This work provides an unrivalled and unparalleled examination and commentary on the law of contract, one of the most important branches of the law of obligations in Malaysia. It is universally recognized as the leading textbook on the subject, and the first port of call for students, practitioners and judges alike in all matters relating to contract. 

Fifth Edition Highlights

a) Government Contracts: an important Federal Court decision on whether written contracts not executed in the manner provided under the Government Contracts Act 1949 are valid.

b) Contracting out of Contracts Act 1950: Federal Court decision on whether parties to contract may contract out of the Contracts Act 1950.

c) Formation: Decisions of Federal Court dealing with intention to create legal relations; duty of parties engaged in negotiations to enter into commercial contract to conduct themselves on the expectation of honesty, good faith and fair dealing; absolute and unqualified acceptance.

d) Electronic contracts: Formation of online contracts; Decision of Federal Court on message from a short messaging service amounting to document containing a valid electronic signature within the meaning of sections 5, 6, 8 and 9 of the Electronic Commerce Act 2006.

e) Contingent contracts: Decision of Federal Court on law on contingent contracts applying to contracts containing conditions precedent which are suspended; affirmation of a suspended contract by one of the parties in the aftermath of the suspension revives the contract for purposes of specific performance.

f) Freedom of contract and sanctity of contract: The impact of Covid-19 Pandemic and Temporary Measures For Reducing The Impact Of Coronavirus Disease 2019 (Covid-19) Act 2020.

g) Terms of contract: Decisions of Federal Court on novation, doctrine of fundamental breach and the doctrine of fundamental terms, implied terms, performance of contractual obligations where time for performance not stipulated, implied term of termination on reasonable notice, good faith, extrinsic evidence, scope of entire agreement clauses, exclusion clauses.

h) Fraud: Federal Court decision restating the law relating to the burden and standard of proof for fraud in Malaysia.

i) Voidable Contracts: Decisions of Federal Court on innocent misrepresentation, rescission and mutual restitution.

j) Mistake: Principles governing rectification under sections 30 to 32 of the Specific Relief Act 1950.

k) Illegality: Decisions of the Federal Court on approach to be adopted by the courts when illegality is alleged under section 24 of the Contracts Act, adoption of “range of considerations” test for determining illegality laid down by UK Supreme Court in Patel v Mirza, scope of public policy under section 24(e) of Contracts Act, illegal booking fees under Housing Development Regulations; restitution under section 66 of Contracts Act where both parties aware of illegality, contracts void due to bribery and corruption.

l) Restraint of legal proceedings: Decisions of Federal Court on time limit to sue under guarantee, exclusion clause in loan agreement excluding all liability for loss and damage.

m) Frustration and force majeure: Force Majeure clauses and impact of the Temporary Measures For Reducing The Impact Of Coronavirus Disease 2019 (Covid-19) Act 2020.

n) Discharge by Performance: Decisions of Federal Court on time being of the essence, time for performance under sections 47 and 56 of the Contracts Act.

o) Discharge by breach: Decisions of the Federal Court on providing of reasons in notice of termination, strict construction of termination clauses, automatic termination clauses, test for termination for breach remaining that of repudiatory breach or fundamental breach, anticipatory breach.

p) Damages: Controversial decision of the Federal Court on the interpretation of section 75 of the Contracts Act 1950, deposits and liquidated damages.

q) Interpretation of contracts: Decisions of the Federal Court dealing with modern approach towards interpretation of contracts.

Table of Contents

Volume 1

 Chapter 1: The Law of Contract in Malaysia

 Chapter 2: The Process of an Agreement

 Chapter 3: Consideration and Privity of Contract

 Chapter 4: Terms of a Contract

 Chapter 5: Voidable Contracts

 Chapter 6: Mistake

 Chapter 7: Minors’ Capacity to Contract

 Chapter 8: Void and Illegal Contracts

 Volume 2

 Chapter 9: Restraint of Trade, Legal Proceedings and Marriage

 Chapter 10: Discharge by Frustration

 Chapter 11: Discharge by Performance and Agreement

 Chapter 12: Discharge by Breach

 Chapter 13: Damages

 Chapter 14: Specific Performance and Injunction

 Chapter 15: Estoppel

 Chapter 16: Interpretation of Contracts