You can make a contract yourself without needing a lawyer. According to Sections 2 and 10 of the Contracts Act 1950, a contract is valid if it includes an offer, acceptance, consideration, and intention to create legal relations. Section 11 adds that the parties must be competent to contract. As long as these elements are fulfilled, your contract is legally binding.
–Ref: Sections 2, 10, and 11 of the Contracts Act 1950
Generally, signing a contract indicates that you agree to its terms, even if you didn’t read it. However, under Sections 14, 15, 17, and 18 of the Contracts Act 1950, a contract may be voidable if it was entered into due to coercion, undue influence, fraud, misrepresentation, or mistake. If any of these elements are proven, you may have the right to cancel the contract.
–Ref: Sections 14, 15, 17 & 18
Yes, if the contract is valid and one party refuses to fulfill their obligations, you can take legal action. Section 40 of the Act states that when one party refuses to perform their promise, the other party may void the contract. Section 55 allows for compensation in cases of delay, and Section 73 enables a party to claim damages for any loss caused by a breach of contract.
–Ref: Sections 40, 55, 73
No, any change to a contract must be mutually agreed upon. Section 13 of the Contracts Act 1950 defines consent as when two or more persons agree upon the same thing in the same sense. Therefore, unilateral changes without your agreement are not valid or enforceable.
–Ref: Section 13 – Consent must be mutual
Yes, a handwritten contract is valid as long as it fulfills the essential elements of a contract. Section 2 defines a contract as an agreement enforceable by law, and Section 10 states that all agreements made by competent parties with free consent, lawful consideration, and lawful object are contracts.
–Ref: Sections 2 & 10
No, a minor (a person under 18 years old) is not legally competent to contract under Section 11 of the Act, unless the contract is for necessities or is for the minor’s benefit. A contract made by a minor is generally void.
–Ref: Sections 10, 11
If both parties to a contract are mistaken about a fundamental fact, the contract may be void. Section 21 of the Act explains that an agreement is void when both parties are under a mistake as to a matter of fact essential to the agreement.
–Ref: Section 21
Yes, oral agreements are legally binding if all essential elements of a contract are present. Section 10 does not require a contract to be in writing for it to be enforceable, though written contracts are easier to prove in court.
–Ref: Section 10
Yes, if the messages exchanged via WhatsApp or email contain offer, acceptance, and intention to create legal relations, they can form a valid contract under Section 10 of the Act. This means you may be able to enforce the agreement in court.
–Ref: Section 10
For a contract to be legally binding under Malaysian law, it must contain the essential elements: offer, acceptance, consideration, intention to create legal relations, and the legal capacity of the parties involved. Section 10 of the Contracts Act 1950 states that all agreements made by competent parties with lawful consideration and lawful object, and not expressly declared void, are enforceable by law.
-Ref: Section 10
Employment & Job-Related Contracts
Failure to pay salary on time is considered a breach of contract. Under Section 40 of the Contracts Act 1950, when a party refuses to perform their promise, the other party may rescind the contract and seek compensation. You may also file a complaint with the Labour Department for enforcement.
–Ref: Section 40 – Breach of contract
Yes, you can take legal action if your dismissal violates the terms of your employment contract or labour law. Section 57 of the Contracts Act 1950 allows an aggrieved party to claim compensation if a contract is breached and no time for performance was fixed. This includes termination without the required notice.
–Ref: Section 57 – Compensation for breach where no time is fixed
No, your salary cannot be reduced unilaterally. Section 13 of the Contracts Act 1950 states that consent must be mutual, meaning any changes to the contract, including salary adjustments, must be agreed upon by both parties.
–Ref: Section 13 – Consent must be mutual
In general, non-compete clauses are void under Section 28 of the Contracts Act 1950, which states that any agreement in restraint of trade is void. However, there are limited exceptions, such as when the clause is necessary to protect legitimate business interests and is reasonable in scope.
–Ref: Section 28 – Agreement in restraint of trade is void
A company can only terminate your contract without compensation if the termination is lawful and justified under the terms of the contract or if there has been a breach. Section 73 of the Contracts Act 1950 provides that compensation must be paid for any loss or damage caused by a breach of contract.
–Ref: Section 73 – Compensation for loss/damage from breach
Online Purchases & Consumer Protection
Yes, you may be entitled to a refund. Selling fake goods may constitute fraud or misrepresentation, both of which can render a contract voidable. Sections 17 and 18 of the Contracts Act 1950 define fraud and misrepresentation and provide that contracts entered into under such circumstances may be set aside.
–Ref: Sections 17 & 18 – Fraud and misrepresentation
If you canceled your order with a valid reason—such as misrepresentation, delay in delivery, or breach of terms—you may be entitled to a refund. Under Section 65 of the Contracts Act 1950, when an agreement is discovered to be void or becomes void, any person who received a benefit under the agreement is bound to restore it.
