Kuala Lumpur: A committee to study amendments to the Contract Act 1950 (Act 136) has been set up to conduct a comprehensive study of the act, which was last amended in 1976. The Prime Minister’s Department’s Legal Affairs Division announced the formation of this committee, which includes the assistance of Monash University and Universiti Kebangsaan Malaysia (UKM) and will be chaired by Federal Court Judge Datuk Vazeer Alam Mydin Meera.

According to BERNAMA News Agency, the Legal Affairs Division highlighted that a significant portion of the act relies on outdated definitions and legal principles that do not align with the requirements of the modern era. The division noted that several provisions fail to address complex issues related to transactions, particularly in the contexts of e-commerce and digital agreements.

The division further explained that the committee’s mandate includes studying the developments in contract law, examining significant Malaysian court decisions, and focusing on core fields of contract law. This initiative aims to restate contract law, assess the necessity for renewing Act 136, and prepare a comprehensive report on the potential amendments. The study is expected to span 24 months, divided into three distinct phases.