for illegal contracts, one needs to look at Section 24 which states:-

“The consideration or object of an agreement is lawful, unless-

(a) it is forbidden by a law;

o HEE CHENG V. KRISHNAN (1955) MLJ 103

(b) it is of such a nature that, if permitted, it would defeat any law;

o TAN BING HOCK v. ABU SAMAH (1968) 2 MLJ 221

(c) it is fraudulent;

o PALANIAPPA CHETTIAR V. ARUNASALAM CHETTIAR (1962) AC 294;

MLJ 143

(d) it involves or implies injury to the person or property of another;

o SYED AHAMED ALHABSHEE V. PUTEH (1922) 5 FMSLR 243

(e) the court regards it as immoral, or opposed to public policy.

o PEARCE V. BROOKS (1861] All ER Rep. 102

Illegal contract are enforceable in court of law.

SOGA

5 implied conditions

1) Implied conditions as to Title

Section 14(a) Soga

Seller has the right to sell the goods in the case of a sale

In the case of an agreement to sell, will have the right to sell the goods when the time comes for
the buyer to become the owner.

Breach of this condition entitles the buyer to repudiate the contract

Rowland v Divall(1923)

2) Sale by sample

 Section 17 SOGA 1957

 The bulk shall correspond with the sample in quality
 The buyer shall have a reasonable opportunity of comparing the bulk with the sample.
 The goods shall be free from any defect rendering them unmerchantable which would not
be apparent on reasonable examination of the sample.

o Godley v Perry(1960)

3) Implied condition that a sale of goods by description, the goods must match the description
 Section 15 SOGA 1957
 Goods must match both reference as well as description.
o Varley v Whipp(1900)
o Beale v Taylor(1967)
o Associated Metal Smelters Ltd v Tham Cheow Toh(1971)

4) Goods must be of merchantable Quality

o David Jones Ltd v Willis(1934)

o Reveex International, SA v MACLAINE Watson Trading(M) Sdn Bhd(1991)

Merchantable Quality include:

 Price
 The description applied to the goods
 Whether the purpose of the goods had been made known to the seller
 Any other circumstances relevant to the sale