Citation

Lee, Yin Harn and Cheong, May Fong (2026) Change of Circumstances: The Position under Malaysian Contract Law. In: Ending and Changing Contracts. Oxford University Press, pp. 298-319. ISBN 978-019899580-7, 978-019899581-4

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Abstract

This chapter deals with the entitlement of parties to be discharged from their contractual obligations as a result of a change in circumstances under Malaysian law, primarily through the doctrine of frustration. It considers the provisions of the Malaysian Contracts Act 1950 relating to frustration, then analyses the courts’ application of the doctrine of frustration in different fact situations, including cases where the subject matter of the contract is no longer available, where the performance of the contract has been rendered unlawful by a supervening event, where the performance of the contract has been rendered more onerous by a subsequent event, where the parties have been unsuccessful in obtaining the approval of a third party which is required for the performance of their contractual obligations, and where the purpose of the contract is said to be ‘frustrated’. The chapter goes on to discuss force majeure clauses and their enforceability. It then sets the legal effects of frustration under both the Contracts Act 1950 and the relevant provisions of the Civil Law Act 1956 (which re-enact the provisions of the English Law Reform (Frustrated Contracts) Act 1943). It then discusses the theoretical justifications for the doctrine of frustration in the Malaysian context and considers how Malaysian courts would deal with various case hypotheticals. It concludes with a note on the measures enacted by the Malaysian Parliament for providing temporary relief from the effects of the COVID-19 pandemic.

Item Type:	Book Section
Uncontrolled Keywords:	performance, consent, Malaysia, COVID-19
Subjects:	K Law > K Law (General)
Divisions:	Faculty of Law (FOL)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	03 Sep 2026 03:11
Last Modified:	03 Sep 2026 03:11
URII:	http://shdl.mmu.edu.my/id/eprint/16592

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