Section 17 Contract Act 1950 Cases

Section 17 of the Contract Act 1950 is a crucial provision in contract law, as it deals with the concept of undue influence. The section defines undue influence as any act of persuasion that is exerted on another person, so as to induce them to enter into a contract that they would not have otherwise entered into.

There have been several cases over the years that have involved section 17 of the Contract Act 1950. In one such case, Lim Siau Peng v. Lai Kui Fong [1980], the plaintiff was a 63-year-old widow who had invested all her savings in a piece of land. The defendant, who was a close friend of the plaintiff, persuaded her to sell the land to him at a price that was well below market value. The plaintiff later discovered that the defendant had sold the land at a profit, and she sued him for undue influence.

The court found that the defendant had indeed exerted undue influence on the plaintiff, as he had taken advantage of their close relationship to persuade her to sell the land to him at an unfair price. The court ordered the defendant to pay the plaintiff damages, as well as to return the land to her.

Another notable case involving section 17 of the Contract Act 1950 is Syarikat Maybank v. Wong Foong Yee [1993]. In this case, the plaintiff had entered into a mortgage agreement with the defendant, who was a property developer. The plaintiff had signed the agreement on the advice of his lawyer, who had assured him that the terms were fair and reasonable.

However, the court found that the defendant had exerted undue influence on the plaintiff, as he had taken advantage of the plaintiff`s lack of knowledge and experience in property matters. The court ordered the defendant to repay the plaintiff the amount of the mortgage, as well as to pay him damages.

These cases highlight the importance of section 17 of the Contract Act 1950, which is designed to protect individuals from being unduly influenced into entering into contracts that are unfair or unreasonable. As a professional, it is important to ensure that any articles or content related to contract law and section 17 are clear, concise, and accurately reflect the legal principles and precedents involved. By doing so, we can help educate and inform readers about this important area of the law.

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