Contract Law And Contracts

Contract is the basis of all commercial transactions. A contract is a deal or a bargain from which both parties expect to benefit. The word ‘contract’ can be defined as an agreement involving two or more people that is legally binding upon the parties. The contract law in Malaysia is mainly enforced and governed by the Contracts Act 1950. Consideration is the main elements to make a legal contract. Besides, a void agreement has no legal effect. I agree that when an agreement, which was legal and enforceable when it was entered in to, may subsequently become void due to agreement without consideration or other reason. Consideration defined by Section 2(d) Contract Act 1950 “When, at the desire of the promisor, the promisee or any other person

It provides: - “A find B’s purse and gives it to him. B promises to pay A $50. This is a contra8ct.” and “A support B’s infant son. B promises to pay A’s expenses in so doing. This is a contract.”

Lastly, in Section 26(c) Contract Act 1950 state that “or is a promise to pay a debt barred by limitation law” means that “it is a promise, made in writing and signed by the person to be changed therewith, or by his agent generally or specially authorized in that behalf, to pay wholly or in part a debt of which the creditor might have enforced payment but for the law for the limitation of

This case happened a discharge of contract, because the flight which was supposed to fly on 1st of December 2009 was cancel without announcement and the airline was unable to give Theresa an alternative flight on that day. So that, Theresa cannot fly to Melbourne from Kuala Lumpur on that day and this can be definitely say that AirMalaysia had breach the contract. Breach of contract can be expressly explained by Section 40 Contract Act 1950. It states, “When a party to a contract has refused to perform, or disabled himself from performing, his promise in it is entirely, and the promise may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance”. This means, one of the parties’ failures to perform his obligations or responsibilities of a contract, there is a breach of the contract which entitles the person does not take appropriate action which may include