CERTAINTY General rule: uncertainty destroys the agreement/contract. Type of uncertainty: Language used too vague – so no concluded contract Fail for incompleteness- failure to reach agreement on a vital or fundamental term of an agreement.

Karuppan Chetty v Suah Thian (1916) The contract was allowed one of the parties to rent a premise for $35 a month “as long as he likes”. The contract was held void because there was no certainty as to how long be “as long as he likes”

not disqualified from contracting by any law to which he is subject. LEGAL CAPACITY Gen rule: contract must be entered into by person who has full capacity/competent to do so. Not competent : the contract void. not disqualified from contracting by any law to which he is subject. age of majority sound mind

Minor……………………. Def: do not reach the age of majority (below 18) Gen rule: All contract entered by minor are void, bcoz to protect the minor. Tan Hee Juan v The Boon Keat(1934) The Pf (infant) executed transfers of land in favor of the Df. Then the Pf applied to the court for an order to set aside the transfer. The court held that the transfer is void & order the restoration of property to minor.

Void contracts entered by a minor Land A minor cannot be registered as transferee, chargee or registered holder of a lease. Agency A minor cannot be an agent

Exceptions…… The capacity of any person to act in matters relating to marriage, divorce, dower and adoption. A promise of marriage entered into by minors or their parents on their behalf is valid. Rajeswary v Balakrishnan(1958) Both parties were Ceylonese Hindus. After the marriage ceremony, 1st df send letter to 2nd pf (father of 1st pf) repudiated the promise of marriage to the 1st pf bcoz she (1st pf being a minor) so incapacity to enter into the contract of marriage. Court held that the age of majority for entering into a marriage contract is different from other contracts entered into by a minor. Therefore marriage contracts were not affected by the general rule of minor (capacity).

2. Religion and religious rites and usage of any class of person within Malaysia. 3.Any other written law fixing the age of majority. -eg: AOM for workers who want to join a trade union is 16 yrs old.

4. Necessities -minor is liable in contract for necessaries - Government of Malaysia v Gurcharan Singh (1971) -Pf claim $11500 i.e the sum actually spent by the government in educating the df. At that time of the contract, df was a minor. The court held that education was necessary thus, the df was liable for the repayment of reasonable sum spent on him. -necessaries depends on minor situation of life. Eg: clothes could well be ‘necessaries’ but if the minor is already adequately stocked, they may be treated as mere luxury.

False representation that he was of full age: Minor’s liability include necessaries supplied to anyone whom he is legally bound to support eg: wife & children. False representation that he was of full age: Natesan v Thanaletchumi(1952) When an infant has induced a person to contract with her by means of a false representation that she was of full age, she is not estopped from pleading her infancy in avoidance of the contract.

5. Scholarship -a scholarship entered by a minor is a valid contract. loan sponsorship appointment to the course of study any other facility for the purpose of education and learning.

6. Insurance - a minor above 10 may enter a contract of insurance but if below 16,must have written consent from his parent/guardian.

7. Apprenticeship - the Children and Young Person (Employment) Act 1966: “minor (below 14) and young person (btw 14 and 16) may enter into a contract of apprenticeship” - they may sue or defend under such contracts of service, but no damages or indemnity can be recovered from him for breach.

8. Guarantee guarantee S69CA: if the contract between principal debtor and creditor is invalid because of minority, the guarantee is void so the guarantor is not liable. “validity of main contract is a pre-condition for the guarantee”

PERFORMANCE &RECOVERY OF BENEFIT FROM MINOR sec 66 CA: when an agreement is discovered to be void, any person who has receive any advantage under the agreement or contract is bound to restore it, or to make compensation for it, to the person from whom he receive it. if contract void restore compensation

Soundmind……. Sec 12 CA: sound mind= at the time when a person makes a contract, he is capable of understanding it and of forming a rational judgment as to the contract effect on his interest. Person of mentally disorder, and person incapacitated through sickness, alcohol or drugs are not competent to contract.

Effect: voidable at the option of the person of unsound mind but must prove or intoxication condition Must prove other parties knows of his condition