FREE CONSENT definition: voidable contract -authority: in section 13 of contract acts 1950 "Two ...

1. COERCION -definition & element:is the practice of forcing another party to act in an involuntary manner by use of threats or force. - Section 15 of contract acts 1950"coercion is the commiting, or threatening to commit any act forbidden by the penal code, or the unlawful detaining or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement." - case: kesalmal s/o letchuman das v. valiappa chettiar held= a transfer executed under the order of sultan, issued in the ominous presence of 2 japanese officers during the japanese occupation of malaya, was invalid. the court held that consent was not freely given and the agreement was voidable at the option of the party whose consent was so caused.

2. UNDER INFLUENCE definition & element: when an individual is able to persuade another's decisions due to the relationship between the two parties. -Section 16: a contract is said to be induced by undue influence if one party to the contract uses his position to dominate the will of the other party to obtain an unfair advantage over the other. - case: inche noriah v. shaik allie b. omar held= the gift failed for undue influence. usually a presumption of undue influence may be rebutted by showing that the transaction was entered into "after the nature and effect of the transaction had been fully explained to the donor by some independent qualified person"

3. FRAUD -definition & element: “fraud” includes any of the following acts committed by a party to a contract, with intent to deceive another party or his agent, or to induce him to enter into the contract. - section 17 of the Contracts Act 1950 “fraud includes any of the following acts committed by a party to a contract, with intent to deceive another party or his agent, or to induce him to enter into the contract; 1. section 17(a) of contract acts 1950 2. section 17(b) of contract acts 1950 3. section 17(c) of contract acts 1950 4. section 17(d) of contract acts 1950 5. section 17(e) of contract acts 1950 -case: kheng chwee lian v. wong tak thong held= the federal court held that the respondent had been induced by the fraudulent misrepresentation and the contract was therefore voidable at the option of the respondent.

4. MISREPRESENTATION -definition and element: is an untrue or false statement of law or fact made by one party, which induces the other party to enter into an agreement or contract. -Section 18 0f contract acts 1950 "Misrepresentation" includes- a) the positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; b) any breach of duty which, without an intent to deceive, gives an advantage to the person committing it, or anyone claiming under him, by misleading another to his prejudice, or to the prejudice of anyone claiming under him; and c)causing, however innocently, a party to an agreement to make a mistakes as to the substance of the thing which is the subject of agreement. -case: tan chye chew v. eastern mining & metal co. held= federal court found that here had been misrepresentation by the second appellant. therefore, the contract was not voidable on account of the second appellant's misrepresentation.

5. MISTAKE definition & element: is an erroneous belief, at contracting, that certain facts are true. It can be argued as a defense, and if raised successfully can lead to the agreement in question being found void ab initio or voidable, or alternatively an equitable remedy may be provided by the courts. -section 21 Contracts acts 1950, where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void. -section 22 contract acts 1950, A contract is not voidable because it was caused by a mistake as to any law in force in Malaysia; but a mistake as to a law not in force in Malaysia has the same effect as a mistake of fact. -section 23 contract acts 1950, contract caused by mistake of one party as matter of fact(not voidable) case: galloway v. galloway fact= an agreement to divorce between ptf. and def. is void since both parties mistaken about their marital status. held= their marriage is void