Are non-compete clauses enforceable in Malaysia? Section 28 of the Contracts Act 1950 generally makes post-employment restraints of trade void, even where the restriction appears reasonable. This guide explains the Malaysian position on non-compete clauses, key cases including Polygram Records and Dynacast, and practical ways SMEs can protect confidential information and business interests.
In MARA v Naguib Mohd Nor, the Malaysian Court of Appeal overturned the High Court and awarded MARA RM6.6 million under a profit guarantee in a share sale agreement. This article explains the decision and the practical lessons Malaysian SMEs should take when drafting profit guarantees, payment mechanisms, warranties and no-waiver clauses.
Not every signed contract is legally enforceable. An agreement may be void because its purpose is unlawful, it lacks consideration, its terms are uncertain or performance is impossible. This article explains when agreements are void under Malaysia’s Contracts Act 1950, how void agreements differ from voidable and illegal contracts, and what happens to benefits already exchanged between the parties.
Business relationships are often built on trust, but disagreements can arise when parties remember their conversations differently. This article explains why Malaysian business owners should document their agreements, how written terms protect commercial relationships and what Malaysian cases involving oral agreements teach us about the difficulty of proving a deal after the relationship has broken down between the parties.
Promissory estoppel may prevent someone from withdrawing a promise after another party has relied on it. This article explains how the doctrine operates under Malaysian contract law, the requirements considered by the courts, its relationship with sections 63 and 64 of the Contracts Act 1950, and whether it can suspend or permanently affect existing contractual rights.
A void contract is not the same as a voidable contract. This guide explains the key differences under Malaysian law, when a contract becomes void or voidable, and how the distinction affects your legal rights, remedies and ability to enforce or cancel an agreement.
Not every mistake allows you to cancel a contract. This guide explains when a mistake can make an agreement void under Malaysian contract law, the difference between mutual and unilateral mistakes, and how sections 21 to 23 of the Contracts Act 1950 apply.
Fraud and misrepresentation both involve false information that may influence someone to enter into a contract, but Malaysian law treats them differently. This guide explains the difference under sections 17 and 18 of the Contracts Act 1950, when a contract becomes voidable, the remedies available, and how fraud must be proven in Malaysian courts.
Not every forced contract is signed after an obvious threat. Sometimes the pressure that forces someone to entr a contract without free consent is much more subtle. An elderly parent transfers property to a child whom they depend on. A…
Exemption clauses are found in almost every commercial contract, but are they always enforceable? Learn how Malaysian courts assess exclusion and limitation of liability clauses, the role of the Consumer Protection Act 1999, and the key factors that determine whether an exemption clause will be upheld.
