Topic to be covered
1. Contract law
2. Malaysian legal system
3. Employment law
4. Negligence
5. Agency law
6. Partnership
7. Company law
Exam paper format (2 hours)
Section A- 45 question total 70 marks (45 min)
Section B- Case Study (5 Question answer all) 30 marks (1h 15 min)
1
,THE LAW OF CONTRACT 合同法
The principal statute/legislation 原则性法规 in Malaysia governing the Law of Contract is
the Contracts Act 1950
Parliament 国会 is the main law making body
a. DEFINITION OF A CONTRACT
A contract in the legal sense refers to an agreement 协议 between two or more parties,
which is legally binding 具有法律约束力 in the eyes of the law, with the consequence that
if one party breaches, the other would have a right of action in a court of law for breach.
b. ELEMENTS ESSENTIAL FOR A VALID CONTRACT 有效合同
(Such a contract satisfies the requirements of the law and therefore if one of the
parties breaches the terms, it is enforceable in a court of law)
i. OFFER/PROPOSAL - It is an expression of willingness to enter into a contract 双方
愿意进入一个合约 provided the other party agrees to the terms. The person making
the offer is known as OFFEROR/PROPOSER (under section 2a)
ii. ACCEPTANCE – It is an unconditional consent 无条件同意 to all the terms of the
offer. The person accepting is called the OFFEREE / ACCEPTOR – (under section
2b: when a person to whom the proposal is made signifies his accent thereto)
iii. INTENTION 有 意 图 – The parties must have the intention to create a legal
relationship. In the case of commercial transactions/business transactions, the
presumption is that there is an intention to be binded 结合. But if it is a domestic
transaction (eg husband and wife), the presumption is that there is no intention to
be binded.
iv. CONSIDERATION 对 价 – Parties must give each other something of value.
Consideration must be sufficient 充足 but does not have to be adequate 足够. ( In a
sale of a car, seller gives the car which is valuable consideration provided and
2
, the payment made by the buyer for the car is the consideration provided by
him)
v. CAPACITY 合同能力 – 1) parties must have contractual capacity (above the age of
18) under 18 called minor. We will be in trouble when enter into a contract with
minor, because we cannot take him to court ( contract is void )
2) Parties must be of sound mind ( not mentally fine)
3) should not be under the influence of drugs or alcohol at the time of the contract.
vi. LEGALITY - The subject matter of the contract must be legal in the eyes of the law.
(A, B and C enter into an agreement for the division among them of gains acquired,
or to be acquired by them by fraud. The agreement is void as its abject is unlawful. )
vii. FREE CONSENT 自由同意 – Both parties must freely accept the terms and enter
into the contract. The presence of coercion 胁 迫 (threatening) , fraud and
misrepresentation will affect the validity of the contract.
viii. FORM – Simple contracts can entered orally or in writing. However, if the law
requires a particular form for eg sale of land then it has to be done in writing. otherwise,
the contract is not enforceable.
A contract which does not satisfy the relevant tests maybe either
a. Void 无效合同
A void contract has no legal effect. The parties are not bound by it. Eg A contract to rob the bank
is illegal. Hence it is a void contract.
S2(g) – An agreement not enforceable 不可强制执行 by law is a void contract.
b. Voidable contract 可撤销合同，但是合约不成立
Voidable contracts are those contracts which are valid when they are made but which may be
avoided, that is, set aside, by one of the parties. If, however, no steps are taken to avoid the
3
, contract then the contract is considered to be a valid contract. The victim has the power to
cancel the offer.
Factors such as coercion or undue influence are good examples of voidable contracts.
c. An unenforceable contract 无法强制执行的合同
A contract will be deemed to be unenforceable when it is not in the correct form as required by
statutory law. An unenforceable contract is a valid contract but if either party refuses to perform
or complete their part of the performance of the contract, the other party cannot compel 迫使
them to do so.
A contact is usually unenforceable when the required evidence of its terms, for eg written
evidence of a contract relating to land, is not available.
