Business Law
Question 1(a)
The legal issue and problem in this question is whether Micky has a contract with Ureach Mobile Co. Section 11 of Contracts Act 1950 provides who are competent to contract, that is those who are of the age of majority according to the law to which she is subject, have sound mind, and not disqualified from contracting by any law to which he is subject (KrishnanL, RajooL, & VergisA.C,2009). On the other hand, the Age of Majority Act 1971 states that the age of majority is 18 years and above, and anyone below that age would be regarded as a minor (LeeMeiPheng & IvanJeronDetta, 2009). Thus, Micky, who is 17 years old, is regarded as a minor and is not competent to enter any contract. The general rule states that the contract entered into by a minor is not binding on him, that is void ab initio (KrishnanL, RajooL, & VergisA.C, 2009). In the Mohori Bibee v Dhurmodas Ghose (1903) case (KrishnanL, RajooL, & VergisA.C, 2009), the plaintiff loan a sum of money to the respondent, a minor, that secure on a house which was leased to the appellant (SlideShare Inc, 2012). Following that, the minor filed a suit to set aside the mortgage (KrishnanL, RajooL, & VergisA.C, 2009). The council held that the contract is formulated with a minor is void (Reporter, 2010). Besides that, the Tan Hee Juan v Teh Boon Keat (1934) case (KrishnanL, RajooL, & VergisA.C, 2009), the plaintiff Tan Hee Juan had transferred ownership of a piece of land to the defendant Teh Boon Keat. The court held that the contract was void and ownership of the land had to be returned to the plaintiff. Plaintiff Tan Hee Juan who is a minor said that contract that involved a minor is said to be void. So, there is no contract at all (SlideShare Inc, 2012). Thus, based on the rule and these cases, the contract entered into by Micky with Ureach Mobile Co for a 12-month smart phone plan is not binding on him. However, there is an exception to that because the contract he entered
The legal issue and problem in this question is whether Micky has a contract with Ureach Mobile Co. Section 11 of Contracts Act 1950 provides who are competent to contract, that is those who are of the age of majority according to the law to which she is subject, have sound mind, and not disqualified from contracting by any law to which he is subject (KrishnanL, RajooL, & VergisA.C,2009). On the other hand, the Age of Majority Act 1971 states that the age of majority is 18 years and above, and anyone below that age would be regarded as a minor (LeeMeiPheng & IvanJeronDetta, 2009). Thus, Micky, who is 17 years old, is regarded as a minor and is not competent to enter any contract. The general rule states that the contract entered into by a minor is not binding on him, that is void ab initio (KrishnanL, RajooL, & VergisA.C, 2009). In the Mohori Bibee v Dhurmodas Ghose (1903) case (KrishnanL, RajooL, & VergisA.C, 2009), the plaintiff loan a sum of money to the respondent, a minor, that secure on a house which was leased to the appellant (SlideShare Inc, 2012). Following that, the minor filed a suit to set aside the mortgage (KrishnanL, RajooL, & VergisA.C, 2009). The council held that the contract is formulated with a minor is void (Reporter, 2010). Besides that, the Tan Hee Juan v Teh Boon Keat (1934) case (KrishnanL, RajooL, & VergisA.C, 2009), the plaintiff Tan Hee Juan had transferred ownership of a piece of land to the defendant Teh Boon Keat. The court held that the contract was void and ownership of the land had to be returned to the plaintiff. Plaintiff Tan Hee Juan who is a minor said that contract that involved a minor is said to be void. So, there is no contract at all (SlideShare Inc, 2012). Thus, based on the rule and these cases, the contract entered into by Micky with Ureach Mobile Co for a 12-month smart phone plan is not binding on him. However, there is an exception to that because the contract he entered
Cited: LeeMeiPheng, & IvanJeronDetta. (2009). Business Law. US: Oxford University Press. SlideShare Inc. (2012). Law Of Contract. Retrieved 2012, from SlideShare: http://www.slideshare.net/Elainebang/law-of-contract Reporter, L. (2010, October 5). Contract Business law: Validity of Contracts by Minors. Retrieved October 26, 2012 , from LawIsGreek: http://www.lawisgreek.com/contract-business-law-contracts-by-minors Clarke, J. (2010). Nash v Inman. Retrieved from Australian Law Contract: http://www.australiancontractlaw.com/cases/nash.html Law Teacher. (2012). Consideration in contract formation. Retrieved from Law Teacher: http://www.lawteacher.net/consideration-law/essays/consideration-in-contract-formation.php KrishnanL, RajooL, & VergisA.C. (2009). Principle of Business and Corporate Law Malaysia. Singapore: CCH Asia Pte Limited.