Father-in-law of Europe Essay Sample
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Father-in-law of Europe Essay Sample
I hope you are doing well. Recently, you wrote to us that you believe that the second agreement you have entered with ABC company was void as the consideration was inadequate. However, you also mentioned that your father-in-law, Kasim contended that both agreements that you entered together with your father-in-law and ABC company were void because lack of good considerations. Specifically, you have asked for advice on the question whether there were good considerations between you and Kasim that made both agreements enforceable or void. After researching the issue and based on the facts set out below, I believed that a court would likely conclude that there are good considerations in both agreements and hence, both are enforceable and legally binding in law. I will explain this conclusion fully below after first setting out the facts as I understand them.
You, Mr. Ahsan in the first agreement, had agreed to sell your house for RM180,000 to Kasim in consideration for him being your guarantor for your Phd scholarship agreement and you marrying Rokiah, Kasim’s daughter. In the said agreement, it was stated that the vacant possession will be transferred to Kasim after he completed the full payment of the house. The agreement was formally written down and signed before you leave for your study.
Then, you had entered into a second agreement with ABC company that took Kasim’s liability in paying the full settlement of the house and you had reduced the price of the house to only RM100,000 due to your financial crisis. However, after ABC had settled the full payment one week after the offer was made, you contended that the price was inadequate and refused to hand over the vacant possession to Kasim. You have asked for this law firm’s opinion whether there were good considerations in both of the agreements.
Under this facts, the court would likely apply that a good consideration is what has been agreed to give benefits and have values to both parties, in which a court rely on the definition that consideration must have some rights, interest, profit or benefit to both parties. The court has considered the question of the first agreement to focus on three related considerations. The first consideration is whether being a guarantor is a form of good consideration. For example, when a person has willingly become a guarantor for a principal debtor and when the principal debtor has failed to fulfil the contract, it means that the guarantor will be liable on behalf of the principal debtor. Thus, it means that being a guarantor has economic value and the court held that there is a consideration for being a guarantor.
The second consideration is whether marriage is a valuable consideration. For instance, the court held that marrying someone would constitute consideration as it involved incurring financial responsibilities. Where such a consideration exists, it means that whenever other elements of law which are offer, acceptance and intention to be legally binding also present, a valid contract is already formed. Even though it is proven that there is no consideration, if there is already a proven, signed or stamped written contract, the contract is concluded.
For the second agreement, the court has considered this question to focus on two related considerations. The first is whether the bargain that has reached mutual agreement is considered as valid offer. For example, when two parties want to enter into an agreement, a court held that they have to reach meeting in minds and mutual agreement. Thus, whenever mutual agreement is reached that constitutes a valid contract which is legally binding.
The second consideration is whether the good consideration can be reached if the price value is inadequate. For example, a court held that as long as the consideration is sufficient and has value in economic terms it is already considered as a good consideration. Where such inadequacy of consideration happened a court held that they are not the one who determines on the adequacy of the consideration which has reach mutual agreements by the end of the parties’ bargain.
Even if it is proven that the value of the house is inadequate, but in law the consideration not in need of adequacy whereas it is valid as long as it is sufficient and has value from economic terms.
Applying these legal rules to your case supports to conclusion that both agreements have reached good considerations and are enforceable in law. 10. 11.
Furthermore, the absence of facts for your case is that there is no proof that you make both agreements with reluctance and under duress. Although you might claim that you are not in the good state of mind when you had your financial crisis, for example, offering the full settlement for only RM100,000, there was still more than a week gap whereas that week is sufficient enough for you to revoke the offer that you made earlier before ABC company settled the payment.
To sum up, based on the facts as I had stated above, I believed that a court would conclude that both agreements have good considerations which amounts to enforceable agreements. Thus, the second agreement might supersede the first agreement in which the favour of the court’s decision might go to Kasim. To avoid the possibility of further claims at this point, I would recommend that, going forward, you should have think through before making any decisions into entering any agreements.
It is essential to be done to avoid regrets in the future. I hope you can seek legal advice before making any bargains and entered into a new contract. Even if legal advice might cause you a bit, but suffers and losses will cost you more in the future. I hope this is helpful even though on the balance of probabilities, the favour of the court might not be with you in this case. I would be happy to discuss this matter with you further. Please feel free to contact my office at 019-2345678. If you have questions or would like to set up an appointment with me, feel free to do so. Thank you.