2011Universiti Putra Malaysia Institutional Repository (Universiti Putra Malaysia)Open access

Unconscionability and the Clash Between Contractual Justice and Freedom of Contract in Malaysia

Mohd Faiz Sathivellu Bin Abdullah, Rozanah Ab Rahman

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Abstract

Malaysian courts apply conventional principles in determining cases involving contract law. They tend to emphasise the importance of form and procedure over substance and are inclined to enforce a contract as long as it satisfies the basic requirements of validity. The courts are averse to intervening, let alone declare an entire contract nugatory. The doctrine of unconscionability, though much in use in England and other common law jurisdictions appears retarded in Malaysia’s jurisprudence, caught in the clash between contractual justice and freedom of contract. This paper argues in favour of the former and states the case as to why courts should administer justice, and just law.

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What this paper is about

Malaysian courts apply conventional principles in determining cases involving contract law. They tend to emphasise the importance of form and procedure over substance and are inclined to enforce a contract as long as it satisfies the basic requirements of validity. The courts are averse to intervening, let alone declare an entire contract nugatory. The doctrine of unconscionability, though much in use in England and other common law jurisdictions appears retarded in Malaysia’s jurisprudence, caught in the clash between contractual justice and freedom of contract. This paper argues in favour of the former and states the case as to why courts should administer justice, and just law.

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Available abstract

Malaysian courts apply conventional principles in determining cases involving contract law. They tend to emphasise the importance of form and procedure over substance and are inclined to enforce a contract as long as it satisfies the basic requirements of validity. The courts are averse to intervening, let alone declare an entire contract nugatory. The doctrine of unconscionability, though much in use in England and other common law jurisdictions appears retarded in Malaysia’s jurisprudence, caught in the clash between contractual justice and freedom of contract. This paper argues in favour of the former and states the case as to why courts should administer justice, and just law.

Key concepts: Unconscionability, Freedom of contract, Doctrine, Privity of contract, Economic Justice, Jurisprudence, Law, Severability

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