A contract is a law that governs the dealings of an agreement.

The law

contracts in Malaysia are essentially governed and enforced by the Contracts Act 1950 (AK

1950). An agreement is an agreement between two or more parties regarding something.

We need to understand that the terms of the contract are more specific while the terms of the
agreement

is more common. A valid and legally enforceable contract will only

formed when it contains all the elements such as captivity, acceptance, return, intention,
willingness,

capabilities and provisions. Only agreements that have the characteristics of a contract have

legal implications. Mariam Darus Badrulzaman explained that a contract is an Act

law that gives rise to an alliance, that is, a legal relationship that occurs between two people or

more, located in the field of wealth to which one party is entitled to performance and

the other party must meet the achievement (Mariam Darus Badrulzaman; 1980; 3). Wirjono
Prodjodikoro,

according to him the Agreement is a legal relationship regarding property between two parties

in which a party promises to do something or not to do something,

while the other party has the right to claim the contract (R. Wirjono Prodjodikoro 1991; 1). Herlien

Budiono explains that a contract or agreement is a legal act that gives rise to,

alter, remove a right, or create a legal relationship and thereby,

a contract or agreement gives rise to legal consequences that are the intent of the parties. If a

legal acts are contracts or agreements, people who take legal action

called parties (Herlien Budiono 2009; 67-72). Most laws in Malaysia

including contract law is influenced by English Common-Law. This can't be

avoided because Malaysia had previously been colonized in Malaya and Borneo before

the independence of Malaya and the existence of Malaysia. Most English laws are in

bring for commercial or trade purposes for the convenience of British merchants who

traded in Malaya at that time. One of the earliest to be brought in and used

is the law of their contract.