Consideration in Contract Variations: Fresh Consideration, Extrinsic Evidence and the Limits of Parties’ Intention
Kuala Dimensi Sdn Bhd v Port Kelang Authority [2025] 3 CLJ 497
Can contracting parties mutually agree to vary the terms of the agreement, specifically the agreement on consideration? If a variation of the consideration clause is executed with the agreement of contracting parties, can the varied clause nevertheless be rendered null and void under Section 26 of the Contracts Act 1950 (“CA 1950”)? Further, where a party alleges that consideration is absent, must consideration be proved solely within the four corners of the written agreement, or may it also be established through extrinsic evidence?