Who Can Enter into a Contract Malaysia
In Malaysia, the law recognizes that only certain individuals or entities can enter into enforceable contracts. Contracts form the foundation of many business transactions and legal dealings, so it`s important to understand who can legally enter into a contract in Malaysia.
Here are the five key categories of people and organizations who can enter into a contract in Malaysia:
1. Adults: In Malaysia, the age of majority is 18 years old. Therefore, any person who has reached the age of 18 years is considered an adult and has the legal capacity to enter into a contract. This means that they have the ability to understand the terms and consequences of the contract and to fulfill their obligations under it.
2. Corporations: Corporations are legal entities that are created under Malaysian law and are capable of entering into contracts. The company`s directors or authorized representatives may sign contracts on behalf of the corporation.
3. Partnerships: Partnerships are groups of individuals who come together to form a business. Each partner has the legal capacity to enter into a contract on behalf of the partnership.
4. Trusts: A trust is a legal entity that holds property or assets on behalf of a beneficiary. The trustee has the authority to enter into contracts relating to the trust, but only in accordance with the terms of the trust deed.
5. Government entities: Government entities, such as government departments and statutory bodies, have the legal capacity to enter into contracts. However, contracts with government entities are subject to specific legal requirements and procedures.
It`s important to note that certain individuals may have limited capacity to enter into contracts. For example, minors under the age of 18, persons of unsound mind, and bankrupt individuals may have restrictions on their ability to enter into enforceable contracts.
In conclusion, understanding who can enter into a contract in Malaysia is crucial when entering into any business transaction or legal agreements. It`s important to ensure that all parties involved in the contract have the legal capacity to enter into it to avoid any issues or disputes in the future.