–Ref: Section 65 – Obligation to restore benefit on void agreement
No, it is not legal. Refusing a return for a defective product may violate your consumer rights. While the Contracts Act 1950 deals with general contractual obligations, the Consumer Protection Act 1999 specifically addresses the rights of consumers and includes implied warranties that protect against defective goods.
–Consumer Protection Act 1999
No, charging hidden fees that were not disclosed in the contract may be considered unfair and unenforceable. Section 12 of the Contracts Act 1950 requires that consideration must be lawful and clear; hidden charges can amount to misrepresentation or breach of transparency.
–Ref: Section 12 – Consideration must be lawful
Before signing a loan agreement, you should carefully review the repayment terms, interest rate, penalties for late payment, and any dispute resolution clauses. Most importantly, make sure that your consent is freely given and not obtained through pressure. Sections 10 and 13 of the Contracts Act 1950 highlight the importance of lawful object, mutual consent, and free will in making a valid contract.
–Ref: Sections 10 & 13
Yes, you can take legal action or file a complaint if your employer refuses to provide a written contract. Although oral agreements can be valid under Section 10 of the Contracts Act 1950, having a written contract is essential for clarity and is required under certain provisions of employment law to protect both parties’ rights.
–Ref: Section 10
A verbal promise for a raise may be enforceable, but only if there is clear evidence of the promise and if some form of consideration (such as additional work or responsibilities) was exchanged. According to Section 2(d) of the Contracts Act 1950, a promise becomes binding when the promisee has done or abstained from doing something in return. However, without written proof, it may be difficult to prove and enforce.
–Ref: Section 2(d)
Yes, you may still claim overtime if your position falls under the scope of the Employment Act 1955. This Act provides minimum standards for working hours, and if you work beyond those limits, you’re entitled to overtime pay—even if your contract does not mention it.
–Ref: Employment Act 1955 – Not under Contracts Act
No, a fixed-term employment contract does not automatically renew unless there is a clause in the contract that provides for renewal or the employer’s conduct clearly shows an intention to continue the employment. Section 10 of the Contracts Act 1950 applies, as the continuation would require a new agreement with mutual consent.
–Ref: Section 10
Housing & Rental Agreements
No, your landlord cannot raise your rent arbitrarily. Rent increases are only legal if they are permitted under the tenancy agreement or if you have consented to the new amount. Section 13 of the Contracts Act 1950 states that valid contracts require mutual consent.
–Ref: Section 13 – Consent must be mutual
No, a landlord cannot evict you without proper notice unless the tenancy agreement specifically allows for immediate termination or if you have breached the terms of the contract. Section 40 of the Contracts Act 1950 addresses the consequences when one party refuses to perform their obligation.
–Ref: Section 40 – Breach of contract
If you end your tenancy before the agreed term without a valid termination clause, you may be required to compensate the landlord for the loss. Under Section 74 of the Contracts Act 1950, when a contract is broken, the aggrieved party is entitled to compensation for any loss or damage caused.
–Ref: Section 74 – Compensation for breach of contract
Yes, you are entitled to get your security deposit back unless the landlord can prove that there is legitimate damage to the property or there is unpaid rent. Under Section 73 of the Contracts Act 1950, a party who has suffered loss due to a breach is entitled to compensation, and vice versa, a party who wrongfully retains money may be legally compelled to return it.
–Ref: Section 73 – Compensation for loss/damage from breach
Yes, the law does recognize verbal contracts. According to Section 10 of the Contracts Act 1950, an agreement is valid as long as it fulfills the legal elements such as offer, acceptance, and consideration. However, verbal contracts can be harder to prove in court.
–Ref: Section 10
Loan & Debt Issues
Yes, you can take legal action if you can prove that there was a loan agreement and that the borrower failed to repay it. Section 73 of the Contracts Act 1950 allows for compensation in cases where one party suffers loss due to another’s failure to fulfill a contractual obligation.
–Ref: Section 73 – Right to recover loss from breach
No, banks cannot unilaterally change interest rates without notifying and obtaining the customer’s consent. Section 13 of the Contracts Act 1950 emphasizes that all parties must freely agree to the terms for them to be binding.
–Ref: Section 13 – Consent must be mutual
No, harassment of any kind is illegal, even in debt recovery. While this issue falls more under criminal law and consumer protection, the Penal Code and Consumer Protection Act 1999 prohibit harassment and coercion by debt collectors.
–Ref: Penal Code & Consumer Protection Act 1999
Yes, if you were misled through misrepresentation, fraud, or undue influence, you may have grounds to cancel the agreement. Sections 14, 17, and 18 of the Contracts Act 1950 deal with free consent, fraud, and misrepresentation, and allow contracts formed under such conditions to be voided.
–Ref: Sections 14, 17 & 18 – Misrepresentation, fraud & lack of free consent
No, a person cannot be held liable for a loan without proof of agreement or consent. Section 10 of the Contracts Act 1950 states that a contract must be formed with the mutual consent of the parties and cannot be enforced otherwise.
