COURT OF APPEAL PUTRAJAYA
LAI CHIN WAH & ANOR – Appellant
Versus
SITRAC CORPORATION SDN BHD – Respondent
| Table of Content |
|---|
| 1. the court may intervene when a contract limits statutory rights. (Para 1 , 2 , 3 , 4 , 5) |
| 2. prohibitions against statutory applications can violate public policy. (Para 10 , 11 , 12 , 14) |
| 3. requirements under the contracts act must not defeat legislative intentions. (Para 16 , 34 , 45) |
| 4. the ruling underlines the importance of statutory rights in property transactions. (Para 137 , 138) |
[1] The circumstances under which the Court may intervene with the freedom of contract are limited. It is easier to intervene in cases of illegality where parties cannot agree to do that which the law prohibits. What then is the position where a matter is not prohibited by statute but expressly stated as a right of a party?
[2] The question then is whether contracting out of a statute would be permitted. Should the Court nevertheless refuse to enforce such a term if to do so would unfairly prejudice the rights of the weaker party to the bargain, or that it would defeat the purpose of the law or be contrary to public policy. Interestingly in this appeal, the issue is whether a developer can enforce a term in an agreement where the purchaser has agreed not to apply fo
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