BIZ LAW SEM 6
Concept question
a. Minor<18 in Singapore. The law is to protect minors from entering into contracts because
they may not fully appreciate the consequences of their action.
Minor’s contract act.
Below 21 cannot deal in land for more than 3 years or legal proceedings, trust.
Below 18 other contracts
Minor’s contract
1. Valid contracts: binds the minor and the other party, through beneficial contracts for
necessaries(reasonably required by a minor at that station in life). This is supplied by one
party and the minor must pay if deemed necessary
The other criteria is executory contracts for necessaries- minor is not bound until the
goods are delivered. One party must perform the obligation before the contract is
binding upon the minor.
Loan for necessaries: only if there is a gurantor. If not a person who lends money to a
minor cannot enforce the contract.
Beneficial contract for employment: as long as thee contract is beneficial to the minor
2. Voidable contract: minor entitled to repundate the contract.
Normally with recurring future obligations. Lease, partnership and shares. Unless the
minor repudiates with reasonable time, the contract is enforceable.
3. Ratifiable Contracts, residual class. If the minor contr4act is not valid or voidable, it is
ratifiable. The contract is not valid or enforceable unless he comes of age.
b. Misrepresentation is a tort or fraudulent misrepresentation is rooted in the tort of deceit.
It is a false statement that is made by one party to another False statement of fact: cannot
be opinion or statement of some likely future event. Tan chin seng V raffles town club.
It must be relied upon causing loss. Misrepresentation must be relied upon and induce the
contract.
Inducement makes a false statement to be a misrepresentation. If no inducement, there is
no misrepresentation.
3 type of misrepresentation
Fraudulent misrepresentation: false statement made knowingly or without belief in its truth
or recklessly careless.
Panatron V Lee Cheow Lee
Negligent misrepresentation: made without due care, without reasonable ground to believe
in the truth of the statement.
Howard marine V A odgen: didn’t check register
Innocent misrepresentation: without fraud or fault. The guy believe in its truth.
. the contract is then misrepresented and remedies can eb made such as rescission, damages
and indemnity.
C. restraint of trade. It can only stand if it is reasonable. It must protect the legitimate
interest of the covenantee.
It must be of reasonable scope in terms of period, location, scope and subject matter.
It cannot be contrary to public interest.
D
i. Gaming and wagering. The law which forbids it. Civil Law Act. As such, there are no
legal effects of such contracts of wagering and betting. Money won or loss in suhc a
contract cannot be recovered. Premises are prohibited for betting or gaming under
betting act.
ii. Contracts are held to be illegal as they contracvene public policy. This is due to the
fact that lending out an apartment goes against the betting act. By going against that
public policy, it is deemed to be illegal.
