Chapter 2 - Pre-Litigation Issues - Exceptions to Limitation Period

Question 1

OVERVIEW

Answer 1

1) Disability
2) Part-payment or acknowledgement of debt
3) Fraud or Mistake

Question 2

EXTENSION FOR DISABILITY

The law

Answer 2

S.24 LA:

• One year from the date of cessation from the disability.

Question 3

EXTENSION FOR DISABILITY

The procedure

Answer 3

O.76:

• Procedure to bring an action for against person under disability.

Question 4

PART-PAYMENT OR ACKNOWLEDGEMENT OF DEBT

The law

Answer 4

S.26 LA

• fresh accrual of action on acknowledgement of debt

S.27 LA

• acknowledgment must be in writing

Question 5

PART-PAYMENT OR ACKNOWLEDGEMENT OF DEBT

Issues on S.26

• whether needs to be principal debtor

Answer 5

TNB v Pearl Island Resort Development:

• S.26 covers third party other than the principal debtor.
• A person liable for the debt may or may not be different from the person who is accountable for the debt.

Question 6

PART-PAYMENT OR ACKNOWLEDGEMENT OF DEBT

Issues on S.26

• acknowledgment by letter

Answer 6

Tenaga Nasional Bhd v Kamarstone Sdn Bhd

• letter acknowledging the debt will activate S.26.

Question 7

PART-PAYMENT OR ACKNOWLEDGEMENT OF DEBT

Issues on S.27

• Whether SMS qualifies

Answer 7

Yam Kong Seng v Yee Weng Kai (FC, 2014)

• SMS satisfied the writing & signature requirement under S.27.

Question 8

FRAUD OR MISTAKE

Overview

Answer 8

1) The law
2) Scope of fraud
3) Test for fraud
4) Test for mistake

Question 9

FRAUD OR MISTAKE

The law

Answer 9

S.29 LA

• period shall not begin to run until the fraud or mistake has been discovered.

Question 10

FRAUD OR MISTAKE

Scope of fraud

Answer 10

Yong & Co v Wee Hood Teck Development

• includes constructive or equitable fraud

Question 11

FRAUD OR MISTAKE

Test for fraud

SR, UT

Answer 11

Yong & Co v Wee Hood Teck Development

• conduct with regards to SPECIAL RELATIONSHIP;
• it is an UNCONSCIONABLE THING to do.

Question 12

FRAUD OR MISTAKE

Test for mistake

Answer 12

Fong Tak Sin v Credit Corporation (M) Bhd

• mistake must have certain CONSEQUENCES & P is seeking relief from the consequences;
• mistake must be ESSENTIAL ingredient to the cause of action.