MALAYSIA
Contracts law is partly codified and partly relying on common law.
According to Section 2(b) of Contracts Act 1950, a contract is defined as an agreement enforceable by law. This could also be construed to be an agreement which is legally binding.
When a matter before the court does not fall within the ambits of the Contracts Act 1950 ('CA 1950') the English laws will be sought to resolve the matter in accordance to the Civil Law Act. For avoidance of doubt, where there is a conflict between the rules of the common law and CA 1950, the provisions of the latter will prevail (Song Bok Yoong v Ho Kun Poui 1968).
However, the applicability of English law needs to be distinguished between Peninsular Malaysia; and the Strait States andSabah and Sarawak. Section 5(1) of the Civil Law Act 1956, provides that the English law that will be applied would be the same law in England at the date the Civil Law Act 1956, came into force. This means to say any developments in the area beyond this time in England will not be taken into consideration by the Courts.
Whereas, for the Straits states and Sabah and Sarawak the English law that will be used to decide on a given case would be the current applicable laws in England. Nevertheless, these developments will only be considered as persuasive authorities.
