An agreement enforceable by law

An agreement which is legally bindingbetween the parties

In Malaysia, the governing legislationis CONTRACT ACT 1950.

The parties must have intended theiragreement to have legal consequences.The law will not concern itself withpurely domestic or social agreements.

The terms and conditions must beclear in meaning. When the terms arevague it is difficult for the courts toconstrue what in actual fact wasagreed by the parties and what arethe obligations and duties arisingfrom such terms.

Parties entering contract mustcompetent/ have legal capacity tocontract.

Section 11 of Contracts Act 1950:

When the party accept the offerfrom offeror

the acceptance can be make in word(express) or by other than word(implied)

Both parties must have providedconsideration, ie, each side mustpromise to give or do something forthe other.