What is Contract Law?

Basically, before we go further to the main topics, i would like to explain about the introduction of contract law first. 

What does it means by contract?

Contract can be defined as an agreement between private parties creating mutual obligations enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are mutual assent, expressed by a valid offer and acceptance, adequate consideration, capacity and legality. 

A legal scholars once said, “Contract is an agreement between two parties which, on the first impression, appears to fulfill all the mandatory of a valid contract" (Dobson, 1997).A contract can be either oral or written. However, oral contracts are more challenging to enforce and should be avoided, if possible.

What is the importance of contract law? 

In order to operate a business, Contract between two or more parties is very crucial. Although contract can take place in here and there; in a business concern, it is important for both parties to enter into a contract for further operation and to protect each other's rights and interests. Therefore, it is crucial to understand the rules governing them to ensure you have a valid contract.

What is the Act used in Contract Law?

Basically, our contract law is governed and enforced by the Contract Act 1950 in Malaysia. This Act was modelled from the Indian Contract Act 1872. Through time, however, new forces have challenged the traditional views of contract law, supported by legislative reforms and judicial developments. The shift from classical to modern contract law has been taken cognizance of and is generally accepted in the common law world.

This is the example of image for Contract Act 1950