1. It was made under undue influence, when Ahmad could have lacked the capacity to make a binding contract. In addition, at that time, Sandhu disclosed that the land was being sought after by many other parties as a way of piling unnecessary pressure on Ahmad.

2. There was no intention to create a legal relation because the additional commission represents a counter-offer. Since the earlier offer was fully documented, this additional offer should have also followed the same process if the company intended to be legally bound.

3. There is lack of consideration to back this additional contract. In the first place, the main contract with Sandhu was made in view of his negotiation skills. So what is Sandhu expected to offer the company in exchange for the extra commission? Nothing.

Explanation:

GHB cannot be expected to promise 0.5% extra commission on a deal, which was equivalent to RM2 million, when an already executed contract for 3% commission had been reached. One can also claim that Ahmad, who suffered from occasional dementia, could have made the promise without the intention for it to be binding on his company but as a way of encouraging Sandhu to close the deal in favor of GHB. Was the deal closed because of the extra commission? No.

6 0

3 years ago