(a) Explain the following statement under the Malaysian Contract Law : “Consideration must be sufficient but...

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(a) Explain the following statement under the Malaysian ContractLaw : “Consideration must be sufficient but need not be adequate.”
(b) Budget Travels, booked Hotel Kedekut for a 2 day healthevent for their staff. All the itinerary and the food to be servedwere confirmed already. The chef of Hotel Kedekut, who knows themanager of Budget Travels, Michael, very well has decided to makepastries and cupcakes for the health event on his own. The eventwas a success and Michael, being very delighted, promised to payfor the pastries and cupcakes to the chef on behalf of BudgetTravels but in the end he didn’t do so. Is Budget Travels under anobligation to do so?
(Total :20 marks)

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A As per the Malaysian law the consideration between two parties just needs to be sufficient as decided by the parties and not necessarily adequate as per other valuators such as the market In this case whatever the two parties decide to be a reasonable price to value ratio can be input into a contract and must be executed as such If a seller decides he wants his car sold and towed away See Answer

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