Question
With reference to the relevant provisions of the Contracts Act 1950 and decided cases, analyse the situations given below. Hamzah agreed to purchase a house
With reference to the relevant provisions of the Contracts Act 1950 and decided cases, analyse the situations given below. Hamzah agreed to purchase a house from Ali Property Development at RM660,000.00. Hamzah was told unless he pay an additional amount of RM20,000.00 the house will not be secured for him. Hamzah then paid the additional amount. Meanwhile, Hamzahs wife Julia has rented out her apartment in Puchong of RM2,000.00 for 3 days to Miss Jenny who planned to attend a wedding in Kuala Lumpur. Miss Jenny paid a deposit of RM1,000.00 on entering into the contract with Julia and the balance is due on the day she check into the apartment this week end. Today Miss Jenny called Julia and told her she no longer want to stay at her apartment as the wedding has been cancelled due to the bride and the groom are suspected of positive COVID19 patients and must undergo a few procedures throughout this weekend. Can Hamzah allege that Ali Property Development had forced him to pay the additional amount and therefore the contract is voidable at his option? Advise Julia who is seeking to recover the balance of RM1,000.00 from Miss Jenny.
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