Malaysian contracts act 1950 pdf

By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. To browse Academia. Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Shahirah Azlan. A short summary of this paper. It is silent about the emerging new issues on the Internet contracts.

When technology advances the law lags behind. So, the oldlaws are usually modified to adapt tothe new environment. At present time electronic commerce isexpanding very rapidly everywhere on the globe including Malaysia. Millions ofcustomers are buying goods and services on the Internet. As a result volumes of contracts are made on the Internet. Some of the disputes which are now arising out of the online contracts are new and the existing contract laws in Malaysia areunable tosolvethose problems, such as the validity of using data message toform a contract, the requirement ofwriting and signature on paperforcertain contracts, time of dispatch and receipt of data message, time when an electronic acceptance is effective, whether postal rule or receipt rule will beapplicable on the Internet contract and soforth.

ABSTRAK Akta Kontrak Malaysia menipakcm satu perundangan yang lama yang secara asasnya memperuntukkan peraturan postal terpakai kepada kontrak yang terbentuk dengan cam penghantaran surat melalui pos. Perundangan ini membisu tentang isu- isu barn mengenai kontrak melalui Internet. Apabila teknologi berkembang, undang- undang ketinggalan di belakang. Dengan itu, undang-undang lama perlu dipinda seiringan dengan persekitaran barn.

Kini, perdagangan elektronik sedang berkembang dengan pesatnya dimana saja di dunia termasuk Malaysia. Berjuta manusia membeli barangan dan memperolehi perkhidmatan melalui Internet, mengakibatkan banyak kontrak terbentuk melalui Internet.

Sebahagian daripada pertikaian yang timbul kini secara atas talian adalah permasalahan barn, seperti keesahan penggunaan mesej data untuk membentuk kontrak, keperluan bertulis dan tandatangan atas kertas bagi sesetengah kontrak, masa penghantaran dan penerimaan mesej data, masa penerimaan secara elektronik menjadi efektif sama ada peraturan postal atau peraturan penerimaan akan digunapakai bagi kontrak melalui Internet dan Iain-lain. Undang-undang kontrak sedia ada diMalaysia tidak berupaya menanganipertikaian-pertikaian jenis ini.

Christopher T. The Contracts Act Malaysia was amended in If we read carefully the provisions of the Act related to the formation of contracts, we will find that the Act provides basically the postal rule also known as 'mailbox rule' for the formation of a contract.

It does not specifically mention which rule will be applicable for online contract: postal rule or receipt rule. Section 4 of the Contracts Act Malaysia provides that: 1. The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. The communication of an acceptance is complete: a. As against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor; and b. Illustrations a and b of section 4 of the Contracts Act provides: a.

A proposes, by letter, to sell a house to B at a certain price. The communication of the proposal is complete when B receives the letter. B accepts A's proposal by a letter sent by post. The communication of the acceptance is complete: i As against A, when the letter is posted; ii as against B, when the letteris received by A.

Section 4 2 of the Contracts Act Malaysia provides two types of rules for the communication ofacceptance, such as postal rule and receipt rule. Section 4 2 a states that the communication ofacceptance iscomplete against theproposer, when the letter communicating the acceptance isposted, nomatter whether the proposer receives itornot; orhe receives itvery late.

This isclearly postal rule. Section 4 2 b states that the communication of acceptance is Christopher T.

Is The Contracts Act Malaysia Suitable On The Internet complete against the acceptor when the letter communicating acceptance is received by the offeror. This is clearly receipt rule.

InMadam Loll Sai Nyah v. American International Assurance Co. Ltd,15 the Court of Appeal, Kuala Lumpur considered and explained the application of section 4 of the Contracts Act The premium for the insurance was paid on 24 June to an insurance agent of the respondent company.

On 26June the insured met with a fatal road accident and died. The premium was received by the respondent insurance company on 27 June, i. When the appellant claimed the sum insured under the policy, the insurance company refused to pay saying that there was no insurance contract made binding the company and therefore the company was not bound to pay the money under the insurance contract.

The High Court and Court of Appeal held that no valid insurance contract wasmade as theproposal form was received by therespondent insurance company four days after the death of the insured and there was no acceptance by the respondent company by issuing the insurance policy. To be a binding insurance contract the proposal form and premium should be received and accepted by the respondent and the acceptance should becommunicated to the insured.

