Pop Quiz : Contract Law

A contract is considered voidable when​ _____________.

• it is not in writing

• it is illegal

• one party has the option to rescind it

• it missing the essential elements

Which of the following is NOT a common factor that can make a contract voidable?

• Uncertainty

• Fraud

• Misrepresentation

• Coercion

Sarah wants to sell her used laptop. She intentionally alters the laptop's settings to make it appear faster and more powerful than it actually is. She then sells it to Tom at a premium price, claiming it's "like new."

Identify what is the factor of voidable contract for the above situation?

• MISREPRESENTATION

• FRAUD

• UNDUE INFLUENCE

The relevant provision for undue influence is Section 16 of Contracts Act 1950.

• True

• False

Alice agrees to buy a specific painting from Bob, both believing it's an original Monalisa. Days later, they discovered that the painting is a very good forgery.

Identify what is the factor of voidable contract for the above situation?

• Mistake

• Misrepresentation

John needs to sell his car quickly. Peter threatens to physically harm John's family if John doesn't sell him the car for a ridiculously low price. Fearing for his family's safety, John agrees.

What are the possible effects for the above scenario?

• The contract is voidable due to lack of free consent on John's part.

• The contract is voidable at Peter's option.

• The contract is still valid until John choose to rescind it.

• The contract is voidable under coercion.

A real estate agent, Mia, tells potential buyers that a property is "free from any flooding risk," relying on outdated information she hasn't verified. Datin Aira buys the property based on this statement, only to discover it floods regularly.

Choose the correct factor of voidable contract based on the above scenario.

• Fraud

• Undue influence

• Mistake

Identify a relevant case for coercion.

• Inche Noriah v Shaikh Ali Bin Omar

• Raffles v Wichelhaus

• Chin Nam Bee Development Sdn Bhd v Tai Kim Choo & Ors.