situations, there are three different contracts made between Allan and the bus conductor, Allan and Sally and Allan and Abu. Allan was trying to trick or lie to the bus conductor, Sally and Abu. The issue for the case Allan and the bus conductor and Allan and Sally is whether there is a valid contract between the two parties. For the case Allan and Abu, the issue is whether Abu can avoid the contract or not. The bus conductor, Sally and Abu can get compensation or claim for damages from Allan according to what is stated in The Contracts Act 1950. The Contracts Act of 1950 is an act that involves contracts made between individuals and also the basic fundamentals of how a contract works or functions, and what actions can be taken if someone against the act and how the other people in contract can claim for damages or sue the people for damages done.
In the case between Allan and the bus conductor, Allan left his folder in the bus and finally the bus conductor voluntary return the folder to Allan. Allan promised that he will reward the conductor with RM500 but in the end he refuses to hand over the reward due to there was no agreement as there was no consideration to support his promise. The bus conductor can actually sue Allan can get the RM500 according to Section 2 (a) Contracts Act 1950 states that “when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to the act or abstinence, he is said to make a proposal.” The bus conductor is willingness to contact Allan and return him the folder. Also, Under Section 26 (b) Contracts Act 1950 provides that agreement made without consideration is void unless it is a promise to compensate a person who has already voluntarily done something for the promisor. 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