Knowledge of the basic principles of the law of contract is useful to readers not only for examinations but also in their everyday lives: Most, if not all of us, have entered into contracts at some point of time –we enter into contract when we board a bus, go shopping or go to work.
Contracts are an integral part of our daily lives. They are constantly being entered into by individuals with other individuals or business, as well as businesses with other businesses, to sell or transfer property, to provide and receive service and other rights and obligations created. The sale and purchase of goods is based on sales contracts, the hiring of employees is based on employment ...view middle of the document...
Where the Contract Act makes certain provisions which differ from English law, the provisions of the Contract Act 1950 must prevail (see Song Bok Yoong v Ho Kim Poui).
In applying English Law, the distinction between subsections 5(1) and 5(2) of the Civil Law Act, 1956 must be noted. Under subsection 5(1) of the Civil Law Act, when English Law is applied to resolve any dispute arising in Peninsular Malaysia other than to the states of Malacca and Penang, “the law to be administered shall be the same as would be administered in England in the like case” at the date of coming into force of the Civil Law Act, 1956, i.e. on 7 April 1956. On the other hand, if the same matter were to arise in the states of Malacca, Penang, Sabah or Sarawak, “the law to be administered shall be the same would administered in England in the like case at the corresponding period, if such question or issue had arisen or had to be decided in England.”
In other words, any development in the English law after 7 April 1956 would not be binding on the courts of the states of Peninsular Malaysia (Penang and Malacca excluded) whereas such changes would apply in the states of Penang, Malacca, Sabah and Sarawak, such developments, however, would be of persuasive authority.
PHARMACEUTICAL SOCIETY OF GREAT BRITAIN v BOOTS CASH CHEMIST LTD  1 QB 401