Malaysia legislation

Section 30

of CONTRACTS ACT 1950

Section 30

Agreements void for uncertainty

Agreements, the meaning of which is not certain, or capable of being made certain, are void.

(a)

A agrees to sell to B “a hundred tons of oil”. There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.

(b)

A agrees to sell to B one hundred tons of oil of a specified description, known as an article of commerce. There is no uncertainty here to make the agreement void.

(c)

A, who is a dealer in coconut oil only, agrees to sell to B “one hundred tons of oil”. The nature of A’s trade affords an indication of the meaning of the words, and A has entered into a contract for the sale of one hundred tons of coconut oil.

(d)

A agrees to sell to B “all the grain in my granary at Ipoh”. There is no uncertainty here to make the agreement void.

*NOTE—See Appendix–Contracts (Amendment) Act 1976 [Act 32a] with respect to Scholarship

Agreements.

Contracts 29

(e)

A agrees to sell to B “one thousand gantangs of rice at a price to be fixed by C”. As the price is capable of being made certain, there is no uncertainty here to make the agreement void.

(f)

A agrees to sell to B “my white horse for five hundred ringgit or one thousand ringgit”. There is nothing to show which of the two prices was to be given. The agreement is void.

Agreements by way of wager void