This chapter examines the formation of contract under Malaysian law. The Malaysian Contracts Act 1950 (‘MCA 1950’) is modelled on the Indian Contract Act 1872 (‘ICA 1872’). In common with the ICA 1872, the analytical structure for the formation of contract is strikingly similar to that of English law, with unique definitions introduced by the ICA 1872. A proposal, upon acceptance by the person to whom the proposal is directed, becomes a promise; reciprocal promises which constitute consideration for each other result in an agreement; upon the satisfaction of the other conditions for the formation of contract, a contract is constituted. The continuing influence of English common law on Malaysian law is expressly provided by sections 3 and 5 of the Civil Law Act 1956; these form the basis for the reception of the doctrine of promissory estoppel which is absent in the text of the MCA 1950. Where the MCA 1950 does not preclude the adoption of English legal developments, the Malaysian courts have been ready to adopt such developments.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.