Section 28 of the Contracts Act 1950 Malaysia: An Overview

The Contracts Act 1950 Malaysia is a piece of legislation that governs the law of contract in the country. It contains a number of provisions that outline the rights and obligations of parties to a contract, as well as the various conditions that must be met for a contract to be valid and enforceable.

One of the most important provisions in the Contracts Act 1950 Malaysia is Section 28. This section deals with the right to compensation for breach of contract, and sets out the various circumstances in which compensation may be awarded.

Under Section 28, a party to a contract who suffers loss as a result of a breach by the other party is entitled to receive compensation from the party who has committed the breach. The amount of compensation that can be claimed will vary depending on the nature and extent of the loss suffered, and may include both direct and indirect losses.

In order for compensation to be awarded under Section 28, it is necessary to show that the breach of contract was the direct cause of the loss suffered. This means that the loss must have been foreseeable at the time the contract was made, and that the party claiming compensation took reasonable steps to mitigate their losses.

One important point to note with regard to Section 28 is that it only applies to breaches of contract that occur after the contract has been entered into. This means that if a breach occurs before the contract is formed, or if the breach is of a condition that goes to the very heart of the contract, then compensation may not be available.

Overall, Section 28 of the Contracts Act 1950 Malaysia is a crucial provision that ensures that parties to a contract are able to receive compensation when their contractual rights are breached. By setting out the circumstances under which compensation can be awarded, it provides clarity and certainty for businesses and individuals alike, and helps to promote the efficient and effective operation of the Malaysian economy.