Modernising Malaysia’s Contracts Act: A blueprint for economic growth and legal certainty

CONTRACTS are an essential part of daily life, governing countless transactions and interactions that many people do not even realise fall under the purview of contract law. From buying groceries to taking up a subscription service, from hiring a contractor to providing professional services, every transaction is built upon contractual principles.

A contract, at its core, is a legally enforceable agreement between two or more parties, setting out their respective rights and obligations. The fundamental elements of a contract include an offer, acceptance, and consideration. An offer is a clear expression of willingness to enter into a contract on certain terms, while acceptance signifies agreement to those terms. Consideration, on the other hand, refers to something of value exchanged between the parties, ensuring that the contract is not merely a gratuitous promise but a binding legal agreement.