Signing Contracts with a Malaysian Company

Updated on Monday 27th February 2017

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When executing contracts, a company incorporated in Malaysia must observe the Companies Act for issues concerning contractual actions on behalf of the company and the authentication of documents. The Malaysian Contracts Act is observed for all issues related to valid types of contracts, the performance of such agreements and the liability for breaching the contractual obligations. 

Our lawyers in Malaysia are able to assist you with the execution of a company contact and if your company has problems related to non-performance of breach of contracts.
 

The Malaysian Contract law


The Malaysian Contracts Act includes several main parts and their subsections related to the performance of contracts, the relations created by contract, the liability for breach of contract, guarantees or the appointment of agents and principals.

According to law, the contractual terms must be clearly defined in the document and this agreement can and should be used as an instrument guide the relation between two parties in terms of what each of them should accomplish or perform under the contract. 

An agreement in Malaysia must have the following elements in order to be lawfully enforceable:
- the proposal or offer for the actions defined in the contract;
- the acceptance and consideration;
- the intention to create legally binding relations;
- free consent (the contract is not enforced if its object is illegal).

In performing their activities and developing business relations, all types of companies in Malaysia must conclude written agreements that qualify as enforceable contracts, if they so wish to establish legally binding relations with another party.
 

Types of contracts in Malaysia 


Contracts may be for indemnity – prevention from future loss, bailment – for the delivery of goods, or guarantee removing the liability from a third party in case of default (concluded between three parties, the Surety, the Principal Debtor and the Creditor).

When signing contracts with a company in Malaysia the parties should make sure that the agreement is concluded under the law of contract and the rights and obligations are precisely and lawfully stipulated.

One of the experts at our law firm in Malaysia can help you with a legal consultation on various types of contracts and the lawful conclusion of contractual agreements between legal persons.

You can contact us for more information on related laws for companies in Malaysia. 

 

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