Remedy for Misrepresentation in Contracts: An Analysis Approach in Malaysian and Australian Law

Abstract

A misrepresentation occurs when one party makes a misleading statement that influences the other party's decision to enter into a contract. The other contracting party's voluntary permission to enter into the contract is nullified by the misleading conduct, and that party is entitled to remedies. Therefore, the purpose of this study is to provide an analytical and critical case-by-case analysis of contract misrepresentation in Malaysian and Australian legal systems. The methodology used in this study is legal analysis approach by analysing the law and court cases in Malaysia and Australia. According to the findings, judicial judgements in Malaysia have provided remedies in some circumstances. The study discovered that in Malaysia, court rulings gave contract rescission remedies in some situations, but in others, the court awarded contract rescission along with damages. Contract rescission, on the other hand, is a remedy specifically granted under the Contracts Act 1950. This situation is perplexing because each remedy has different objectives. In comparison to Australia, where the award for each case is determined by the state's legislation, there is a major difference. By reference to the Contracts Act 1950, it is proposed that the provisions be examined to verify their appropriateness with the application of Malaysian misrepresentation laws. By referring to the legal requirements in Australia as a guideline, it is proposed that the provisions in the Contracts Act 1950 be examined to guarantee their appropriateness with the application of Malaysian misrepresentation laws.