LLB102A: Despite the general presumption which arises in business arrangements in Malaysia, do parties in a contract always intend to create legal relations?

ASSIGNMENT QUESTION

The High Court in Sri Kajang Rock Products Sdn Bhd v Mayban Finance Bhd [1992] 1 CLJ 204 stated at p 206, “To constitute a valid contract there must be separate and definite parties thereto; those parties must be in agreement, that is there must be some consensus ad idem; those parties must intend to create legal relations in the sense that the promises of each side are to be enforceable simply because they are contractual promises.”

Despite the general presumption which arises in business arrangements in Malaysia, do parties in a contract always intend to create legal relations?

This assignment assesses Course Learning Outcome 1:

Explain the fundamental legal principles, concepts and doctrines pertaining to the law of contract (C2, PLO1)