Mary promised to give her brothers RM500 monthly on the condition that their mother transfer some land to her. Their mother agreed and transferred the land to Mary. Mary however failed to fulfill her promise and her brothers sued her on the promise. Advise Mary.

1. LAW087 – INTRODUCTION TO
LAW III
Tutorial Question 8 (20 marks)

2. Question (20 marks)
• Mary promised to give her brothers RM500 monthly
on the condition that their mother transfer some
land to her. Their mother agreed and transferred
the land to Mary. Mary however failed to fulfill her
promise and her brothers sued her on the promise.
Advise Mary
Mary
Brothers
Mother
RM500
LAND

3. Answer
• ISSUE
– Whether Mary’s brothers have the right to sue
her for breach of contract
Mary
RM500
Brothers

4. Answer
• LAW
– DEFINITION OF PROPOSAL
• Section 2(a) of Contract Act 1950 : When one
person signifies to another his willingness to
abstain from doing anything, with a view to
obtaining the assent of that other to the act or
abstinence, he is said to make a proposal.
A proposal made by one party to another party, with the
intention that, other party would accept his proposal

5. Answer
• LAW
– AGREEMENT WITHOUT CONSIDERATION IS
VOID
• Section 26 of Contract Act 1950 : An
agreement made without consideration is
void unless….

6. Answer
• LAW
– DEFINITION OF CONSIDERATION
• Section 2(d) of Contract Act 1950 : When at
the desire of the promisor, the promisee or
any other person has done or abstained from
doing, or does or abstains from doing, or
promises to do or to abstain from doing
something, such act or abstinence or promise
is called a consideration for the promise.
Consideration is an act or abstinence or promise by the
promisee or any other person as required by the
promisor in return for his promise. Literally, it means
something that is given in return for something else

7. Answer
• LAW
– CONSIDERATION CAN MOVE FROM THE
PROMISEE OR OTHER PERSON
• Section 2(d) of Contract Act: When at the
desire of the promisor, the promisee or any
other person…….
• Case : Venkata Chinnaya v.
Verikatara’ma’ya, in this case the sister was
liable on the promise on the ground that there
was a valid consideration for the promise
even though it did not move from the
brothers

8. Answer
• APPLICATION
– Mary, brothers, mother
Mary
Brothers
Mother
RM500
LAND
PROPOSER
PROMISEE

9. Answer
• APPLICATION
– Consideration is an act or abstinence or promise
by the promisee (Mary’s brother) or any other
person (their mother) as required by the
promisor (Mary) in return for her promise (to
give RM500 monthly).
Mary
Brothers
Mother
RM500
LAND
When something is given in return for something
else, it is clearly shows that there is consideration that
makes the agreement valid
RM500 – Consideration for
her mother to give Mary
some land
LAND – Consideration for
Mary to give RM500
monthly to her brothers

10. Answer
• APPLICATION
– In this case only the mother and Mary provide
consideration whereas the brothers did not
provide any consideration.
As accordance to Section 2(d) of Contract Act 1950 and the
case of Venkata Chinnaya v. Verikatarama’ya’, consideration
can move from the promisee or any other person.
Even though the brothers did not provide any
consideration, the agreement is still valid

11. Answer
• CONCLUSION
– Mary hereby advised to pay RM500 monthly to
her brother. This is due to there is no doubt in
the validity of the agreement made by the
persons involved.
Her brothers have a right to sue her for breach of contract if
she fails to give them RM500 monthly.

12. THE END

13. Answer
• LAW
– CONSIDERATION OR OBJECT OF AN
AGREEMENT MUST BE LAWFUL
• Section 24 of Contract Act 1950 : The
consideration or object of an agreement is
lawful unless…..
E.g. of Unlawful Consideration :
1. It is forbidden by a law
2. If it is permitted it would defeat any law
3. Fraudulent
4. Implies injury to the person or property
5. immoral

14. Answer
• APPLICATION
– There is no exception under Section 26 of
Contract Act 1950 that make the agreement
valid.
As accordance to Section 26 of Contract Act, An agreement
made without consideration is void unless (3 exceptions) it is in
writing and registered, a promise to compensate something done
and a promise to pay a debt barred by limitation law