The doctrine of privity in Malaysia: the need for reform and the way forward

Tan, Pei Meng (2009) The doctrine of privity in Malaysia: the need for reform and the way forward. PhD thesis, University of Malaya.

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Abstract

ABSTRACT This thesis examines the doctrine of privity in Malaysia and argues that its application to contracts made for the benefit of third parties is inadequate and requires statutory reform. The main obstacle of this doctrine is that it frustrates the contracting parties’ intention to benefit third parties. The difficulty is exacerbated by the growth of contracts made for the benefit of third parties in recent years. It is submitted that contract theory can accommodate third party rights. The development of common law mechanisms to overcome the doctrine of privity in England, Australia and Canada are analysed to consider their application to the position in Malaysia. The common law mechanisms discussed include promisee’s remedies for breach of contract and mechanisms which grant direct rights to the third party to enforce a contract such as trust, agency, tort, Himalaya clauses and others. A comparative study of the use of these mechanisms in the jurisdictions analysed shows that a number of important judicial developments can be undertaken by the Malaysian courts. However, this study also shows that there are limitations with judicial reform of the doctrine of privity and that the more effective solution is through statutory reform. For this purpose, a study on the statutory development of third party rights in England, New Zealand, Australia, together with the position in the United States and the Principles of European Contract Law which are applicable to members of the European Union is also included in this discussion. This comparative study shows that the framework adopted in England now found in Contracts (Rights of Third Parties) Act 1999 is the preferred model for reform subject to a few changes to suit local conditions and circumstances. ABSTRAK Tesis ini mengkaji aplikasi doktrin priviti di Malaysia and menghujahkan bahawa aplikasi doktrin ini kepada kontrak untuk faedah parti ketiga adalah bermasalah and memerlukan ‘statutory reform’. Masalah utama doktrin ini adalah ia tidak dapat memenuhi hasrat parti-parti berkontrak untuk memberi faedah kepada parti ketiga. Masalah ini menjadi lebih rumit disebabkan oleh perkembangan kontrak untuk faedah parti ketiga sejak tahun-tahun kebelakangan ini. Tesis ini mempertikaikan bahawa hak parti ketiga dalam kontrak boleh wujud di dalam teori kontrak. Perkembangan mekanisme dalam ‘common law’ untuk mengelakkan doktrin priviti di England, Australia dan Kanada juga dikaji untuk mempertimbangkan kemungkinan aplikasi mekanisme ini di Malaysia. Mekanisme yang dibincangkan termasuk agensi, amanah, tort, remedi-remedi kemungkiran kontrak dan lain-lain lagi. Kajian mekanisme ini menunjukkan bahawa terdapat banyak perkembangan yang boleh dipertimbangkan untuk diaplikasikan di Malaysia. Akan tetapi, kajian ini menunjukkan bahawa terdapat kelemahan dalam mekanisme ‘common law’ untuk memyelesaikan masalah doktrin priviti. Jalan penyelesaian yang lebih berkesan adalah melalui ‘statutory reform’. Oleh itu, kajian ini juga meliputi perbandingan ‘statutory reform’ untuk doktrin priviti di England, New Zealand dan Australia serta dengan perkembangan di Amerika Syarikat dan ‘Principles of European Contract Law’ yang digunakan oleh ahli-ahli ‘European Union’. Kajian perbandingan ini menunjukkan bahawa ‘statutory reform’ di England melalui ‘Contracts (Rights of Third Parties) Act 1999’ yang terpilih untuk Malaysia tertakluk kepada beberapa perubahan supaya pembaruan undang-undang mengenai doktrin priviti di Malaysia adalah bersesuian dengan keadaan di Malaysia.

Item Type: Thesis (PhD)
Uncontrolled Keywords: Doctrine of privity, Third Party, Bargain theory, Rights of third parties, Malaysia
Subjects: K Law > K Law (General)
Depositing User: MS NOOR ZAKIRA ZULRIMI
Date Deposited: 19 Jul 2013 04:13
Last Modified: 19 Jul 2013 04:13
URI: http://repository.um.edu.my/id/eprint/683

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