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Contracts Act 1950 [Act 136]

30 Agreements void for uncertainty

Agreements, the meaning of which is not certain, or capable of being made certain, are void.

ILLUSTRATIONS

(a) A agrees to sell to B "a hundred tons of oil". There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.

(b) A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce. There is no uncertainty here to make the agreement void.

(c) A, who is a dealer in coconut oil only, agrees to sell to B "one hundred tons of oil". The nature of A's trade affords an indication of the meaning of the words, and A has entered into a contract for the sale of one hundred tons of coconut oil.

(d) A agrees to sell to B "all the grain in my granary at Ipoh". There is no uncertainty here to make the agreement void.

(e) A agrees to sell to B "one thousand gantangs of rice at a price to be fixed by C". As the price is capable of being made certain, there is no uncertainty here to make the agreement void.

(f) A agrees to sell to B "my white horse for five hundred ringgit or one thousand ringgit". There is nothing to show which of the two prices was to be given. The agreement is void.


31 Agreements by way of wager void

(1) Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which any wager is made.

Exception in favour of certain prizes for horse racing


(2) This section shall not be deemed to render unlawful a subscription or contribution, or agreement to subscribe or contribute, made or entered into for or toward any plate, prize, or sum of money, of the value or amount of five hundred ringgit or upwards, to be awarded to the winner or winners of any horse race.

(3) Nothing in this section shall be deemed to legalise any transaction connected with horse racing forbidden by any written law.


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