Minor’s Capacity to Contract in Malaysia: Issues and Challenges

Abstract

Generally every person is competent to enter into a contract. The law, however, places limitations upon the capacity of certain persons to make a binding contract. These persons include minors. The Contracts Act 1950 does not stipulate the effect of an agreement entered into by a minor and from the decided cases show that all contracts entered into by a minor is void and a minor cannot sue or be sued under such contract. The article is aimed to discuss the effect of minor‘s contract in the case of minor‘s false representation of age and exceptions to the general rule on capacity to contract. The study adopts a qualitative approach where data are collected through library research and contents analysis method. This article suggests some recommendations and solutions to improve the law in order to curb a problem raised in the minor‘s contract.