Reg v Willans

I was asked to read the case Regina v Willans and to figure out certain issues on the introduction of English Law to Malaysia – how it was brought in and what effects it had. This case is only a landmark for Malaysian and Singaporean Law as it highlighted the situation before and after the Charter of Justice 1807 was brought into Malaysia.

one frequently sees conversing together five people, of whom no two obey the same laws – R v Willans

Material Facts and Issues.

An agricultural labourer, Chivatean, absented himself from his service while under contract. Chivatean was sentenced to two months’ hard labour previously, for a similar offence and that upon completing his sentenced, he refused to return back to complete his contract.

As a result, he was apprehended again and brought before the magistrate again for the second time and the magistrate refused to adjudicate as he decided that he could not punish Chivatean again under 4 Geo IV C.34 for breaching the same contract a second time.

The issue is whether or not the magistrate’s refusal to adjudicate on this was well founded in Law (particularly what Law).

Why no Law could be considered lex loci in Penang when it was ceeded.

As Penang was ceeded by the Sultan of Kedah to a quasi-sovereign entity – EIC – the question of what law was lex loci at the time only applies to either British Law or Kedah Law. Based on the general rule of law, if an existing land was ceeded, the existing Law should continue for such time until changed by the new government; and if the land was empty, the Law of the occupiers should be used.

Unfortunately, Penang was neither a colony in the ordinary sense of the word as it was ceeded to the EIC by the Sultan of Kedah, nor was it uninhabited as there were several Malay families (most likely nomadic fishermen) encamped upon it when first occupied by the British.

While the British who came with Captain Francis Light were bound by British Law, the nature of their temporary occupancy on the island hardly suggests that the same Law applied to the rest of the inhabitants of the island. So, British Law was only considered the Law applied to the garrison and their people.

While the bulk of the early settlers were Chinese, Malays and Indians, none could establish their respective laws in a British possession and the few early English settlers were not there to establish a permanent settlement but were there in a temporary nature (possibly as traders or workmen).

While Kedah was the prior owner of the land, it is also not possible to assert that Kedah Law continued to be enforced on the island due to the lack of any legal institutions nor authority on the island at the time it was ceeded. Furthermore, it is difficult to hold a Christian government to adopt Islamic Law (that required Muslim Judges and witnesses) as the lex loci.

Therefore, neither Kedah Law, British Law, nor other Laws of the early settlers were considered lex loci at the time.

What Law applied in Penang in the first 20-odd years of being ceeded.

As a result of this situation, no clear law applied to the island during the early years and the Commandant of the garrison was left with the task of maintaining order amongst the early settlers.

Crime was punished by a kind of martial law that the GG considered appropriate to the offence. In personal matters, as may systems of law were in force as there were nationalities on the island tempered by the sense of natural justice of whichever magistrate constituted the Court of Appeal at the time.

Therefore, English Law was not even recognised as the law of its English inhabitants as reflected clearly in the way the place was first run.

What factual evidence refuted any contention that English Law ever applied in Penang at the time.

Captain Light was directed in 1788 to preserved good order in the settlement, not by punishing those who offended against it according to English or other Law but by confinement or other common punishment. This was largely due to the temporary nature of their settlement. For the non-British subjects, he generally sent them to Calcutta for trial for serious crimes.

However, the jurisdiction of the Calcutta courts did not extend to the island and in 1793 the AG there could not adjudicate over any serious criminal matters sent there from the island. This gap in legal jurisdiction allowed criminals to roam free on the island as late as 1805.

Even in case of Civil Laws, the evidence shows that slaves were openly bought and sold and taxes were imposed by sole authority of the local government. This opposed two principles of English Law – that makes a slave free within the jurisdiction of British Law, and that protects subjects from taxation without representation.

While there were Courts and Judges on the island before the Charter, the justice which they administered within their jurisdiction was not in accordance with the rules of English Law but merely according to their own notions of what was just.

What Law did the CoJ 1807 introduce into Penang.

It must be presumed that the CoJ 1807 was granted with the knowledge of the sad state of affairs on the island at the time.

Although the CoJ did not explicitly introduce English Law into Penang, it can be argued that the wording of the CoJ 1807 directed that it should be administered on the island and therefore, it introduced English Law into the island. The only issue then is to what extent did it introduce English Law.

What extent did the Law introduced by CoJ 1807 apply to Penang.

The extent to which English Law applied is then a matter of construction.

With regards to Criminal Law, the language of the CoJ 1807 is explicit that it requires the Courts to administer Criminal justice in such or the like manner and form or as nearly as the conditions and circumstances of the place and people will allow, as in England.

