Offer and Acceptance Contract Law Malaysia

Contract law is an essential part of doing business in Malaysia. It is the legal framework that governs the formation and enforcement of agreements between parties. The offer and acceptance contract law is one of the most fundamental principles in contract law. In this article, we will explore what offer and acceptance contract law is and how it applies in Malaysia.

What is an offer and acceptance contract?

An offer and acceptance contract is a legal agreement between two parties that is formed when one party (the offeror) offers to enter into a contract with another party (the offeree), and the offeree accepts the offer. This agreement is usually in the form of a written or verbal agreement.

In Malaysia, offer and acceptance contracts are governed by the Contracts Act 1950, which outlines the requirements for a valid contract. According to the Act, a contract can be formed when an offer is made, and that offer is accepted without any further conditions or amendments.

What are the essential elements of an offer?

To be a valid offer, several essential elements must be present. These elements include:

1. Intention to create legal relations – The offeror must have a genuine intention to enter into a contract with the offeree.

2. Certainty – The terms of the contract must be clear and specific to avoid any ambiguity.

3. Communication – The offer must be communicated to the offeree.

4. Invitation to treat – An offer is not the same as an invitation to treat. An invitation to treat is an invitation for the other party to make an offer and is not legally binding.

What is acceptance?

Acceptance is a crucial element of an offer and acceptance contract. Acceptance is the unqualified and unconditional agreement of the offeree to the terms of the offer. Acceptance can be in the form of words, conduct, or even silence.

In Malaysia, acceptance must be made in the same manner as the offer. For example, if the offer was made verbally, then acceptance must also be made verbally.

Can an offer be revoked?

An offer can be revoked if it has not been accepted. The revocation can be communicated to the offeree by the offeror. However, if the offer has already been accepted, it is considered a binding contract, and the offeror cannot revoke it.


In conclusion, offer and acceptance contract law is an essential principle in contract law in Malaysia. It ensures that an agreement between parties is legally binding and enforceable. Before entering into a contract, it is crucial to understand the essential elements of an offer and acceptance contract and how they apply in Malaysia.

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