NORMAN DISNEY & YOUNG v. AFFIFI HJ HASSAN [2011] 1 CLJ 210 [2010] 1 LNS 514

COUNSEL & SOLICITOR:
For the defendant – Lim Kian Leong (Rachel Tan Pak Theen with him); M/s Lim Kian Leong & Co

High Court

CIVIL PROCEDURE: Striking out – Action – Plaintiff’s action against defendant based on contracts with unlawful objects and/or consideration – Defendant applying to strike out action – Pointless for plaintiff to go to trial

CONTRACT: Void contract – Consideration unlawful – Contract attempting to circumvent requirements of statute – Such contract void under s. 24(a) and (b) of Contracts Act 1950 – Impossible to sever unlawful part of contract from lawful part – Such severability prohibited under s. 25 of Contracts Act 1950 – Contracts Act 1950, ss. 24, 25

CONTRACT: Illegality – Contravention of law – Contract attempting to circumvent requirements of statute – Such contract unlawful – Approach of court when illegality suspected

CONTRACT: Illegality – Public policy – ‘Ali Baba’ type of companies – Contracts to establish such companies illegal and contrary to public policy