Based on this, the J concluded that the same must apply to Civil Law too. However, the wording of the CoJ 1807 directs the court to administer justice and right, without expressly stating what body of law is to be applied.

As the CoJ was issued from a competent authority in England, therefore, due to the lack of any other direction, it is presumed that English Law must apply.

What criteria determined whether 4 Geo IV C.34 was applicable in Penang.

The mischief that it was designed to prevent was in no way peculiar to any specific geographic locale. There was also an acute shortage of labour that made it difficult to replace any defaulting labourer.

Furthermore, the machinery by which the the mischief is remedied is in full force and operation in Penang as a result of all the Charters – both Justices of the Peace and a House of Correction. As both the mischief and the means to redress it exist both in England as in Penang, therefore the 4 Geo IV as law on the island must be enforced.

The principle is that the Act is applicable to the situation in Penang and the mechanism to administer it is present. Therefore, the Act must be enforced.

Whether Magistrate Willan’s refusal to adjudicate was founded in Law.

From the judgement, Magistrate Willan’s refusal to adjudicate is founded in Law under that of double jeopardy. However, it was not sufficiently well founded as he failed to account for the Mischief Rule – that is to ensure that the law corrects the mischief that it is supposed to correct.

By refusing to adjudicate, the magistrate would allow the wrong-doer to take advantage of his own wrong-doing, which is not what the law was intended to do. Therefore, the magistrate should have heard and adjudicated on the case.

Offer, Acceptance

Offer and acceptance are two important creatures in a contract because they are the only two constituents of a valid contract that are action (or inaction) based and generally objective – consideration and intent are very abstract while capacity is defined clearly in legalese. Therefore, it is important to have a good understanding of the two.

According to my understanding, the most important ingredient of the two is the intention behind the action or inaction – not the words. That said, the wording is still important as it can show intent.

Offer
An offer can only be made if the other party knows about it – whether through an advertisement, direct communication, etc. So, an offer uttered in the privacy of a bedroom without being made known to anyone else, is not an offer. For most start-ups, this may not be a problem as they tend to market themselves heavily these days, via social networks.

The next thing is that an offer needs to be clear. Now, some start-ups may struggle with this as they may still be trying to find out what it is that they’re selling. But besides that, it is not generally an issue to clearly communicate the intent of selling a product or service in exchange for certain amount of money.

The only critical thing is to differentiate an offer from an ITT. It is done based on intent – whether the person issuing the offer intends for someone to enter into a contract upon accepting the offer. So, if we clearly communicate that the quoted price is negotiable, this constitutes an ITT as we’re soliciting offers to buy.

Acceptance
An acceptance must also be communicated to the party making the offer – whether through a written letter, phone call, etc. The catch here is that a posted acceptance is legal on the date it is sent while it can be retracted any time before it is received. So, someone can legally mail an acceptance while still reserving the legal right to cancel it via a phone call any time before the letter arrives. This is the reason why getting something receive-stamped and signed-for is critical.

Also, an acceptance must be clearly differentiated from a request for more information, and a counter-offer. The only difference between them seems to be the wording of the intent – whether the party issuing the acceptance wishes to be bound into a contract upon the communication.

If someone issues a PO changing the terms of payment, that would generally constitute a counter-offer and it would require the party making the offer to accept the new payment terms. If someone sends a letter asking if they could make payment in instalments instead, that would generally constitute a request for information.

There is one thing to be careful about offer and acceptance is that the final terms must be agreed upon by both parties without change. If any party makes unilateral changes, that constitutes a counter-offer.

Contracts
A contract does not generally need to be written down as a verbal contract is still a contract. Unfortunately, verbal contracts are more difficult to prove and that is why a written contract is generally preferred, even if it is just written down on a single sheet of paper with very little legalese.

Depending on how close a business relationship is, one can also enter into a legal contract verbally followed up by a written contract merely for formalisation. If this is not the intent, it must be clearly communicated during the verbal exchange that things are subject to contract i.e. things only take effect from the date of signing the contract.

However, even written contracts must be worded carefully as a wrongly worded contract may render the contract void. An example is if the contract contains terms that explicitly bar a party from suing the other party in case of a breach, etc. Those kind of terms would not be accepted even if both parties signed off on it.

The good thing about studying contract law is that there is a lot of case law to support it. I have just made a list of cases that I need to read for Contract and it is a really long list. Also, there are plenty of illustrations in the statute as well, which serves to clarify some of the legal points.

