Akta Kontrak 1950 (Akta 136) & Akta Kontrak Kerajaan 1949 (Akta 120) (Hingga 5hb Mac 2023)

The Akta Kontrak 1950 (Akta 136) and Akta Kontrak Kerajaan 1949 (Akta 120) are two Malaysian laws that regulate contracts in the country. Here are some details about each act:

1. Akta Kontrak 1950 (Akta 136)

The Akta Kontrak 1950 is the main legislation that governs contracts in Malaysia. It sets out the rules and principles that apply to the formation, performance, and enforcement of contracts. Some of the key provisions of the act include:

• Section 2 defines a contract as an agreement that is legally binding and enforceable by law.

• Section 3 requires that a contract must be made by the free consent of parties who are competent to contract.

• Section 10 provides that agreements that are uncertain, impossible, or unlawful are void.

• Section 11 provides that agreements that are contingent on the happening of an uncertain future event are valid if the event is possible and not opposed to public policy.

• Section 14 requires that a contract must be supported by consideration (something of value that is given in exchange for something else).

• Section 40 provides that a contract can be discharged by performance, breach, frustration, or agreement.

2. Akta Kontrak Kerajaan 1949 (Akta 120)

The Akta Kontrak Kerajaan 1949 is a special law that applies to contracts made by or on behalf of the Malaysian government. It sets out the rules and procedures that must be followed when entering into government contracts. Some of the key provisions of the act include:

• Section 2 defines a government contract as an agreement made by or on behalf of the government for the provision of goods, services, or works.

• Section 3 requires that government contracts must be made in accordance with the procedures and guidelines set out in the act and any regulations made under the act.

• Section 9 provides that a government contract may be terminated by the government if the contractor breaches the terms of the contract or fails to perform its obligations under the contract.

• Section 10 provides that disputes arising from government contracts must be resolved through arbitration in accordance with the procedures set out in the act.

• Section 14 provides that government contracts must be executed in accordance with the rules and procedures set out in the act and any regulations made under the act.

Both acts are important in ensuring that contracts are formed, executed and enforced properly in Malaysia. It is important for businesses and individuals to be familiar with the provisions of these acts to avoid any legal disputes or complications.