Commercial Law - 1069 Words

ABDUL RASHID ABDUL MAJID v ISLAND GOLF PROPERTIES SDN BHD [1989] 3 MLJ 376 ISSUE In this case, the issues is whether the board was entitled to levy and collect fees known as development fees from members? PRINCIPLES The defendants owned, managed and operate a social golf club. Membership of the club is of the following types which are honorary membership, ordinary membership, ordinary transferable membership, subscribing membership, institutional corporate membership, expatriate transferable membership, ordinary social membership, term membership and visiting membership. Under the Rule 3 of the club’s rules provided, inter alia, that the club was a proprietary club, of which the defendants were the proprietors with a board of directors†¦show more content†¦The offer for membership came from the defendants after they had considered the plaintiff’s application. The contract between the plaintiff accepted the offer by making the payment of the entrance fees and the first subscription. Therefore, the declaration in the application forms as not part of the contract. It is just an antecedent communication. The only contract between the plaintiff and the defendants was the rules of the club. The authority to levy fees must clearly be given by the rules of the club and there was no such authority under the rules. Rule 33 clearly made the board the sole authority for the interpretation of the rules and as it purported to oust the court from their jurisdiction the rule was contrary to public policy and therefore void. 3|Page CONCLUSION The conclusion for this case is the board was not entitled to levy and collect fees known as development fees from members. For the interpretation of the rules, this is contrary to public policy and therefore void. Thus, a declaration of intention or an invitation to treat, so, all fees collected as development fees are repaid to the plaintiff and costs to be paid by the defendants. Otherwise, the offer must be communicated to the offeree which under Section 9 of the Contract Act 1950 is the exercise of power by the offeree indicating his assent to the transaction in response to the offer. TheShow MoreRelatedCommercial Law And International Trade Law Essay850 Words   |  4 PagesI have chosen a career in commercial law due to several reasons.Firstly,I thoroughly enjoyed Law of Contract in first year and am thoroughly enjoying Land Law and International Trade Law in second year.I can see myself working in these and similar areas of law for the rest of my life. Secondly,I have a keen interest in the business world.A career in commercial law will allow me to work at the intersection of law and business.Crucially,I will get the chance to work on important business deals andRead MoreInternational Law And International Commercial Law2197 Words   |  9 Pagesprocedures, which parties of international commerce make, will bring different results. 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