Legal issue due to unfair contract term: the Malaysia perspective

Zuhairah Ariff, Abd Ghadas and Farihana, Abdul Razak (2020) Legal issue due to unfair contract term: the Malaysia perspective. Journal of Critical Reviews, 7 (19). pp. 7457-7463. ISSN 2394-5125

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Abstract

A contract is an agreement made between the parties intended to bind one another according to the terms set out in the agreement. The contract entered into by both parties, although, is not always fair to them, but they have no real understanding of this issue. In Malaysia, the inadequacy of the law to restrict unfair terms in the contract leaves room for issues concerning the inequality of bargaining power between the contracting parties. Contracts Act 1950 is common enforcement of the law regulating contractual relationships in Malaysia for the time being. Under the Consumer Protection Act 1999 (Amendment 2010) there are provisions governing unfair contract terms, but the Act is specific only to the consumer, and not the community at large. The research methodology presented in this paper is doctrinal legal research. Consequently, this paper discusses legal issues resulting from unfair contract terms in Malaysia. Hopefully, this paper would become a contribution to the body of knowledge and contribute towards more in-depth research in the area of law of contract.

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