Undue Influence (Malaysia)
VOIDABLE CONTRACTS * COERCION * UNDUE INFLUENCE * FRAUD * MISREPRESENTATION * MISTAKE
PREPARED BY:
TEH GUAN HONG GM04795
NUR SYAHIRAH BINTI HUSAINI GM04674
SAMEENA BINTI SIRAJ GM04558
ASHTON GM04801
NALINI BALAKRISHNAN GM04634
COERCION
Coercion, as an element of duress, is grounds for seeking the cancellation of a contract or deed. When one party to an instrument is forced against his or her will to agree to its terms the document can be declared void by a court.
In order words, a contract only be binding if both of the parties voluntarily consent to it. The consent should be invalid of one party is forced to consent by threats or under persuasion by the other. As defined in section 15 of the Contracts Act, one form of such threats is ‘coercion’ and for the purposes of section 14 (as discussed in para 2.1) which, among others, require ‘free consent’ of contracting parties. The section goes on to provide that consent is free when it is not caused by ‘coercion’ as defined by section 15, or others such as ‘undue influence, fraud, misrepresentation and mistake’.
Section related to coercion The relevant part of section 15 reads as follows: -
‘Coercion’ is the committing, 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.
Illustration The illustration of coercion as per following:
A, on board an English ship on the high seas, causes B to enter into an agreement by an act amounting to criminal intimidation under the Penal Code.
A afterwards sues B for breach of contract at Taiping.
A has employed coercion, although his act is not an offence by the law of England, and although section 506 of the Penal Code was not in force at the time when or place where the act was done.
Sample Cases for coercion
Case 1
Lord Moulton in Kanhaya Lal
PREPARED BY:
TEH GUAN HONG GM04795
NUR SYAHIRAH BINTI HUSAINI GM04674
SAMEENA BINTI SIRAJ GM04558
ASHTON GM04801
NALINI BALAKRISHNAN GM04634
COERCION
Coercion, as an element of duress, is grounds for seeking the cancellation of a contract or deed. When one party to an instrument is forced against his or her will to agree to its terms the document can be declared void by a court.
In order words, a contract only be binding if both of the parties voluntarily consent to it. The consent should be invalid of one party is forced to consent by threats or under persuasion by the other. As defined in section 15 of the Contracts Act, one form of such threats is ‘coercion’ and for the purposes of section 14 (as discussed in para 2.1) which, among others, require ‘free consent’ of contracting parties. The section goes on to provide that consent is free when it is not caused by ‘coercion’ as defined by section 15, or others such as ‘undue influence, fraud, misrepresentation and mistake’.
Section related to coercion The relevant part of section 15 reads as follows: -
‘Coercion’ is the committing, 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.
Illustration The illustration of coercion as per following:
A, on board an English ship on the high seas, causes B to enter into an agreement by an act amounting to criminal intimidation under the Penal Code.
A afterwards sues B for breach of contract at Taiping.
A has employed coercion, although his act is not an offence by the law of England, and although section 506 of the Penal Code was not in force at the time when or place where the act was done.
Sample Cases for coercion
Case 1
Lord Moulton in Kanhaya Lal