EXAMPLES OF DISCUSSION

Pak Hamid wants to give his farm land to his daughter, Saadiah on her 23rd birthday. Saadiah would not pay anything for the transfer of the land. Pak Hamid is worried about this that since there is no consideration for the transfer of his farm land to Saadiah, as the transfer may be void under section 26 of the Contracts Act 1950. Advise Pak Hamid, and supports your answer with legal authority.

Issue – whether the transfer of land is valid although without consideration?
Rules:
• Section 26 provides that as a general rule, an agreement without consideration is void. • Section 2(d) defines consideration. • Section 26(a) agreement without consideration is void, unless it is expressed in writing, registered under the law (if any) for the time being in force for the registration of such document, it is made on account of natural love and affection between parties standing in a near relation to each other.
Issue and rules + explanation
Application:
An agreement made on account of natural love and affection is binding if the following requirements are present: • It is expressed in writing • It is registered (is applicable) • The parties stand in a near relation to each other – Tan Soh Sim, Chan Law Keong & Ors v Tan Saw Keow & Ors
Applying the above principles, Pak Hamid need not be worried because the transfer of his land will be in writing and be registered; and Pak Hamid as Saadiah father, the transfer for love and affection will be valid even though Saadiah does not pay anything for the land.
Application + explanation

Mr. Tan enters into Excellent Supermarket and selects some of the groceries including vegetables, fruits and dried herbs. He then put these items into the shopping basket. Whether the contract has been formed at this juncture between Mr. Tan and Excellent Supermarket? Give reasons for your answer and