( UNIVERSITY TERBUKA MALAYSIA ( U N I T E M ) )

BACHELOR OF BUSINESS ADMINISTRATION ( B.B.A)( H O N S)

PART TIME COURSE / SEPARUH MASA SAHAJO
( PELAN PEMULIHAN NEGARA FASA 1 )
SEMESTER OF MAY 2021
FIRST SEMESTER OF THE YEAR 2021
( BUSINESS LAW 2021 MAY)
BISMILLA HIRRAHMAN NIRROHIM
JUN 2021 / PKP/ MCO 3.0/PNN

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MEANING OF CONTRACTS . .
Contract exists when you and another person agree on something and that agreement is both
legally binding and enforceable. A rental contract is signed by you and your potential landlord
when you rent an apartment or Condominium .In this context, the word can also be used as a
verb that means "to hire." Wouldn't it be nice to hire someone to clean your room for you?
ELEMENTS OF VALID CONTRACTS IN MALAYSIA

In our most beloved Nation Malaysia , our contract law is essentially governed and
enforced by the Contracts Act of 1950. A certain claim to performance requires the existence of
a valid contract between the parties to the dispute. The terms of the contract must be final and
certain. This is important because equity is not expected to enforce an invalid contract or a
contract so vaguely worded that equity cannot determine exactly what each party has to perform.
Terms interpreted by the court as the court may mistakenly order what the parties never intended
or considered. According to my understanding of contract law, the performance of the contract
must be precise and precise and correspond to the commitments of the parties. Section 38 (1) of
the Contracts Act 1950 states that contracting parties must fulfill or offer to fulfill five promises
unless such fulfillment has been waived by law. In order to enter into a legally binding
contractual agreement, the following six elements must be met. Malaysia, our contract law is
essentially governed and enforced by the Contracts Act of 1950. A certain claim to performance
requires the existence of a valid contract between the parties to the dispute. The terms of the
contract must be final and incertinity.

The general presumption of the law is that each one folks have a capability to contract.
someone who is attempting to avoid a contract would need to plead his or her lack of capacity to
contract against the party who is trying to enforce the contract. Section eleven of the Contracts
Act 1950 provides that “Every person is competent to contract, who is of the age of majority in
step with the law to that he's subject, and who is of sound mind, and isn't disqualified from
catching by any law to which he is subject”. It means the one that enters into the contract should
have the complete capability in terms ancient and mind. The age of majority in Asian country
one 8|is eighteen} years recent. Any 1 who wish to urge concerned in contracts must be older
than eighteen years old after they enter into the contract. Section twelve (1) of the Contract Act
1950 provides that
“A person is alleged to be of sound mind for the aim of creating a contract if, at the time
once he makes it, he's capable of understanding it and of forming a rational judgment as to its
result upon his interests.” As a result, the agreement is valid. A contract isn't enforceable if its
object is taken into account to be banned or against public policy. In several jurisdictions
contracts predicated upon lotteries, dog races, horse races, or alternative varieties of gambling
would be considered illegal contracts. once getting into agreement, the parties should be free
consent to contract. The free consent as provided in Section 10(1) “All agreements are contracts
if they're created by the free consent of parties competent to contract…” beneath Section 14,
consent must be free and not caused by any force . . .
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VOIDABLE FACTORS / ELEMENTS OF A VALID CONTRACTS IN MALAYSIA .

i. No Offer. Every contract begins off with an offer or a proposition. A individual

makes a proposition when he means his readiness to be bound by his guarantee, and
serious to get the other person’s consent to that guarantee. The offer made must be
legitimate, precious stone clear and in certain terms, in that the subject matter of the
contract must not be as well unclear to be upheld. Amid the construct up to an
assention, parties regularly go through a period of arrangement, which varies from an
offer, as transactions are not certain and clears out room for encourage discussions .
Therefore no offer made will Automatically made a Contract Void or cancel with no
notice. There is no point of a Contract or Agreement if there is no offer , offer in such
of open tender and many.

ii. No Acceptance

After an offer is made, it is the other person’s turn to acknowledge the offer. When a individual
to whom an offer is made implies his consent thereto, the offer is said to be acknowledged. Some
time recently the acknowledgment gets to be substantial and enforceable, it must compare to the
offer, consenting completely and genuinely to all the terms set out within the offer. At this point,
the tolerating party ought to not have faltering contemplations and instep, should be proceed.
Meaning its agreed by both the parties not 1 sided like 1 sided love or affection.

iii. No Capacity.

Not everyone is able to rent. A contract is only concluded if the parties are of legal age, 18
in Malaysia and are sane. The law aims to protect the interests of minors so that they are not
incapable of contracting. Likewise, people in a mental state, such as people with intellectual
disabilities and people who are drunk, are not able to contract because they do not understand the
terms of the contract and the form of a rational judgment about its effect, hence the need to
protect their interests.

Contracts can no longer if exist at different levels of complexity and facilitate order and
system interaction in many transactions. By fulfilling the required elements, almost anyone can
get a valid contract. The best thing to do is to ensure that your free consent is retained if not it
will void or cancel ,an important part of your contract to reflect your true intent and ensure its
validity. However, it is not uncommon for unscrupulous parties, such as large corporations, to
take advantage of their contractors through coercion, deception, or even fraud , which goes
against the purpose of a contract, which is to protect the interests of the contract. These contracts
are open to legal action, but you should always fully understand the content of your contract
before signing it because if there is no capacity found it will void or no longer valid since it does
not fulfill its full capacity .

iv.Expectation to make legitimate relations .

