Introduction to Law
Introduction
Contract are an integral part of our daily lives. They are constantly being entered into by individual with other individual or businesses , as well as businesses with other businesses, to sell or transfers property, to provide and receive services and other rights and obligations created. To sale and purchase of goods is based on sale contract, the hiring of employees is based on employment contracts; the lease of property or house is based on a rental or lease contract; and so the list goes on. Business cannot exist without enforceable contracts.
Although the terms ‘contract’ and ‘ agreement’ are often used to mean the same thing, actually the term ‘contract’ can be distinguished from the term ‘agreement’. Every contract involes an element of agreement but not every agreement will result in a contract recognizable by law. This is because sometimes the parties to an agreement may not intend to create legal relations; for example, agreements on social arrangement. Some agreement also do not result in contract because one or more of the principle governing contractual relations may not have been satisfied; for example, when the purpose of the agreement is illegal, or there is a lack of consideration.
The word ‘contract’ may be defined as ‘an agreement’ enforceable by law’. In other words, a contract is an agreement which is legally binding between the parties.
The legislation in Malaysia governing contract is the contract act 1950 (act 136) (revised 1974). However, when there are no provisions in the contract act 1950 to deal with a particular subject concerning the law of contract or if a particular subject is covered by the act but the provision relating to that subject are not exhaustive, English law applies by virtue of the civil law act 1956.
Element of contract
The basic elements of a contract are the following:
a) Offer b) Acceptance of the offer c) Intention to create legal relations d) Consideration e)
Contract are an integral part of our daily lives. They are constantly being entered into by individual with other individual or businesses , as well as businesses with other businesses, to sell or transfers property, to provide and receive services and other rights and obligations created. To sale and purchase of goods is based on sale contract, the hiring of employees is based on employment contracts; the lease of property or house is based on a rental or lease contract; and so the list goes on. Business cannot exist without enforceable contracts.
Although the terms ‘contract’ and ‘ agreement’ are often used to mean the same thing, actually the term ‘contract’ can be distinguished from the term ‘agreement’. Every contract involes an element of agreement but not every agreement will result in a contract recognizable by law. This is because sometimes the parties to an agreement may not intend to create legal relations; for example, agreements on social arrangement. Some agreement also do not result in contract because one or more of the principle governing contractual relations may not have been satisfied; for example, when the purpose of the agreement is illegal, or there is a lack of consideration.
The word ‘contract’ may be defined as ‘an agreement’ enforceable by law’. In other words, a contract is an agreement which is legally binding between the parties.
The legislation in Malaysia governing contract is the contract act 1950 (act 136) (revised 1974). However, when there are no provisions in the contract act 1950 to deal with a particular subject concerning the law of contract or if a particular subject is covered by the act but the provision relating to that subject are not exhaustive, English law applies by virtue of the civil law act 1956.
Element of contract
The basic elements of a contract are the following:
a) Offer b) Acceptance of the offer c) Intention to create legal relations d) Consideration e)