Public Policy Under The Contracts Act 1950

Abstract

The Malaysian court have, in a number of case considered the question of law of whether certain agreements were void as being opposed to public policy. In one of the earliest cases reported, Engku Leh v Che Wok, a guarantee, the effect of which was to stifle a criminal prosecution, was hled to be void by the Court of Appeal as being contrary to public policy. In Yap Chee Meng v Aji-no-moto (Malaysia) Berhad, Harun J. in the High Court refused to set aside a settlement negotiated by a solicitor on behalf of his client on the ground of public policy.