Privity of Contract
- Only persons who are parties to a contract can sue or be sued on the
- A contract cannot be enforced by or against third parties.
Common Law position
- Tweddle v Atkinson
The plaintiff, who was the son of John
Void and Illegal Contracts
Sec. 2(g): an agreement not enforceable by law is said to be void.
Illegal contracts: void or unlawful and will not be enforced by the courts.
Section 24 is the primary source of illegality in Malaysia.
Section 24: The considera
Definition: A remedy is a redress for a wrong.
- To provide an appropriate relief
- To redress a wrong rather than to punish a defendant.
- Definition: Pecuniary compensation obtainable by success in an action
for a wrong, the
Discharge of Contract
Definition: When a contract is brought to an end, dissolved or terminated.
Discharged: Where one or both parties to a contract are freed from their
Discharge by Frustration
Evolution of the doctrine of frustr
Contents of contract
Sec. 2(h): Contracts are agreements enforceable by law.
- In order to enforce a particular contract, the validity of the contract
must be determined.
- Validity is determined through the formation of contract.
Sec. 9: A contract may b
A term in a contract by which a party inserting the term seeks to exclude/limit
all/some of his liability in the event of a breach of contract.
An exemption clause must be incorporated into the contract as a term.
Express terms: Terms specifically agreed upon by the parties
E.g: price, quality, quantity.
Terms which are made to be vital and are written in the contract.
May be agreed upon by word/mouth.
Terms which are valid and enforceable.
Doctrine of Collateral Contract:
- To overcome the injustice that may result from the Parole Evidence
- A device to overcome the parole evidence rule to admit precontractual statements which had not been incorporated into the
Risk of a loss or delayed acceptance and revocation of contract
In order for a contract to be established, it is important that an offer is made and the
acceptance of the offer is communicated to the offeror. According to the postal rule, under the