PS: The only criticism that I have of Pn Izura’s teaching is that she’s teaching Contract as a really dry subject that is just exam focused. However, this may just be because we’re still at the early stages of Contract and things may get more exciting later, when we handle breaches and remedies.

Identify a Contract

It turns out that Pn Izura is less boring than I had imagined. Today’s class on Contract turned out to be fairly interesting and I learned quite a lot of things. Our lesson today focused on the most fundamental issue with contracts, which is – what exactly is a contract.

A friend of mine asked me to try to blog about the law as it applies to start-ups and this topic is probably as good a place to begin as any. So here goes. But before I begin to define what is a contract, I must preface this with a few disclaimers.

As Pn Izura says – there are general rules, exceptions and the reasonable man. I’ll just focus on the general rules here as they apply to start-ups and ignore most of the exceptions, which are what is likely to bite a person in the arse if we’re not careful.

Also, she noted that Malaysian Contract Law is a rather unique creature, being distinctly different from other Common Law countries. While the words and definitions may be the same, the interpretations can be wildly opposite.

To keep things simple – a contract is any agreement enforceable by law and must generally consist of the following five elements: offer, acceptance, consideration, intention, and capacity.

Offer
This may sound simple but an offer isn’t necessarily always an offer. An offer must be certain and must be legal. An offer must also be communicated to the other party.

In terms of general business communication, as a general rule, when a party asks for a price quote – that’s a request for information. When a quotation is issued to that party – that constitutes an offer. So for most intents and purposes, the quotation can become a legally binding document.

An offer must be differentiated from an invitation to treat (ITT). As a classic example – all goods displayed on a shelf are considered an ITT. An offer to buy is made when the customer brings the item to the cashier for payment.

An advertisement in a paper could also constitute an offer, depending on situation. If the advert is from a manufacturer for suppliers, distributors etc, it is generally considered an offer while an advert from the resellers are generally considered an ITT.

While I have not actually read the Electronic Commerce Act, which spells this out clearly, I’m guessing that a similar analogy can be drawn for items on display in a web-store.

Acceptance
As before, an acceptance is not always an acceptance. It is important to know what is an acceptance because an offer becomes legally binding upon acceptance. An acceptance must be communicated. An acceptance must be complete i.e. with no modifications to the offer. Otherwise, it becomes a counter-offer, which is a whole other can of worms.

As a general rule, since the quotation constitutes an offer, the purchase order becomes a clear communication of acceptance. Now, the key issue of contention then typically revolves around when an acceptance is communicated.

In a clear case, if the acceptance is a document such as the PO, the date of acceptance is when the document is posted out (even if it was never received by the party making the offer). A verbal acceptance is made when the party making the offer ‘hears’ of it. It is less clear when an acceptance is in the form of a conduct. It can also be in a very narrow form of silence.

Like I said, it’s complicated.

Consideration
Consideration, in layman terms can be considered ‘win-win’ i.e. I get something, you get something. Of course, both of these ‘something’ must be perfectly legal.

It’s very clearly stated under S.26 of the law that if there is no consideration in the contract, it is void. There are very narrow instances where consideration is not needed to constitute a contract but these situations are less likely to occur in normal business situations.

Now, one major quirk with Malaysian Law is the different position we take with regards to ‘past consideration’. An example of this would be making an offer of payment for work done voluntarily by some good samaritan. In other countries, it’s not a contract but in Malaysia, a contract is entered into the moment the offer is made because the acceptance has already be performed in advance.

Talk about quirky – we can accept an offer before it is even made. I attribute this to your cultural situation in the country, where people are just very ‘nice and helpful’ in general.

Intent
This one is easy. As a general rule, all commercial contracts are presumed to be with intent. Therefore, if someone wants to wriggle their way out of a commercial contract, they would need to prove that there was no intent.

The general rule has evolved from interpreting the words in the contract to the intent behind the contract. What this means is that simply printing something like, “this contract is not legally binding” or “this is not a contract” will no longer fly with the courts.

Capacity
This is even easier. As a general rule, any adult of sane mind has the capacity to enter freely into a contract. The only catch when it comes to start-ups might be when the person is a minor under the law (under 18). So, care must be taken when dealing with start-ups run by teenagers but otherwise, things are simple.

In summary, an offer is made when a quotation is given and an acceptance occurs when a PO is sent out. As long as both parties get something, a contract is entered into because intention is presumed in business contracts. Care needs to be taken when dealing with kids.

That’s about as simple as it gets.

PS: Of course, there are plenty of exceptions and case-by-case basis considerations. That’s why we need lawyers.