Contract Law

Based on Vansluytman.R (2011), a contract is an agreement between two or more parties to perform a service, provide a product or commit to an act, and is enforceable by law. A contract also may defined simply as a legally binding agreement or a set of promises which the law will recognize and it is enforceable. However, things we shall remember is all contracts are agreements, but not all agreements are contract. Hence, to form a contract, there must be an offer and therefore there must be an acceptance, Ferdinand.A (2013). Most importantly is the parties must have entered into an agreement freely and the purpose of the agreement must not be illegal or contrary to public policy. Contract law can be classified into three categories which are the formation of contract, the content of contract and lastly is the end of a contract.

In Malaysia, our contract law is basically governed and enforced by the Contract Act 1950. The remedy of specific performance presupposes the existence of a valid contract between the parties to the controversy. The terms of the contract must be definite and certain. This is significant because equity cannot be expected to enforce either an invalid contract or one that is so vague in its terms that equity cannot determine exactly what it must order each party to perform. It would be unjust for a court to compel the performance of a contract according to ambiguous terms interpreted by the court, since the court might erroneously order what the parties never intended or contemplated. Section 38(1) of the Contracts Act 1950 provides that the parties to a contract must either perform or offer to perform their respective promises, unless such performance has been dispensed with by any law.