The difference between a contract of service and a contract for service is one of the most important distinctions in Malaysian employment law. It determines whether a worker is legally recognised as an employee entitled to statutory protections such as EPF, SOCSO, and unfair dismissal claims, or merely an independent contractor with limited legal rights under employment legislation in Malaysia.
Construction contracts are far more than simple agreements between owners and contractors. They set out the scope of work, payment terms, timelines, technical specifications, and dispute resolution mechanisms that keep projects running smoothly. This article explores how construction contracts differ from ordinary contracts, the risks they manage, and the standard forms commonly used in Malaysia’s construction industry today.
Can family members legally sue each other? The answer is yes, but not every promise between family members creates a legally enforceable contract. This article explains how courts determine whether family arrangements, loans, property agreements, or inheritance promises were intended to have legal consequences, using practical examples and local court decisions to illustrate when relatives may successfully bring legal claims.
Unilateral contracts arise when a promise is accepted through performance rather than words. The law recognises that actions can create binding obligations. This article explores the famous Carlill v Carbolic Smoke Ball Co case and explains when unilateral offers become irrevocable once performance has begun, using practical examples that are easy to understand.
Conditions precedent are common in contracts, but many people misunderstand their legal effect. This article explains the difference between contingent and promissory conditions, how courts interpret them, and why the wording of a contract matters. Learn when a contract becomes enforceable, when parties may walk away without liability, and when a breach may give rise to damages or termination rights.
Does the phrase “subject to contract” automatically mean there is no binding agreement? Not always. Malaysian courts look beyond the wording to determine the true intention of the parties. This article explains when negotiations become legally enforceable, how courts interpret conditional agreements, and why emails, letters of offer, and conduct may still create contractual obligations despite unsigned formal agreements.
A valid contract requires five essential elements: offer and acceptance, intention to create legal relations, consideration, capacity and free consent, and legality of object. Governed by the Contracts Act 1950, these principles ensure agreements are enforceable. Understanding these elements will give you a good grasp on the formation of a binding contract.
A shareholders’ agreement is a vital document for private companies in Malaysia, setting out how decisions are made, rights are protected, and disputes are resolved. By clearly defining roles, safeguards, and exit mechanisms, it helps prevent conflicts and ensures both majority and minority shareholders are treated fairly while maintaining transparency and business continuity.
The doctrine of privity of contract limits enforcement of contractual rights and obligations to the parties involved. Recognised in English common law and applied in Malaysia, it prevents third parties from suing or being sued on a contract, subject to key exceptions such as trusts, agency, statutory provisions, assignment, and tortious interference.
FIDIC contracts are internationally recognised standard form agreements used in construction and engineering projects. Published by the Fédération Internationale Des Ingénieurs-Conseils, they provide a structured framework for allocating risk, defining responsibilities, and managing disputes. Widely used in large-scale and cross-border projects, FIDIC contracts offer a practical and balanced starting point for project delivery.
