A contract is an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation, which may have elements in writing, though contracts can be made orally. The parties may be natural persons or juristic persons. A contract is a legally enforceable promise or undertaking that something will or will not occur. The word promise can be used as a legal synonym for contract, although care is required as a promise may not have the full standing of a contract, as when it is an agreement without consideration.
Case : Hariram a/l Jayaram & Ors v Sentul Raya Sdn Bhd
Section 56(3) Contracts Act 1950:
Effect of acceptance of performance at time other than that agreed upon
Mr Hariram (Plaintiff) agreed to purchase condominium units from the developer (defendant) under the sale and purchase agreement The defendant had failed to hand over vacant possession of the condominium units to the plaintiffs and to complete the common facilities within 36 months as stipulated by the agreements. For these reasons, and relying on the agreements, the plaintiffs contended that the defendant was liable to pay the plaintiffs a total sum of RM1,592,074.89 as liquidated damages. In opposing the plaintiffs’ application, the defendant raised two legal issues for the determination of the court, namely: (i) whether s 56(3) of the Contracts Act 1950 (‘the Contracts Act’) would operate to exclude a claim for liquidated ascertained damages and (ii) whether the terms of the sale and purchase agreements can be said to operate to entitle the plaintiffs to liquidated ascertained damages in any event despite the provisions of s 56(3) of the Contracts Act as to the requirement of the relevant notices.
6 element of Contract
1. Offer. It is the definite expression (oral or written) or an overt action which begins the contract. It is simply what is offered to another for the return of that person's promise to act. 2. Acceptance. As a...