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Guarantors’ obligations
22/11/2005 The Star
The word “guarantee” is one of the most
commonly used words. And it is often used very casually and loosely. The
result is that sometimes it gives all the protection and on other occasions
very little or even none. This may come about because of the words that are
used in particular situations. In other instances it is the legal
interpretation that matters.
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Rights of guarantors
29/11/2005 The Star
Last week the liabilities of a guarantor
were discussed. And it will have been noted that the liabilities are very
extensive. It is almost as if it is the guarantor who obtained the loan.
This is even more so when those who are the beneficiaries of the guarantee
ensure that it is converted into an indemnity. This is achieved through
including a clause to say that the guarantor will also indemnify the
creditor thus placing him in the position of a principal debtor.
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Undue influence
15/11/2005 The Star
The existence of undue influence in the
formation of a contract can lead to its being flouted by the party who
claims to have been influenced to agree to it.
This is because all contracts depend on “free consent” and consent is said
to be free only if it is not caused by undue influence. This makes it
necessary to understand what “undue influence” means.
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Role of the law
03/01/2006 The Star
IT IS natural that people
and organisations in any country will face various economic, social and
other challenges which will have to be dealt with.
In the course of all this, the legal system will continue to affect our
lives. It provides comfort and hope because it regulates our lives and the
conduct of people in providing protection, relief and remedies.
Disappointment comes in when the law appears to fail to provide protection,
relief and remedies in a timely manner or even at all.
However, the law is not always to blame.
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Criticising or defaming?
10/01/2006 The Star
MALAYSIANS, like people in
many other parts of the world, are becoming more aware of their rights and
concerned with what goes on in the country that affects them directly or
indirectly.
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Trespassing problems
07/02/2006 The Star
When purchasing a
property, many considerations like its location, financial implications and
obligations are involved. The legal aspect covers all these matters and
others. A property buyer is usually represented by a solicitor. As such, it
may be thought that everything will turn out well. However, this is not
always the case.
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Constraints of arbitration
28/02/2006 The Star
When the subject of
litigation comes up in discussion, it is not unusual for the word
“arbitration” to pop up as if it is the solution to all delays and obstacles
that are often associated with litigation in courts. As useful as
arbitration may be to bring to a conclusion disputes, it is not without its
constraints and limitations.
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Being blacklisted
07/03/2006 The Star
We live in an age where
organisations are becoming bigger, transactions more complex and dealings
ever more impersonal. The reliance on procedures and guidelines in the work
flow has become greater. Even though guidelines are in place to enable
matters to proceed properly there can be cause for unhappiness. An example
is where an organisation engages in an activity which involves compiling a
list of people who have been sued. In some countries it may be called a
“blacklist”.
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Failure to agree
14/03/2006 The Star
Much has been said about
arbitration as a means of resolving conflicts. Except in the case of
statutory regulation, the route to arbitration is adopted through the
exercise of the free will of those involved in the transaction. Any
reference of a disagreement to arbitration has to be by consent of the
parties. The arbitration agreement must be in writing by virtue of the
Arbitration Act 1950.
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Authority to act
21/03/2006 The Star
In doing business it is not always possible to do
everything on your own. The others involved may be agents, employees,
partners or fellow directors in a company. On occasion, one of these
parties may enter into an arrangement with a third party, with which the
rest do not agree with. What is the effect of such a transaction when
rights of third parties have been created? To appreciate the position,
it becomes necessary to be aware that such acts can cause dissension.
Where one party has made a commitment, are those who disagree the
majority or minority? Are they shareholders or employers?
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