4
1. Contract law
2. Malaysian legal system
3. Employment law
4. Negligence
5. Agency law
6. Partnership
7. Company law
Exam paper format (2 hours)
Section A- 45 question total 70 marks (45 min)
Section B- Case Study (5 Question answer all) 30 marks (1h 15 min)
1
,THE LAW OF CONTRACT 合同法
The principal statute/legislation 原则性法规 in Malaysia governing the Law of Contract is
the Contracts Act 1950
Parliament 国会 is the main law making body
a. DEFINITION OF A CONTRACT
A contract in the legal sense refers to an agreement 协议 between two or more parties,
which is legally binding 具有法律约束力 in the eyes of the law, with the consequence that
if one party breaches, the other would have a right of action in a court of law for breach.
b. ELEMENTS ESSENTIAL FOR A VALID CONTRACT 有效合同
(Such a contract satisfies the requirements of the law and therefore if one of the
parties breaches the terms, it is enforceable in a court of law)
i. OFFER/PROPOSAL - It is an expression of willingness to enter into a contract 双方
愿意进入一个合约 provided the other party agrees to the terms. The person making
the offer is known as OFFEROR/PROPOSER (under section 2a)
ii. ACCEPTANCE – It is an unconditional consent 无条件同意 to all the terms of the
offer. The person accepting is called the OFFEREE / ACCEPTOR – (under section
2b: when a person to whom the proposal is made signifies his accent thereto)
iii. INTENTION 有 意 图 – The parties must have the intention to create a legal
relationship. In the case of commercial transactions/business transactions, the
presumption is that there is an intention to be binded 结合. But if it is a domestic
transaction (eg husband and wife), the presumption is that there is no intention to
be binded.
iv. CONSIDERATION 对 价 – Parties must give each other something of value.
Consideration must be sufficient 充足 but does not have to be adequate 足够. ( In a
sale of a car, seller gives the car which is valuable consideration provided and
2
, the payment made by the buyer for the car is the consideration provided by
him)
v. CAPACITY 合同能力 – 1) parties must have contractual capacity (above the age of
18) under 18 called minor. We will be in trouble when enter into a contract with
minor, because we cannot take him to court ( contract is void )
2) Parties must be of sound mind ( not mentally fine)
3) should not be under the influence of drugs or alcohol at the time of the contract.
vi. LEGALITY - The subject matter of the contract must be legal in the eyes of the law.
(A, B and C enter into an agreement for the division among them of gains acquired,
or to be acquired by them by fraud. The agreement is void as its abject is unlawful. )
vii. FREE CONSENT 自由同意 – Both parties must freely accept the terms and enter
into the contract. The presence of coercion 胁 迫 (threatening) , fraud and
misrepresentation will affect the validity of the contract.
viii. FORM – Simple contracts can entered orally or in writing. However, if the law
requires a particular form for eg sale of land then it has to be done in writing. otherwise,
the contract is not enforceable.
A contract which does not satisfy the relevant tests maybe either
a. Void 无效合同
A void contract has no legal effect. The parties are not bound by it. Eg A contract to rob the bank
is illegal. Hence it is a void contract.
S2(g) – An agreement not enforceable 不可强制执行 by law is a void contract.
b. Voidable contract 可撤销合同，但是合约不成立
Voidable contracts are those contracts which are valid when they are made but which may be
avoided, that is, set aside, by one of the parties. If, however, no steps are taken to avoid the
3
, contract then the contract is considered to be a valid contract. The victim has the power to
cancel the offer.
Factors such as coercion or undue influence are good examples of voidable contracts.
c. An unenforceable contract 无法强制执行的合同
A contract will be deemed to be unenforceable when it is not in the correct form as required by
statutory law. An unenforceable contract is a valid contract but if either party refuses to perform
or complete their part of the performance of the contract, the other party cannot compel 迫使
them to do so.
A contact is usually unenforceable when the required evidence of its terms, for eg written
evidence of a contract relating to land, is not available.
4
