Business Law

3143 Words Sep 6th, 2013 13 Pages
HUTECH & OUM
MBAOUM0512 INTAKE : MAY 2012 – OCTOBER SEMESTER 2012
STUDENT NAME: CHU THI HONG TUYEN ID No.: 2448481

BMLW5103 – BUSINESS LAW ASSIGNMENT
Question 1

Discuss the enforceability of an agreement which lacks consideration. Using legal authorities (relevant statutes and cases) to support your discussion. Answer: A valid contract is an agreement made between two or more parties that creates rights and obligations that are enforced by law. What does the consideration mean? And what does it effect to the agreement? Consideration is something of value exchanged for the promise. It is something given by a promisee in return for something given by the promisor. According section 2(d), Contract Act provides “when at the desire of the
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This is the exception provided in Section 26(b), contract Act 1950. The rule provides that an agreement without consideration is valid if “ it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do”. Ex: Ms.Ann is the neighbor of Mr. Clive and Ms.Ann support Mr.Clive to take care his son during he has having a meeting. Mr.Clive promise to pay Ms.Ann for this work.This is a contract and Ms.Ann can enforce Mr.Clive’s promise. 3. Agreement to pay a statue- barred debt. This is another exception provide in section 26(c), Contract Act 1950. The rule provides that an agreement without consideration is valid if “ it is a promise, made in writing and signed by the person to be charged therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of suits. Means the debtor makes a fresh promise to pay the statute-barred debt and the promise is made in writing and signed by the person to be charged or his authorized agent. Ex:The Imperial group owes GTDV Company a debt is 130,000 USD for scope of work of so many contract. But the debt is barred by limitation. GTDV made summarize of debt and The Imperial representative signed a written promise to pay GTDV 100,000 USD. This promise is fresh and valid. This is a

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