In business contracts, parties as a rule expect to turn out to be lawfully limited by a
legitimate relationship. However, a few group go into an agreement without acknowledging thus,
and that is normally found in friendly and homegrown connections, which means loved ones. We
frequently have game plans with individuals near us without anticipating any legitimate
ramifications. The best approach to decide if there is a goal to make legitimate relations is by
taking a gander at what the gatherings included seem to have conceded to, instead of what the
gatherings say they have concurred. On the off chance that all that A and B had was an
easygoing discussion, it is hard to deduce that they proposed to make a lawful relationship,
however the expectation is more self-evident or evidence on the off chance that they have agreed
and are fit to be bound quickly ─ much more so if there was a conventional record to help it
failure to do so will cause it auto fall or void of a Contracts according to Malaysian Rule of Law.
You may say that in other countries its not but in Malaysia it is because in every countries the
Law or Rule of Law differs Varies.

AMENMENTS THAT MALAYSIAN LAW NEEDS ACCORDING TO MY OPINION

PERTAINING TO THE ABOVE STATEMENTS.

Amenments or to make a change to our Malaysian Constitution or Law is not that easy as
we think because In buying in to the aphorism that a constitution which can't twist will
eventually be broken, one should likewise know about a constitution which is amazingly simple
to alter for it might end up being more awful than having no constitution by any means." THE
Constitution has been known as a country's "report of predetermination" and "public contract" –
terms that mirror the significance of the preeminent rule that everyone must follow. Like a
legitimately authoritative agreement, any alteration expects crucial importance and consequently,
ought not be effectively done. All things considered, evolving political, monetary and social
conditions have made the need to correct the first agreement – some for legitimate reasons, while
others are more questionable. For instance, when Sabah ,Sarawak and Singapore joined Malaya
to form Malaysia in 1963, the Malaysia Act was passed in Parliament to revise the Constitution
to accommodate the name change and the consideration of the three new states.

Contracts no longer exist with varying degrees of complexity and make the ordering of many
transactions and interaction with the system easier. By filling in the required elements, almost
anyone can obtain a valid contract. The best way is to ensure that your free consent is maintained
unless you withdraw or withdraw it, which is an important part of your contract to reflect your
true wishes and ensure its validity.
 However, it is not uncommon for large companies and other fraudulent parties to use
their contractors to achieve the purpose of the contract by coercion, deception or even fraud in
order to protect the interests of the contract. These contracts are legally questionable, but you
must always fully understand the contents of the contract before signing, because if you do not
find the capacity, it will be terminated or expired due to failure to fully perform its duties.
Therefore Capacity must be made a must by Amending our law which is at present not that
strong. Apart from that , After an offer is made, it is the other person's turn to accept the offer. If
a person to whom an offer is made gives their consent, the offer is considered accepted. At some
point recently, the recognition becomes substantive and enforceable, it must be compared to the
offer, with all the conditions set out in the offer fully and sincerely agreeing. At this point, the
tolerant part shouldn't have wavering considerations and the instep should continue.

No Offer Every contract begins with an offer . One person makes an offer when they want to
declare that they are bound by their guarantee and are serious about getting the other person's
consent to that guarantee. Legitimate , clear gem and under certain conditions, in the sense that
the subject of the contract does not have to be so unclear in order to maintain. Average
construction until approval, the parties regularly go through an agreement period that deviates
from an offer, as transactions are not secure and leave room for discussion. In order to avoid
this , making of offer must be given exceptional for offer because many contracts becomes
invalid because no offer made in Malaysia according to our Malaysian Law and Federal
Constitution of Malaysia which is above the The Yang Dipertuan Agong or the King of
Malaysia.

CONCLUSION
In our most cherished Country Malaysia , our agreement law is basically
administered and authorized by the Agreements Demonstration of 1950. A specific
case to execution requires the presence of a legitimate agreement between the
gatherings to the question. The conditions of the agreement should be conclusive and
certain. This is significant on the grounds that value isn't required to implement an
invalid agreement or an agreement so dubiously phrased that value can't decide
precisely what each gathering needs to perform. Terms deciphered by the court as the
court may erroneously arrange what the gatherings never expected or considered. As
per my comprehension of agreement law, the presentation of the agreement should be
exact and exact and compare to the responsibilities of the gatherings. Segment 38 (1)
of the Agreements Act 1950 states that contracting parties should satisfy or offer to
satisfy five guarantees except if such satisfaction has been postponed by law. To go
into a legitimately restricting legally binding arrangement, the accompanying six
components should be met. Malaysia, our agreement law is basically administered
and upheld by the Agreements Demonstration of 1950. A specific case to execution
requires the presence of a substantial agreement between the gatherings to the
question. The particulars of the agreement should be conclusive and incertinity.
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REFERENCES FOR THIS BUSINESS LAW TASK OR ASSESMENT MAY 2021 SEM .
1. https://www.lawteacher.net/free-law-essays/contract-law/malaysian-contract-law-
essay.php
2. https://ms.wikipedia.org/wiki/Pengguna:Ciri-
_ciri_Tradisional_Perlembagaan_Persekutuan
3.
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REFERENCES FOR THIS BUSINESS LAW TASK OR ASSESMENT MAY 2021 SEM .
4. https://www.lawteacher.net/free-law-essays/contract-law/malaysian-contract-law-
essay.php
5. https://ms.wikipedia.org/wiki/Pengguna:Ciri-
_ciri_Tradisional_Perlembagaan_Persekutuan
6.
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