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worried about the validity of the contract mean how to form valid contract??

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › worried about the validity of the contract mean how to form valid contract??

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Vijay.
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  • Author
    Posts
  • February 27, 2021 at 7:27 pm #612026
    laiseeping89@gmail.com
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Dear Sir,

    Robert is a very successful real property developer and wants to sell his house worth
    RM500,000 to one of his employees, Jack. Robert would like to sell his house to Jack for
    only RM1,000 due to his excellence performance in the company. However, Robert is
    worried about the validity of the contract between them and seeks for your advice on this
    matter.

    I am confusing the question is asking us how to form a valid contract or asking us what are factors will affect the validity of the contract??

    if how to form a valid contract – I will apply all the elements of a contract are proposal or offer, acceptance, consideration, intention to create legal relations, capacity, certainty, consent, and legality and explain each of the them

    If only factors I will only apply,

    This is followed by Section 14 where it states consent is not ‘free’ when it is caused by
    the following elements:
    – Coercion – S 15 (voidable)
    – Undue influence – S 16 (voidable)
    – Fraud – S 17 – (voidable)
    – Misrepresentation – S 18 – (voidable)
    – Mistake – S 21 (void) & S 23 (valid)

    March 5, 2021 at 7:48 pm #613626
    Vijay
    Member
    • Topics: 0
    • Replies: 258
    • ☆☆☆

    Hi

    This question does not appear to be from the ACCA Law exam. May I ask you where you found this question please?

    I suspect it is looking at formation i.e. Offer, Acceptance, Consideration and Intention and more specifically Consideration. But I do not know where this question is from and the intention of the writer of the question can not be determined until I know from where you found the question as it does not appear to be an ACCA LW question. Please let me know where you found this question.

    Kind regards,

    Vijay

  • Author
    Posts
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