received from the representor
- s 66 representor must restore benefits
received and pay compensation

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 Coercion/duress : Sec 15
 Where one of the parties is forced to make
the contract by violence or the threat of
violence

 The threat made him enter the contract

 To the person/his family/his property/
goods

 Effect = sec 19 = voidable = option to set

aside/ continue
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 Undue Influence : Sec 16
 S16 (a)
 relationship of trust and confidence between the
complainant and the wrongdoer – dominate the other
 wrongdoer abused that relationship to get the
complainant to enter the contract( obtaining an unfair
advantage)
 S16 (b)
 Law assumes certain relationships have one party
dominate the will of another : parent & child: solicitor
& client; doctor & patient; trustee & beneficiary;
religious adviser & disciple
 S16 (c)
 Burden of proof of person that claims no UI

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 Allcard v Skinner
 Miss Allcard became associated with the Sister of
Poor. Within a few days becoming a member, she
transfer all her property to Miss Skinner (the lady
superior of Sister of Poor) since there is a rule
which require a member to surrender all their
property. When miss Allcard left the sisterhood
later, she revoked the transfer to recover her
money back but waited a further six years b4
commencing an action.
 Held ; if she had sued at an earlier date she would
have succeeded on the ground of UI. But as it was
due to her acquiescence rendered her claim barred
by laches.
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 Fraud : Sec 17
 an act done by a party to a ctc with the
intention to deceive the other to enter into
contract
 Effect = sec 19 = voidable
 Exception: fraud per se is not voidable
 Mithoolal v Life insurance Corp. of India
 A false representation whether fraudulent or
innocent, is irrelevant if it has not induced the
party to whom it is made to act upon it by entering
into the contract.
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 Mistake

S. 23 of CA 1950 - A contract is not

voidable merely because it was caused
by one of the parties to it being
under a mistake as to a matter of
fact

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Mistake under Malaysian Law

Sec 21 Sec 23
Mistake to
Common M = Mistake as to fact
document
Mutual M (unilateral M)

GR:
Signatory Subramaniam
Bound by the V. Retnam: Exception:
terms Signed, didn’t NON EST FACTUM
of the contract Understand
he signs English=
valid

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 NON EST FACTUM

MISTAKEN BELIEF
AS TO THE
CAUSED BY ILLITERACY,
CHARACTER
BLINDNESS, SENILITY,
& CLASS OF DOCS.
AWANG B. OMAR; FRAUDULENT CONDUCT OF
Held, there was a THE OTHER PARTY
Mistake as to the
Doc. Signed and there4
Df was not liable.

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