TUTO CONTRACT 2 COERCION

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Coercion

Question 50

Page 749-750

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Economic Duress?

Neighborhood Problem

What is Coercion?

Remedies?

Mainpoint

Sharmeela Marriage?

Sharmeela Money & Property?

Conclusion

What is Coercion?

Based on Section 15 of Contracts Act 1950:Coercion is the committing or threatening to commit any forbidden any act forbidden by the Penal Code, or the unlawful detaining or threatening to detain, any property, to prejudice of any person whatever, with the intention of causing any person to enter into an agreement.

Why coercion is wrong by the eye of law? Based on Section 10 of Contracts Act 1950: All agreements are contracts if they are made by the free consent of parties... Based on Section 14(a) of Contracts Act 1950: Consent is said to be free when it is not caused by coercion.

Info

ECONOMIC DURESS?

Based on case of Teck Guan Trading Sdn Bhd v Hydrotek Engineering (S) Sdn Bhd [1996] 4 MLJ 331 economic duress does not cover in Section 15 of Contracts Act 1950.

Another Section

Cases

Factors

Attempt

EFFECT & REMEDIES?

EFFECT

RESCISSION

RESTITUTION

The contract where the coerced party entered is voidable at his option.

The coerced party has a choice either to continue with the contract or rescind the contract.

Where the contract is rescinded, the court will restore the parties to the position they were in before the contract.

Neighborhood Problem

Sharmeela v Prem

Gopal,a first year law student at IIUM went to Cameron Highlands for a holiday and there met Sharmeela, the daughter of the Darjeeling Tea Estate manager. They fell in love and planned to marry after Gopal had completed his studies. Two years later, Gopal was heartbroken when he discovered that Sharmeela had married Prem, the chief gangster at Cameron Highlands. Gopal vowed never to marry anyone. One day, after six years of practice as lawyer, Gopal met Sharmeela at the doorsteps of the Supreme Court. They had tea together and Sharmeela poured out to him all the troubles of her life.

Material facts of the case

Next

LEGAL ISSUES

Whether the marriage contract between Sharmeela and Prem was made under coercion.

Whether Sharmeela can claim for the money and property taken and spent by Prem for his gambling activities.

Sharmeela's Marriage?

Whether the marriage contract between Sharmeela and Prem was made under coercion.

CASE law

Penal code

CA 1950

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Sharmeela's Marriage?

Sharmeela was forced to enter into the marriage contract by Prem.

The act of threatening to spread a defamatory statement to destroy Sharmeela's father reputation.

1.

TITLE HERiyE

Section 499 of the Penal Code

TITLERE

2.

Section 425 of the Penal Code

The act of threatening to burn the estate building

Penal code

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Money & Property?

Whether Sharmeela can claim for the money and property taken and spent by Prem for his gambling activities.

CA 1950

Sharmeela did not receive any benefit or advantage from the marriage contract. In contrast, only Prem gain the benefit which were the money and property.

Section 66 is more relevant

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CONCLUSION

1. The marriage between Sharmeela and Prem was made under coercion. Thus, it is voidable according to section 19(1) of the Contracts Act 1950. We would advise Sharmeela to set aside the marriage contract. 2. By virtue of Section 66 of the Contracts Act 1950, Prem is entitled to restore the money and property used for his gambling activities which were taken from Sharmeela.

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Thank You!

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