First implementation. 1950 (F.M. Regulation No. 14 of 1950) 29. Any agreement which absolutely prevents a party from asserting its rights under or in respect of a contract through the usual judicial procedure before the ordinary courts, or which limits the period within which it may assert its rights in that manner, is null and void in this regard. (b) A to Port Dickson sends a letter asking him to sell cotton stored in a warehouse in Kelang, then by letter revokes his right to sell and orders B to send the cotton to Port Dickson. Upon receipt of the second letter, B enters into a contract with C, who knows the first letter, but not the second, for the sale of the cotton to him. C pays B the money with which B flees. Paying C is good for A. (c) A asks B, his agent, to pay some of the money to C. A dies and D takes possession of his will.
B pays the money to C after A`s death, but before he hears about it. Payment is good to D, the executor. Obligation of the agent to terminate the agency by death or madness of the client (a) A and B contract that A builds a house for B at a fixed price. A`s promise to build the house must be kept before B promises to pay for it. (b) contracts A and B, which A disposes of its inventory to B at a fixed price, and B undertakes to provide security for the payment of the money. A`s promise does not have to be kept until the guarantee is given, as the nature of the transaction requires A to have a guarantee before delivering his shares. Liability of the party preventing an event in which the contract is to become effective Explanation — When estimating the damage resulting from a breach of contract, it is necessary to take into account the means of remedying the inconveniences caused by the non-performance of the contract. 48 Laws of Malaysia ACT 136 20.
If consent to an agreement is caused by undue influence, the agreement is a contract that is voidable at the discretion of the party whose consent was so caused. Such a contract may be terminated either in absolute terms or, if the party entitled to cancel it has obtained an advantage from this Agreement, on such terms as may appear fair to the court. A orders B to exempt B from the consequences of a proceeding that C may bring against B in the amount of RM200. This is a compensation agreement. (2) A person who is usually of an unhealthy mind, but sometimes of a healthy mind, may enter into a contract if he is in his good mind. (3) A person who is usually in a clear mind, but sometimes also in an unhealthy mind, cannot enter into a contract if he is of an unhealthy mind. FIGURES 84. In the absence of a contract to the contrary, the death of the guarantor is considered a revocation of a permanent guarantee, insofar as this applies to future transactions. 57. (1) An agreement to perform an act that is impossible in itself is null and void. Contract, subsequently becoming unfit or illegal (2) A contract for an act that becomes impossible after the conclusion of the contract or becomes illegal due to an event that the promisor could not prevent becomes void if the act becomes impossible or illegal. (2) Each of the two or more joint promisors may require any other joint promisor to contribute also with himself to the execution of the promise, unless the contract indicates an intention to the contrary.
(a) A orders B`s ship to pick up and carry cargo to be supplied by A from Kelang to Singapore, B receiving specific cargo for its carriage. A does not provide cargo for the vessel. A cannot claim the execution of B`s promise and must compensate B for the damage suffered by B as a result of the non-performance of the contract. d) A contract to sing for B at a concert of RM1,000 paid in advance. A is too sick to sing. A is not obliged to compensate B for the loss of profit that B would have made if A had been able to sing, but must reimburse B for the RM1,000 paid in advance. In each of these cases, such an agreement is a contract. Statement 1 — Nothing in this section affects the validity of a donation actually made between the donor and the recipient. a) A becomes the guarantor of B`s conduct as manager of C`s bank. Subsequently, B and C agree, without A`s consent, that B`s salary will be increased and that he will be responsible for a quarter of the losses due to overdrafts. B allows a customer to overdraft and the bank loses a sum of money.
A is released from his guarantee by the deviation from his guarantee without his consent and is not obliged to make good this damage. 29. Agreements restricting the nullity of legal proceedings Exception 1 — Storage of the contract to refer to arbitration disputes that may arise (3) (a) If a person who is able to control the will of another enters into a contract with him and the transaction appears prima facie or on the evidence presented in order to be unscrupulous, the burden of proof that the contract was not concluded by undue influence lies with the person who is able to control the will of the other. 97. Where a person in a contract gives a guarantee that the creditor will not comply until another person has joined as a guarantor, the security is not valid if that other person does not join. (a) A sells B at auction a horse that A knows is not healthy. A says nothing to B about the horse`s incompetence. This is not a scam in A.b) B is A`s daughter and has just reached adulthood. In the present case, the relationship between the parties would make it an obligation of A to tell B whether the horse is not healthy.
(c) B says to A, «If you don`t deny it, I guess the horse is healthy.» A says nothing. Here, A`s silence is synonymous with language. (d) A and B enter into a contract as contractors. A has private information about a price change that would affect B`s willingness to continue the contract. A is not obliged to inform B. 94. The guarantor is entitled to any security that the creditor holds against the principal debtor at the time of the conclusion of the contract of guarantee, whether or not the guarantor is aware of the existence of such security; and if the creditor or, without the consent of the guarantor, loses parts of the security, the guarantor is released up to the value of the security. Illustrations Storage of the contract for the submission of questions that have already arisen Exception 2—Nor makes this section illegal in writing any contract by which two or more persons agree to refer to arbitration, to touch any question between them that has already arisen, or a law relating to references to arbitration. *Exception 3 — Nor may this section declare unlawful a written contract between the Government and any person in respect of the award of a scholarship by the Government that provides that the discretion exercised by the Government under this Agreement is final and conclusive and shall not be challenged by any court. 33.
Execution of event-dependent contracts 88. A contract between the creditor and the principal debtor whereby the creditor enters into a settlement with the principal debtor or promises to give the principal debtor time or not to sue the principal debtor, releases the guarantor, unless the guarantor accepts this contract. (e) A, the owner of a vessel, enters into a contract with B for the transfer of a cargo of tin to Singapore for sale at that location from a specified date. The boat does not take off at the specified time for avoidable reasons, as the arrival of the cargo in Singapore is delayed beyond the time it would have arrived if the boat had sailed in accordance with the contract. .