Contract Law in Malaysia

The ability of a person to enter into a legally binding contract.

A legal agreement that creates obligations enforceable by law.

Contracts entered into by a person who is under the age of 18 in Malaysia are void from the beginning.

The Age of Majority Act 1971 establishes 18 years as the age of majority in Malaysia.

Exceptions to the general rule that minors cannot enter into contracts.

A contract related to marriage is considered valid even if one party is under 18.

A marriage in Malaysia is invalid if either person is under 18 years old.

The Chief Minister can grant special permission for girls aged 16 to 18 to marry.

A scholarship agreement with a minor is valid, even if the minor is under 18 years old.

A scholarship agreement with a minor was previously considered void due to the minor's lack of legal capacity.

The Contracts (Amendment) Act of 1976 states that scholarship agreements with minors are valid.

The Children and Young Persons (Employment) Act 1966 regulates employment of children and young persons.

A person under 15 years old is considered a "child" in the context of employment.

A person between 15 and 18 years old is considered a "young person" in the context of employment.

Light work within a family business is permissible for children under the Employment Act.

A person is considered to have sound mind if they can understand the contract and make a rational judgment about its impact on their interests.

A person usually of unsound mind can enter into a contract if they are of sound mind at the time of contracting.

Persons usually of sound mind cannot contract when they are of unsound mind.

Contracts involving minors or persons of unsound mind are usually void ab initio (from the beginning).

A court can order the party who benefited from a void contract to compensate the other party if it is fair to do so.

A fiduciary relationship is required to order compensation for a void contract, as was seen in the Tan Hee Juan v Teh Boon Keat case.

If a court void an agreement, it can ask the benefiting party (usually the minor) to compensate the other party if it is just.

A court may order a minor to compensate the other party for a void contract if the other party suffered a significant loss due to the cancellation.

A person who intentionally makes someone believe something false, and that person acts on it, cannot later deny the truth.

Minors are exempt from this rule about not denying a false statement, even if they lied about their age.

Minors can avoid a contract, even if they lied about their age.

Minors can plead their true age in court, even if they lied previously.

A minor cannot be sued for making a contract when they lied about their age.

A contract is void from the beginning, meaning it never existed legally. This is because minors lack the legal capacity to enter into agreements.

The court has the power to decide whether a minor should return money received from a contract. This happens only in very rare situations.

A relationship built on trust and responsibility, like the one between a parent and child.

This section of the Contracts Act 1950 states that anyone who benefits from a void contract should return those benefits. However, it doesn't apply to contracts with minors.

When a contract starts void, it never comes into effect. It's considered invalid from the very beginning.

The principle in Section 66 doesn't apply to minors because their contracts were never valid in the first place.

The Privy Council, a high court in the UK, stated this Section doesn't apply to situations where a contract wasn't valid from the start.

Section 66 doesn't apply to cases where a contract was impossible from the beginning.

A legal agreement that is considered invalid from the very beginning, meaning it has no legal effect. It cannot be enforced by either party.

A legal principle that allows someone who provides essential goods or services to a minor or someone incapable of making a contract to recover the cost of those supplies.

A legal rule that states that minors (people under 18 in Malaysia) cannot enter into legally binding contracts.

Goods or services that are considered essential for a person's survival or well-being based on their age, social status, and economic circumstances.

The ability to enter into a legal agreement that can be enforced by law.

A type of contract that involves a minor or someone incapable of making a contract, and where the supplier can seek reimbursement for supplying essential goods or services.

A rule in Malaysian law that states that a minor's contract is void from the beginning and cannot be enforced.

A court case where the Federal Court of Malaysia ruled that a minor who had purchased land had to return the purchase price after vacating the property, despite the contract being void.