–Ref: Section 10 – Valid contract requires consent
You should report the matter to the police immediately. Loan shark activities (also known as “Ah Long”) are illegal, and making threats is a criminal offence under the Penal Code. These are not legitimate contracts and are not protected under the Contracts Act.
–Ref: Not under Contracts Act – Penal Code applies
No, it is not legal. A guarantee must be in writing and signed by the guarantor, as required under Section 27(b) of the Contracts Act 1950. Without a written and signed agreement, the guarantee is not enforceable.
–Ref: Section 27(b) – Guarantee must be in writing
Yes, failure to repay a loan can lead to your name being listed in credit reporting systems such as CCRIS or CTOS, which can negatively affect your credit score and ability to obtain future loans. Although this is not directly governed by the Contracts Act, it is a standard practice in banking and finance.
–Ref: Not directly under Contracts Act – Involves credit reporting systems
If you’re being wrongly sued, you can defend yourself by showing that there was no valid contract, that you never consented, or that the debt has already been paid. Sections 10 and 73 of the Contracts Act 1950 support your right to defend based on the absence of a valid agreement or the fulfilment of obligations.
–Ref: Sections 10 & 73 – Valid contract and right to recover only with proof
Online Purchases & Consumer Protection
Yes, you can take both criminal and civil action. You should report the scam to the police and relevant agencies such as the Ministry of Domestic Trade and Consumer Affairs (KPDN). Under Section 17 of the Contracts Act 1950, fraud renders a contract voidable, and you may also sue to recover losses.
–Ref: Section 17 – Fraud makes contract voidable
You may file a lawsuit for breach of contract and claim damages under Section 73 of the Contracts Act 1950. If you can prove that a valid agreement existed and the seller failed to perform, you are entitled to compensation.
–Ref: Section 73 – Right to claim compensation for breach
Online buyers in Malaysia are protected under the Consumer Protection Act 1999 (CPA 1999), which applies to both online and offline transactions. This law ensures that consumers are treated fairly and protects against unfair trade practices, misleading advertisements, and defective goods.
–Ref: Consumer Protection Act 1999 – Not under Contracts Act
Under the Consumer Protection Act 1999, you generally have up to 2 years from the date of the transaction to file a complaint about a faulty product. After this period, your right to seek redress may be limited.
–Ref: CPA 1999 – 2-year limitation period
Business & Partnership Agreements
If there’s no written contract, the business relationship may be treated as a verbal partnership. In case of a dispute, the court will look at each partner’s conduct, financial contributions, and decision-making role to determine the nature of the partnership. Section 10 of the Contracts Act 1950 confirms that verbal agreements can still be valid if all required elements are present.
–Ref: Section 10 – Valid contract includes oral agreements
No, unless the partnership agreement specifically allows for it. According to Section 13 of the Contracts Act 1950, consent must be mutual for any changes or decisions affecting the rights of partners, including removal.
–Ref: Section 13 – Consent must be mutual
You can sue the supplier for breach of contract and claim damages for any losses you suffered due to non-delivery. Under Section 73 of the Contracts Act 1950, a party who suffers from a breach is entitled to compensation for the loss or damage caused.
–Ref: Section 73 – Compensation for breach of contract
You can only break a franchise agreement if there is a termination clause in the contract or if you have a valid legal reason, such as misrepresentation or undue influence. Under Sections 57 and 58 of the Contracts Act 1950, if the terms are breached or performance becomes impossible, the contract may be terminated. Section 65 allows recovery of any benefits if the agreement is void.
–Ref: Sections 57, 58 & 65 – Termination, impossibility, and restitution
To protect yourself, you should always read the contract terms carefully, avoid signing under pressure, and seek legal advice if needed. Sections 13, 14, and 16 of the Contracts Act 1950 stress that consent must be mutual, free from coercion, and not influenced by undue pressure or threats.
–Ref: Sections 13, 14 & 16 – Mutual and free consent required
You can dissolve a partnership by following the process outlined in your Partnership Agreement. If none exists or if needed, you may apply for dissolution under the Partnership Act 1961. Although not governed by the Contracts Act, the agreement to form the partnership must meet the legal requirements under Section 10.
–Ref: Partnership Act 1961 & Section 10 – Valid contract principles
Yes, verbal agreements can be enforced if all essential elements of a contract are present and can be proven. These elements include offer, acceptance, consideration, intention to create legal relations, legal capacity, free consent, and a lawful object as stated in Section 10 of the Contracts Act 1950.
–Ref: Section 10 – Valid contracts include oral agreements with required elements
You can take legal action against your partner for breaching their fiduciary duty. You may seek an injunction to stop the misuse or claim compensation for any losses under Section 73 of the Contracts Act 1950, which allows recovery for breach of obligation.
–Ref: Section 73 – Compensation for losses caused by breach
It’s not legally required to hire a lawyer, but it is strongly recommended to avoid vague or unfair terms. A shareholder agreement must still meet all contract requirements such as mutual consent and free will under Sections 10 and 14 of the Contracts Act 1950.
–Ref: Sections 10 & 14 – Valid contracts and free consent