What is misrepresentation Misrepresentation is a false/ untrue/ misleading pre-contractual statement of fact made by one party (party A) that induces another party (party B) to enter into a contractual relationship with A, which usually results in B suffering loss. How many types of misrepresentation are there? There are three types of misrepresentation in Malaysia.…
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If you read enough contractual agreements, you will occasionally stumble upon a clause in a contractual agreement that states that a party is restricted from acting in a certain manner for a certain period and/ or within certain local limits. Generally, such a clause is called a “restraint of trade clause”. More of it below. …
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What are the requirements for a contractual agreement to be valid? In today’s article, we will briefly share just that. There must be an “offer” by the offeror Section 2(a) of the Contracts Act refers to the term “offer” as a proposal. Regardless, an offer is a term used to signify party A (an offeror)…
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What happens you manage to obtain a monetary order/judgment against a person who owes you money (i.e. a debtor) but he refuses to comply with the order/ judgment? Below is a quick guide on some of the things you can do (legally!) to secure your money. Bankruptcy proceeding Under this umbrella, the debtor will be…
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What is a “friendly loan” A “friendly loan” is a loan: That is different from those a person obtain from a moneylender or financial institution; The loan is given on trust i.e. it might/ might not have a written agreement between the parties involved In order to secure the repayment of the loan, there may…
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What is a consumer tribunal? The Tribunal for Consumer Claims or the Tribunal Tuntutan Pengguna Malaysia (the “Tribunal”), an independent body established under the Consumer Protection Act (the “Act”) and operates under the Ministry of Domestic Trade, Co-Operatives and Consumerism, is a tribunal that is established to provide an alternate means for consumers to file…
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Is litigation the only solution to a contractual dispute? The short answer is no. This is because, in reality, parties often have alternate ways to settle their dispute. Today, we will talk about one such method that could potentially prevent parties from having to fight tooth and nail in court. However, this particular method only…
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What is coercion in relation to contract If you look closely under the Contact Act 1950 (the Act), you will find two sections discussing what is coercion. You will find the first one in section 15 of the Act. Under section 15, the Act defines coercion as the act of committing, or threatening to commit…
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What is unjust enrichment It is an occurrence in law (usually in a contractual dispute) whereby a person is enriched at the expense of another, and the enrichment is deemed to be unjust in the eyes of the law. For example, A and B entered into a contract whereby A will pay a sum of…
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What happens if your house is not build on time? Can your developer apply for an extension of time to the Controller of Housing to extend the completion date? Is the Controller of Housing empowered to determine such an issue? To find out more, let us look at the Federal Court case of Ang Ming…
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