Malaysia legislation
Section 55
Section 55
Notwithstanding paragraph 54(f), where a contract comprises an affirmative agreement to do a certain act, coupled with a negative agreement, express or implied, not to do a certain act, the circumstance that the court is unable to compel specific performance of the affirmative agreement shall not preclude it from granting an injunction to perform the negative agreement:
Provided that the applicant has not failed to perform the contract so far as it is binding on him.
(a)
A contracts to sell to B for RM1,000 the good-will of a certain business unconnected with business premises, and further agrees not to carry on that business in Klang. B pays A RM1,000 but A carries on the business in Klang. The court cannot compel A to send his customers to B, but B may obtain an injunction restraining A from carrying on the business in Klang.
(b)
A contracts to sell to B the good-will of a business. A then sets up a similar business close by B’s shop, and solicits his old customers to deal with him. This is contrary to his implied contract, and B may obtain an injunction to restrain A from soliciting the customers, and from doing any act whereby their good-will may be withdrawn from B.
(c)
A contracts with B to sing for twelve months at B’s theatre and not to sing in public elsewhere. B cannot obtain specific performance of the contract to sing, but he is entitled to an injunction restraining A from singing at any other place of public entertainment.
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(d)
B contracts with A that he will serve him faithfully for twelve months as a clerk. A is not entitled to a decree for specific performance of this contract. But he is entitled to an injunction restraining B from serving a rival house as clerk.
(e)
A contracts with B that, in consideration of RM1,000 to be paid to him by B on a day fixed, he will not set up a certain business within a specified distance. B fails to pay the money. A cannot be restrained from carrying on the business within the specified distance.
Specific Relief 41
Act 137
LIST OF AMENDMENTS
Amending law
Short title
In force from
L.N. 332/1958
Federal Constitution 13-11-1958
(Modification of Laws)
(Ordinances and Proclaimations)
Order 1958
Act A238
Specific Relief (Malay States)
01-07-1974
(Amendments and Extension)
Act 1974
Act 160
Malaysian Currency (Ringgit)
29-08-1975
Act 1975
Act A811
Specific Relief (Amendment)
21-02-1992
Act 1992
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Act 137
LIST OF SECTIONS AMENDED
Section
Amending authority
In force from
Long title
Act A238 01-07-1974 1
Act A238 01-07-1974 2
Act A238 01-07-1974 7
Act A811 21-02-1992 8
Act A238 01-07-1974 9
Act A238 01-07-1974 12
Act A238 01-07-1974 20
Act A238 01-07-1974 43
Act A238 01-07-1974 44
Act A238 01-07-1974 49
Act A238 01-07-1974 51
Act A238 01-07-1974 54
Act A238 01-07-1974 56