Contract Law

Contract-Law-Mind-Map
INTRODUCTION
An agreement enforceable by law
An agreement which is legally binding
between the parties
In Malaysia, the governing legislation
is CONTRACT ACT 1950.
CREATE LEGAL RELATION
The parties must have intended their
agreement to have legal consequences.
The law will not concern itself with
purely domestic or social agreements.
CERTAINTY
The terms and conditions must be
clear in meaning. When the terms are
vague it is difficult for the courts to
construe what in actual fact was
agreed by the parties and what are
the obligations and duties arising
from such terms.
LEGAL CAPACITY
Parties entering contract must
competent/ have legal capacity to
contract.
Section 11 of Contracts Act 1950:
CONSIDERATION
Both parties must have provided
consideration, ie, each side must
promise to give or do something for
the other.
ACCEPTANCE
When the party accept the offer
from offeror
the acceptance can be make in word
(express) or by other than word
(implied)
A person is competent to a contract
is
Of the age of majority according to
law
Of sound mind
Not disqualified from contracting by
any law
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