Subject: Malaysia Contract Law (Malaysia Law)

Under Topic: Consideration, Contract Law in Malaysia

Question : "In 2010, Ramasamy borrowed RM5000 from Samivelloo repayable (without interest) on demand. in 2011, Ramasamy's father, Muthusamy, wrote to Samivelloo enclosing a cheque for RM3000 and stating: "enclosed herewith is my cheque for RM3000 in full settlement of the debt which my son Ramasamy owes you." Samivelloo whilst cashing out the cheque, wrote to both Ramasamy and Muthusamy stating that he accepted the RM3000 on account and that the balance of RM2000 remained payable. By beginning of 2012, Ramasamy had saved RM2000 and he called upon Samivelloo but Samivelloo then said to Ramasamy, "I will let you off the balance of your debt." On the strength of this, Ramasamy immediately bought himself a second-hand motorcycle. Last week, Ramasamy received a letter from Samivelloo demanding the balance of RM2000. Advise Ramasamy."

1) Format using ILAC & citation with relevant cases to support your answer.

Extra notes from lecturer, can might consider on it:-

1.Executory contractsare the ones used upon entering into an agreement by the parties involved. The act of signing the document

Executed contractsa sales contract is an example wherein they buyer fully pays the seller with full amount of money and the title has already been transferred.

Past considerationcannot be stated and included in the contract most of the time since there exists no benefits nor risks to either parties.

2. Though promises usually do not legally bind parties. In this situation, there has been an agreement in minds to paint the house and be paid in return which therefor constitutes a contract and can legally be bind.

3. Consideration is an important element of a contract. A consideration does not always have to be exact, it just needs to be of the same value as exchanged.

4.Debts can and shall be written off by the debtor. Only then can a person can be considered as free from debt.