Section 4(2) Contract Act 1950
Exception in favour of certain prizes for horse racing (2) This section shall not be considered an instruction, contribution or agreement to draw or contribute, make or be entered into any plate, prize or sum of money of five hundred ringgits or more awarded to the winner or winners of a horse race. Explanation – Nothing in this section prevents a guarantor from recovering from its principal payments made by the guarantor on behalf of the principal or authorizes the principal to claim part of the guarantee on the basis of payments made by the principal. 189. A person with whom a contract has been concluded as an agent is not entitled to demand such performance if, in reality, he acted not as an agent but on his own account. Liability of the Customer, which leads to assume that the unauthorized actions of the Agent have been authorized (o) A contracts for the delivery of 50 Gantang Salpeter to B on January 1st at a certain price. B subsequently, before 1 January, contracts the sale of saltpeter to C at a price higher than the market price of 1 January. A breaks his promise. When estimating the compensation to be paid from A to B, account should be taken of the market price on 1 January and not of the profit which B would have derived from the sale to C. p) A contract for the sale and delivery of 500 bales of cotton to B on a fixed day. A does not know how B runs his business.
A breaks his promise, and B, who has no cotton, is forced to close his mill. A is not liable to B for damage caused to B by the closure of the plant. (q) A to sell and deliver to B on 1 January contracts for the sale and supply of certain substances which B intends to produce in caps of a particular species which are not in demand except at that time of year. The fabric will only be delivered after the set time and it is too late to be used to make caps this year. B is entitled to receive from A as compensation the difference between the contract price of the fabric and its market price at the time of delivery, but not the profits it expected to derive from the production of caps. nor the cost of preparing production. (r) A, the shipowner, enters into a contract with B to take him from Kelang to Sydney on A`s ship departing on 1 January, and B will pay half of his transit costs as a deposit. The ship departs on the 1st. After being detained in Kelang for some time and thus charged with certain expenses, B travels to Sydney on another ship and consequently loses a sum of money if he arrives too late in Sydney. A is required to reimburse B for its advance payment plus interest and costs incurred as a result of its detention at Kelang and the excess, if any, of the transit costs paid for the second vessel over the agreed vessel for the first vessel, but not the amount of money lost by B as a result of its late arrival in Sydney. a) A undertakes with B to pay RM1,000 if it does not pay RM 500 B on a given day. A does not pay B RM500 on that day, B is entitled to recover from A compensation not exceeding RM1,000 that the court deems appropriate.
The memorandum must contain all the conditions or at least all the essential clauses of the contract, except those provided for by law. These are the parties; The object and consideration must be indicated in the document together with all other essential provisions such as payment terms. Second, when the document is to be created to fill the statue. As a general rule, a memorandum must be concluded after the conclusion of the contract. Any document made earlier cannot determine which contract was crazy, but can only indicate the likelihood that the contract will be concluded. (b) A enters into a contract with B for the supply of 250 Gantang rice before 1 May. A book 130 Gantang only before this day and not later. B retains the 130 Gantangs after May 1. He is obliged to pay A for them. c) A, a singer, asks B, the director of a theatre, to sing in her theatre two nights a week for the next two months, and B undertakes to pay her RM 100 for each evening performance. On the sixth night, A voluntarily withdrew from the theater, after which B canceled the contract. .