The insurance company is only bound to pay under the insurance policy when the acceptance of the proposal comes to the knowledge of the insured or the insurance policy was received by the insured. The High Court observed as follows: Fromthe facts oi this case, it is clear that the proposal had notcome to the knowledge of the defendant, because the proposal was only received at the defendant's office on 30 June , whereas the deceased had died on 26 June Furthermore, even if the proposal had come to the knowledge ofthe defendant which in my judgment ithad not therewouldstill be no contractas against thedefendant until the acceptance hadcometo the knowledge ofthe deceased.

Here, on the facts, the proposal did not reach the defendant until afterthedeceased haddied,no acceptance wasever made, nor wasit communicated and it could neverhad come to the knowledge of the deceased because the deceased had died earlier. So, according tothe provisions ofs. Section 4 of the Contracts Act and illustration under the section does not state anything for the situation when the acceptance is communicated by [J2CLJ Free consent is further defined in Section 14 as consent which is not caused by coercion, undue influence, fraud, misrepresentation or mistake.

When consent to an agreement is caused by coercion, fraud, or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused Section 19 1. Part 5 makes provisions on performance of contracts. Section 38 1 of the Contracts Act provides that the parties to a contract must either perform or offer to perform their respective promises, unless such performance has been dispensed with by law.

Part 6 deals with certain relations resembling those created by contract. Important Notice: Legislation from this website is not a copy of the Gazette printed by the Government Printer, Percetakan Nasional Malaysia Berhad, for the purposes of section 61 of the Interpretation Acts and [Act ] and does not constitute prima facie evidence of the contents of the Gazette by virtue of the section. Title: Number:. Short title 2. Communication, acceptance and revocation of proposals 4.

Communication, when complete 5. Revocation of proposals and acceptances 6. Revocation how made 7. Acceptance must be absolute 8. Acceptance by performing conditions, or receiving consideration 9. What agreements are contracts Who are competent to contract What is a sound mind for the purposes of contracting Voidability of agreements without free consent Power to set aside contract induced by undue influence Agreement void where both parties are under mistake as to matter of fact Effect of mistake as to law Contract caused by mistake of one party as to matter of fact What considerations and objects are lawful, and what not Void Agreements Agreements void if considerations and objects unlawful in part Agreement without consideration, void, unless- Agreement in restraint of marriage void Agreement in restraint of trade void Exception 1-Saving of agreement not to carry on business of which goodwill is sold; Exception 2-of agreement between partners prior to dissolution; Exception 3-or during continuance of partnership Agreements in restraint of legal proceedings void Exception 1—Saving of contract to refer to arbitration dispute that may arise Exception 2—Saving of contract to refer questions that have already arisen Agreements void for uncertainty Enforcement of contracts contingent on an event happening Enforcement of contracts contingent on an event not happening When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person Obligation of parties to contracts Effect of refusal to accept offer of performance Effect of refusal of party to perform promise wholly By whom Contracts must be Performed Person by whom promise is to be performed Effect of accepting performance from third person Devolution of joint liabilities Effect of release of one joint promisor Devolution of joint rights Time and Place for Performance Time for performance of promise where no application is to be made and no time is specified Time and place for performance of promise where time is specified and no application to be made Application for performance on certain day to be at proper time and place Place for performance of promise where no application to be made and no place fixed Performance in manner or at time prescribed or sanctioned by promisee Performance of Reciprocal Promises Promisor not bound to perform unless reciprocal promisee ready and willing to perform Order of performance of reciprocal promises Liability of party preventing event on which contract is to take effect Effect of default as to that promise which should be first performed, in contract consisting of reciprocal promises Reciprocal promise to do things legal, and also other things illegal Alternative promise, one branch being illegal Appropriation of Payments Application of payment where debt to be discharged is indicated Application of payment where debt to be discharged is not indicated Application of payment where neither party appropriates Contracts which need not be Performed Effect of novation, rescission and alteration of contract Promisee may dispense with or remit performance of promise Consequences of rescission of voidable contract Obligation of person who has received advantage under void agreement, or contract that becomes void Mode of communicating or revoking rescission of voidable contract Claim for necessaries supplied to person incapable of contracting, or on his account